Is this the time to buy Silver? Can the silver market really be short squeezed? Will Silver be able to break out of this double top formation? - "There's a time and place for everything, but not now."
Looking at the long term trend in Silver. Silver is at an eight year high. I don't know how a short squeeze can be sustained at these levels. Silver's value comes from it being an investment hedge not a potential short squeeze. I love silver and am looking to start accumulating at 20 and hoping it goes down to 15. If you are investing in silver don't buy the paper version buy physical or something like PSLV. However, I think precious metals will suffer in the fore coming liquidity crisis. Looking back at every crash, metals usually started declining before stocks, crashed with stocks and rallied before stocks rallied. The mania caused in Silver in January caused it to exhibit some weird behaviors. Silver peaked on August 7th around the same time Gold peaked. Gold and Silver usually have very similar price movement (there are many pairs trading algorithms built around this relationship). After peaking in August 7th it started trending downwards. Then the silver craze came about and people bought into silver hoping for the same outcome as GME. But, Silver is a monster in and of itself. This metal has been used for thousands of year, you don't wake up one day and say lets squeeze silver. I believe that if this Silver hype did not occur we would of seen it move lower. Anyways, When Silver was climbing the price ladder on the first days of February it failed to break the high set in August - broadcasting an important signal to the markets. It represented a failed move. If we were starting a new impulse move higher we should have broken the high of the previous impulse move instead of finding resistance at the previous top (reasoning behind a double top). Silver can still break out of this larger rectangle pattern but its chances are becoming grim. I am more confident that we see Silver start reversing downward. The impending strength of the dollar also has not helped the Silver bull case. The Dollar rally also, has not even really started yet. When the dollar actually starts gaining strength all commodities will suffer. US Steel (X) has already started reversing, FCX, agriculture and energy look like it may too. If you look at the correlation comparison for Silver and DXY; it shows that they rarely move together. We are approaching a very crucial moment for all markets. Markets are reaching key inflection points because, the dollar is threatening a move up.
Targets: 24 -> 22 -> 20 -> 17 -> 15
Looking at the long term trend in Silver. Silver is at an eight year high. I don't know how a short squeeze can be sustained at these levels. Silver's value comes from it being an investment hedge not a potential short squeeze. I love silver and am looking to start accumulating at 20 and hoping it goes down to 15. If you are investing in silver don't buy the paper version buy physical or something like PSLV. However, I think precious metals will suffer in the fore coming liquidity crisis. Looking back at every crash, metals usually started declining before stocks, crashed with stocks and rallied before stocks rallied. The mania caused in Silver in January caused it to exhibit some weird behaviors. Silver peaked on August 7th around the same time Gold peaked. Gold and Silver usually have very similar price movement (there are many pairs trading algorithms built around this relationship). After peaking in August 7th it started trending downwards. Then the silver craze came about and people bought into silver hoping for the same outcome as GME. But, Silver is a monster in and of itself. This metal has been used for thousands of year, you don't wake up one day and say lets squeeze silver. I believe that if this Silver hype did not occur we would of seen it move lower. Anyways, When Silver was climbing the price ladder on the first days of February it failed to break the high set in August - broadcasting an important signal to the markets. It represented a failed move. If we were starting a new impulse move higher we should have broken the high of the previous impulse move instead of finding resistance at the previous top (reasoning behind a double top). Silver can still break out of this larger rectangle pattern but its chances are becoming grim. I am more confident that we see Silver start reversing downward. The impending strength of the dollar also has not helped the Silver bull case. The Dollar rally also, has not even really started yet. When the dollar actually starts gaining strength all commodities will suffer. US Steel (X) has already started reversing, FCX, agriculture and energy look like it may too. If you look at the correlation comparison for Silver and DXY; it shows that they rarely move together. We are approaching a very crucial moment for all markets. Markets are reaching key inflection points because, the dollar is threatening a move up.
Targets: 24 -> 22 -> 20 -> 17 -> 15
コメント:
In our current conditions I can't imagine a person going out and buying gold/silver. once u have that gold/silver u can't do anything with it. It just sits there. of course it holds value nicely but, you can't buy food, clothes, housing, etc with it.
コメント:
Closed some short positions at +80%. Profits will be going to WWF.
