Technical Gold Trader Gary Savage: “Big Players Use Panic Selling Events To Enter Billion Dollar Positions In Gold & Miners”
December 19, 2012 | By Tekoa Da Silva
**This interview was recorded on Monday, just before Tuesday’s “flash crash” in gold**
I had the great opportunity once again to speak with technical gold trader Gary Savage. Gary publishes the “Smart Money Tracker,” which is a daily market commentary and trading service which has outperformed most of the world’s hedge funds in 2011 and 2012.
Principle subjects discussed during the interview were gold and gold mining shares.
Starting off I asked Gary his thoughts on the recent and extreme sell-offs in the metals and miners. He said, “Big players will drive the market below a technical level, and that will trigger stops with the technical traders, so you’ll get a big panic selling event, and the big players use that in order to get into large positions. I think that’s what’s happened with GDX on Nov. 14th. and 15th. I think there was a big player or players that needed to move about $2 billion or $3 billion into the sector, and the only way to do that was to trigger a panic selling event. I did the math on it and it was almost $3 billion over that two day span…They broke the miners out of that bull flag to create a selling panic, and that allowed a couple big players to move a lot of money into the market.”
He further added that, “Big players, that’s how they have to get into and out of positions. You can’t just buy $2 billion worth of gold without having somebody willing to sell it, otherwise you’re going to move the market against you badly, and you’re going to get a bad fill…[and] If a big player like George Soros wants to put $3 billion to work in the sector, he’s either going to have to enter very slowly, or you’ve got to trigger some sort of a selling climax so that you can get that volume that you need to move that amount of capital into the market.”
When asked what gold investors need to keep in mind during these periods, Gary indicated that, “You have to do the opposite of what your emotions are telling you, and your emotions are telling you the miners are terrible stocks…but that’s when you have to buy. When nobody wants it.”
Additionally, Gary was kind of enough to share one of his long term charts on gold(which carries a $10k price target), to which he elaborated on during the interview.
(click to enlarge)
This was another outstanding interview with one of the world’s most successful gold traders, and is required listening for investors looking to profitably trade this gold bull market.
To listen to the interview, click the following link and/or save to to your desktop:
To learn more about Gary and The Smart Money Tracker visit: Smart Money Tracker
Enjoy the interview? Please support the site by joining our Free Mailing List and sharing this URL page link with friends, family, and your favorite chat forum.
Tekoa Da Silva,
Bull Market Thinking