Quote from glassinc:
Hello, I have to say whether it's a breakout, or short covering doesn't matter. Price has broken through prior resistance and is going up. The supply demand balance has shifted to one of demand, that's what price is telling us right now, and it's all we need to know. Any positons or strategy need to be based upon the here and now, not what one hopes or fears, or wants to see happen.
Certainly there was, is, and will be some who shorted, or are still shorting having to buy at some point. There is also just buying going on. How long it'll last and where it ends, no one really knows. Forgive me if I receiving the wrong message concerning your statement. It appears you have some doubt as to what price is indicating. Is it because it's contrary to yours and others positions here, or is there another reason I may be missing? It is what it is, and that is what we need to realize and deal with accordingly.
This is exactly the reason why, which Optioncoach and others have stressed that Risk Management, and limiting the capital exposed to anyone position or strategy is CRUCIAL for staying in the markets for the long run.
May each of you here in a spread situation have planned accordingly, and executed it to avoid loss or minimize it.
Good Trading and God Bless!
Kelly
