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Last April, right near the parabolic top of the silver market, I made the following post:
Make preparations for a multi-month consolidation in silver and find something else to obsess over, else I will see to it that you will turn into a pile of ashes.
-Boyd “Silver Bones” Crowder, JakeGint’s evil cousin (Related to Boyd Crowder of Harlan County, Kentucky)
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However, despite silver’s nasty correction and consolidation to the point of being forgotten by all the except the most ardent of silver bugs, we never saw SLV come in danger of losing its primary 2010 breakout level. Hence, the call last April was for an intermediate-term correction/consolidation, rather than for a generational top.
Updating the current weekly chart below, you can see that SLV is playing catch-up to GLD as it breaks out from a ten-month falling channel within the context of a secular bull. What you are looking to see is the breakout hold, with perhaps some initial backing and filling but nothing too damaging, given the amount of carnage to complacent long that has already taken place since April.
In other words, Uncle Gint is going to keep accumulating wealth in real terms, probably just in time to bet big on the Derby in May.
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Which evil cousin?
I have several.
Most, even.
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LoL