by Avi Gilburt
After 4 years of getting trounced, bulls have learned to be quite skeptical and gun shy. This is what a larger degree correction does to the market psyche, as it builds the “wall of worry” for the next bull phase.
In fact, many of the staunchest of bulls over the last 4 years were caught looking lower when the metals bottomed, and, now, have been fighting the current rally, as they are looking for the metals to pullback. I have seen many analysts and market participants note that the metals have “gone too far too fast.” Many have been convinced a pullback is just around the corner since the market is “overbought.” More have been expecting a correction for several months due to the heavily bearish COT reports. And, the latest expectation I heard is that the complex will certainly drop now since the CME has raised margin requirements. It seems everyone is looking for a pullback and everyone has their reasons why it must happen. But, the metals do not often provide investors what they want or expect.