International Precious Metals (IPMCF) Message Board

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Gold/Mining/Energy : International Precious Metals (IPMCF)

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To: Richard Mazzarella who wrote (26697)	11/16/1997 4:16:00 PM
From: Bob Markley	Read Replies (1) of 35569

<< It's very clear that longs are too long and shorts are too short. Perfect chemistry for a market mess IMO. >> Richard, interesting insight. If I could add to that,... both longs & short have had to go through a major 'perception of reality' change in the last 24 hrs. The longs we overly optimistic in expectation of .25 opt Au. The shorts totally held the view that it was a scam & going to zero. Who is stronger??? Who is right??? The shorts must now view that they must cover & perhaps the best they can hope for is say $4,....IMO. The act of them covering will create demand. Any amount of solid buying by Institutions will a) stop the price from falling b) bring in new buyers & c) cause the shorts to cover. The institutions NOW have more power then the shorts & can trigger a short squeeze. All the Institutions have to do is take all that is offered for sale & supply the demand of the shorts at a much higher price (say $8-10). It's a 'no-brainer'. They can lower the average cost of their 'core' positions. The longs are sitting better then the shorts because there is a 'floor' on the price. Regards, Bob

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