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For buy and hold-type investors, today was a great day for closing out the quarter, however...

  • Friday, June 29, 2012, 4:37 PM ET
    For buy and hold-type investors, today was a great day for closing out the quarter, however speculators, by-and-large, got crushed. According to data from the CFTC, on net, speculators badly mis-positioned themselves for today's window dressing. For example: Traders cut their long positions in gold and silver, and boosted their copper shorts. But gold +3% and silver +3.3 % were both up huge today, and copper closed out +5%, killing the shorts.
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This news story has 6 comments:

  •  
    What buy & hold investors? Are there really any of those around anymore?
    29 Jun 2012, 04:41 PM Reply Like
  •  
    Who would have thought that Europeans would do something? Well, not something, but that's what they (and we) are calling it. Bad timing on the shorts, but correct. Just because Europe passed something doesn't revive demand for oil and metals, nor does it fix China (at least immediately). Lest we forget that numbers haven't necessarily been inspiring here at home...
    29 Jun 2012, 04:41 PM Reply Like
  •  
    Some of us were neutral (not short) going into this. I tend to trade from/to extended levels, and made money recently on /KC and nat gas plays, which had a great rebound from a relative low. In this type of market, it is best to book gains when you get them, and then put back on or establish new positions as the oscillations settle out. I doubt "buy-and-hold type investors" closed out positions, they usually stay long and then lose part of the gains in large swings. Did buy vol today, not convinced we're seeing a recession there yet......
    29 Jun 2012, 04:48 PM Reply Like
  •  
    Who will do the buying once short-sellers finally give up trying to outsmart these centrally planned markets?
    29 Jun 2012, 05:06 PM Reply Like
  •  
    There will always be plenty of short selling opptys and volatility, Mr. Galt.
    29 Jun 2012, 05:07 PM Reply Like
  •  
    White,

    Governments and CB's hate the shorts which is why it will be a much more volatile world from a trading point of view. We need shorts to stabilize markets but when markets can be so easily manipulated with headline risk, the value of the short position is always at risk to a far greater extent than historical experience.

    The volatility/risk of being short has been raised by the market manipulation which I believe means there will be fewer shorts over time and market risk overall will rise. Some people do not understand the importance of short-sellers in maintaining an orderly market.
    29 Jun 2012, 05:18 PM Reply Like
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