Bulls Bounce the Market - Posted by Coolhand

The bulls bounced the market Monday to start out the week on the positive side.

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The biggest takeaway I see here is that the 50 dma held (so far) on the S&P 500. That certainly doesn't mean the market is out of the woods; especially when we see headlines regarding short squeezes that are forcing the powers that be to shut down trading and change the rules to protect themselves (not you). One thing I am certain of is that we'll see more headlines like these down the road. And I don't think we'll be waiting long either.

And the silver short squeeze is more dangerous as the big banks are heavily short that metal. Physical metal is almost gone and that is very likely going to break the paper/physical price point (spot). Isn't it interesting how physical disappeared very quickly (over the weekend in many cases). If the banks lose control of the price of silver (I'm betting they will), their shorts are going to get infinitely expensive. How might this affect the market? It won't be a positive thing, that's for sure.

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Breadth flipped positive on today's positive action.

So, as I've described above, it's going to be interesting to see how things play out in the days/weeks ahead. Risk remains elevated in my opinion. I remain modestly bearish.