Don’t Look Now… it’s Silver Cher!
________________________________________________________
Today’s downstroke rode the same tidal wave out that had been building up and cresting these past weeks and days. Even I was surprised to see how much power that wave continued to exhibit all the way through this morning’s early peaks.
But you knew that momentum had to recede eventually, and SLW’s egregious heights over any semblance of “the mean” was as good an example as any:
EXK, our other junior silver darling, showed the same signs….
That should make for a nice entry… again. And although the silvers were the drama queens today, even noble ANV looked to have a little bearish candle hung on it today. Again, opportunity knocks:
And what, besides outsize momentum, caused these sharp rebounds today? Of course it was your favourite fiat currency, the almighty U.S. dollar, rebounding out of a seeming death spiral in the low $76 region. Know look at it:
This weekly chart gives the best perspective of all. The dollar is obviously rebounding somewhat, but the downtrend is still very much in play. In fact, I think the dollar will have a hard time getting past that 13-week EMA that’s been containing it for months, like a damsel in a tower.
I don’t believe that line will be crossed this time, either. Look for a pullback from the high $78-$79 region.
My best to you all, trimmers. Let the Cher be with you.
______________
If you enjoy the content at iBankCoin, please follow us on Twitter
this is why you guys are fucked
Chinese Playing Cards Factory
good luck
We would have a machine that does that. That’s the difference.
Not sure if you mean metal stocks or stocks in general, but regardless, the dollar will not be in revival for very long here.
___
Oh sorry, I meant stocks in general. I’m assuming metal stocks will trade inverse to the Dolla.
Metal stocks will be more likely to break the inverse correlation than the regular stocks.
__________
Jake, Thanks for all of the great calls during the great run. Since parabolic moves happen so infrequently, it’s nice to be able to take advantage of one. Regarding the Dollar, it will be interesting to see if stocks decouple for a year end run. That would surely drive the bears crazy.
Sorry, i’m on the road and my Crackberry just decided to put that last comment wherever the flu it felt like putting it.
___
How much of the sell off do you think was caused by the increase in margin rates?
How much of the sell off do you think was caused by the mysterious naked silver shorts?
rofl
One and the same.
In meetings all day, so I’ll be rare.
________
I’m pondering being allin on silver to try to catch jpm/hsbc unwinding. I’m seriously confused as to how to approach these daily moves in silver…..
Back in with 1/4 positions in SLW and EXK to maintain my core positions. Will add as we approach above mentioned pull back zones.
I’m wondering if the dollars already done.Today was a pretty good day.