Loading ...It’s quite simple.
Look at the relationship between the price of GDX and it’s open interest put / call ratio displayed in my previous post.
You should see the positive correlation. (which is why this possible breakout should fail unless the call buyers sell quickly – unlikely)
That necessarily means that you have a ‘causal relationship’.
That means the computers controlling prices of the underlying security, in this case GDX, are controlled by the open interest put / call ratio. (open interest ratios are the true reflection of sentiment because the players are holding their positions overnight showing conviction – volume based ratios don’t matter)
There is no arguing this point – if you understand anything.
Of course there are many in the newsletter/blogger business that will never admit or talk about this because they cater to the greedy bastards that trade the derivatives.
They cannot justify the fees for their services if they don’t play the game.
This is where the term ‘clusterfuck’ comes from — circumstances such as this.
THIS IS WHY I DO NOT DO THIS.
This is why precious metals remain locked down and shit on a stick goes to the moon…because speculators shorting and buying puts on this crap (tech stocks, cryptos, banks, etc.) are stuck in the perpetual short squeeze we have been enjoying (heavy on the sarcasm) since 2009.
There you go.