Legendary Short Seller Says People Have Given Up On Gold & Silver Space, Sector May See Explosive Gains
Legendary Short Seller Says People Have Given Up On Gold & Silver Space, Sector May See Explosive Gains from King World News
Today a legendary short seller said people have given up on the gold and silver space and the sector may see explosive gains as a result.
By Bill Fleckenstein President Of Fleckenstein Capital
August 8 (King World News) – Overnight the stock index futures were weaker, ostensibly because of Trump’s saber rattling regarding North Korea. I say “ostensibly” because, for the most part, anything that Trump has done that might be perceived as a negative has not really mattered to the stock market for more than about five minutes, so I hesitate to ascribe any of the action to his machinations. Especially since the one thing that was completely predictable from the beginning was that he was going to be very unpredictable and create massive uncertainty. However, those two qualities have not mattered much to anything, except perhaps the dollar. Meanwhile the FAANG complex lost another leader as NFLX was pummeled on the Disney news…
In any case, after opening on the weak side, the market started to grind higher and by midday the losses had been reduced to about 0.2%. In the afternoon, the rally fizzled, but the indices held together with the Nasdaq the weakest, as it fell 0.4%.
Away from stocks, green paper closed lower after trading on both sides of unchanged, oil was a nonevent, and fixed income was higher. The metals were stronger, led by silver, which gained almost 3% compared to gold’s 1.2%, but once again the miners chose not to respond much to the underlying strength of the metals.
With All Disrespect
When discussing psychology it is difficult to be precise, but it seems to me that the hatred for the metals complex is quite high