from King World News
On the heels of enormous purchases of physical gold from China and continued volatility in global markets, today King World News interviewed one of the savviest individuals in the business, 43-year market veteran Jeffrey Saut, who is Chief Investment Strategist for $360 billion Raymond James. Saut told KWN he has never seen anything like what we are currently witnessing in his 43 years in the business.
Saut: “this buying stampede was also preordained because it was kicked off by back-to-back 90% upside volume days. A 90% upside volume day is when 90% of the total upside and downside volume comes in on the upside, and back-to-back 90% upside days are pretty rare. This started on December 31st, followed by January 2nd.
The history of back-to-back 90% upside volume days since 1950 is that the S&P has been better by about 6.3% one month later 83% of the time. And better by 12.8% three months later 100% of the time, except for this year. So the string did break this year because we didn’t quite make 12.8% by the end of March, but we came real close.
So this is like nothing I’ve ever seen. I’ve been in this business almost 43 years, and I’ve never seen a buying stampede last 89 days, but this one sure as heck has.”
Eric King: “You are looking for a final push here. Can you talk about that and what it would mean for the shorts?”
Saut: “I think the shorts are panicking right now. I told an institutional account on Monday, ‘Pull up an S&P chart and look at that chart and tell me if you would rather be long or short?’ The obvious answer is you would rather be long, and yet there are more than 404 million shares short on the New York Stock Exchange and those shorts are feeling the pain. I think before this is over they will have to capitulate.
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