The Banking Cartel induced reaction in Silver off it's overnight high of $44 has potentialy set Silver up for another explosive move higher. Reverse Head & Shoulder consolidation of price between $44 and $42.50 puts Silver on launch pad at $43.70. Target $45.21.
Ever since the May 1st massacre and subsequent slapdowns of silver every time it attempted to make any gains, I've become gun shy of any silver increases lasting more than a day or two.
I keep waiting for the big waterfall. It sucks because a year ago I was all in gold - traded half into silver last September then traded the rest in January so went all in silver - as a result, I went from April jubilation to a May jaw drop.
I realize the fundamentals are there and all that, but I'm afraid silver's going to have to breach $50 AND STAY THERE for a while before I'll start to allow myself to believe it's finally started to take off.
Please don't use "explosive" with silver, it's the last thing a silver bug wants to hear. While every other asset is hitting the shitter, I think we all should be quite tickled we're up 140% YTD. Slow and steady wins the race and the EE is running out of ammo. We don't need anything to explode, we need to continue to choke the life out of shorts so we can be finally free to run.
Look at today - drops $3 without a problem at all.
What especially burns my biscuits is this last couple of weeks when gold catches wind, with few exceptions, silver basically sits around with its thumb up its ass, but when gold takes a hit, silver dumps even further.
People keep saying that silver is the better play in the long run, but I'm beginning to wonder.
I think PMs are the Afghanistan of the trading world: a graveyard for anyone who doesn't live there. I'm starting to suspect that keeping an eye on the PM market is a better way to gauge the overall market direction - particularly financial stocks. Bank of America and Goldman Sachs are in the crapper, but JP Morgan is up a couple of points today. I doubt that it'll break out of the overall downward trend though, so I'm keeping a careful eye on it, with an eye to buying some short-term puts.
Check out this 1 month chart: JP Morgan is a mirror image of the movement in SLV and GLD. And, BTW, the movement in SLV and GLD is very closely correlated, even though it often doesn't seem like it.