THE BOTTOMING PROCESS FOR PRECIOUS METALS

In our last editorial we pointed out how the gold stocks had veered off the recovery course. They fell well below the recovery template and fell below their 50-day moving averages. Furthermore, the positive “non-taper” news turned out to be the mother of all bull traps for traders. The market soared on presumably an epic amount of short covering. Yet that only served to be a selling opportunity for traders. That sequence of events only strengthened our view that the sector continues to be headed for a retest which could serve as the mother of all buying opportunities.

Read more: http://tinyurl.com/o6g352w

As investors shift, housing is the new stock market

All it took was a historic crash that created an epic opportunity: Housing has morphed from a form of shelter to one of the most popular tradable assets, thanks to a huge influx of institutional investors in a mammoth, albeit decreasing, supply of distressed properties. That is why it should come as no surprise the housing market is now nearly as volatile as the stock market.

Read more: http://www.cnbc.com/id/100988740

SILVER SHORT SQUEEZE

“Silver has suffered a miserable year so far, bludgeoned by gold’s unprecedented selling anomaly. The exceptional weakness in both metals was greatly exacerbated by futures speculators piling on short-side bets. But with silver shorts hitting record extremes, a super-bullish short squeeze now looms.Any rapid silver rally is likely to spook the highly-leveraged futures traders, sparking a massive stampede to cover.”

Read more: http://tinyurl.com/kcx2y8t