2.23.21 Silver Discussion of short squeeze and efforts a firm may take to thwart a short squeeze. There are traders/mentors such as Al Brooks who claimed that markets move due to the large money, not retail traders such as us, and that it takes the buying pressure of a large seller for a large buyer to short. In other words it's not you and me who move the markets. The reason I state this is that I frame my understanding of the market based on the "smart money"... Knowing that it takes a large supply of inventory to sell in order for a large buyer to buy. Al Brooks would go on to say that the markets don't even trade to our orders and that if we get a fill it is because there is big money on our side of the trade. The reason why I am bringing this up is because my analysis is always going to be simplistic if I think this is true, and that if there is smart money trying to short the silver market, the only way you can have a short squeeze is to have smart money on the other side of the trade going long. If J.P. Morgan is shorting silver and a short squeeze is generated on the silver market, that is because there's big money, smart money, buying into JP Morgan's selling. This is a generalization. When you and I trade this market and I am short and you are long, we are two fleas sitting on the back of different elephants.
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