Big movements take time to develop - Jesse Livermore
Looks like I've got good company:
While the mainstream media continues to spew out bearish news and headlines on precious metals and (especially) mining shares, SAC Capital Partners LP, a $20 billion dollar group of hedge funds founded by Stephen A. Cohen, quietly positioned itself in over $240 million dollars worth of gold, silver, and mining share investments during Q4 2012...Of great interest is the structure of those positions. They are indicating, that the firm is expecting a massive spike in both gold and silver, as well as a staggering move higher in the mining shares. LINKIt may not seem like the most auspicious day to post commentary outlining why I believe that the correction in the precious metals has just about run its course. However, considering that all the downward movement this month in gold/silver has occurred exclusively during Comex trading hours, today further bolsters my conviction that this particular moment in the precious metals market is the pinnacle of a "contrarian's" play.
While I happened to have penned my commentary last night, it turns out that Zerohedge posted a piece a few minutes ago that reinforces my claims:
It appears that from the open of US equity trading pre-market to the close of Europe's equity markets (~0730ET to ~1130ET)[Comex trading hours, basically], Silver has been offered non-stop. Outside of that four-hour window, on average, Silver has not moved in the month of February.Here's the LINK for the whole posting. As you can see visually from the Zerohedge piece, 100% of the selling in silver (and gold) market has occurred in the paper trading market. Meanwhile, China and India continue to hoover up physical gold while the Comex crooks sleep off their booze.
I've learned over the past 12 years to never call a definitive bottom to a rigged, corrupt market like the Comex. However, I am willing to make a "the market is bottoming" prognostication. I've explained why in this article posted by Seeking Alpha: Market Is Bottoming
While an entry today is not a risk-free proposition, it is impossible to pick bottoms and those who make the claim that they can are charlatans. However, buying nasty price corrections during the last 12 years of the precious metals bull has been richly rewarded and I will make the claim that this year will be the 13th.