Chris Mack a contributor to Seeking Alpha has emphasized something we have been indirectly saying since the reform bill passed.
The big banks short positions have increased substantially. The regulations coming down on them due to the Volker rule in the reform bill is giving them 4 months to dismantle and close down the prop. desks. Four months is plenty of time to position for one last hoorah, and it seems like it’s coming.
With gold and silver breaking out to highs unseen in decades if ever, on gains for more than 30 days straight. A correction is bound to be coming.
There is money to be made in precious metals, but you must stay in the loop and be on the right side of things.
The dollar is losing value, just as other fiat currencies throughout the world. But don’t get caught up in the hype of super inflated gold and silver prices. Pay attention to the indicators, an outline in uncertain times is better than having no direction at all.
These prop. desks will not shut without one last payday.
Consult with your trader to make sure you are in a position to profit from the end result of all this. If you do not have one, fill out the form to the right to get a free consultation.
Chris Macks article on SeekingAlpha can be read here;