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Relax, have a smoke with a glass of fine bourbon, over rocks. Yes, I realize that the price of silver was up almost 5% today, despite both U.S. and Canadian stock exchanges being closed for President’s Day and Family Day, respectively.
Yes, I realize that, were those markets open today, anyone holding AGQ would be running around, madcap-style, kissing their latest brokerage statements in adulatory dis-belief, handing out shiny new dimes to children and mendicants as is the right of all wealthy individuals.
But savvy AGQ veterans have seen this kind of thing before and so, rather than spending the night on the Best Buy website outfitting their newly excavated man-cave with 126″ laser-guided 240 mhz 1080dpi 3-d LED moon-scaped wall displays, they are instead hunkering down and preparing for a temporary blow off spike in the precious markets, which may join equity markets in a pull-back tomorrow, no matter what the U.S. dollar does.
I will likely wait unti 10 a.m. to do anything at all, which would include eating a number of samiches (sic), lightly salted, lightly peppered. As yesterday’s SLW illustration showed, I am expecting a run for that stock back to the old highs, and then a pullback, either at, or slightly higher than those levels. If we break old highs, I expect the pullback to be shallow, if we are turned before breaking to new highs, I expect we may find ourselves right back at Friday’s close when all is said and done.
You will find that if you watch these things over many years, you will get a sense for their trickery. One would think that in a relatively consistent bull market like we’ve had for the last ten years in PM’s, riding this trend would be relatively simple. Nothing could be farther from the truth. They are evil wood sprites, as a rule, and they take pleasure in your pain and indecision.
They really love leaving you behind as well. Yes, I am talking to you, PM skeptic. If you have been watching this blog for any amount of time, you have no doubt kicked yourself enough times to form a large callous on your own buttocks. Do not be chagrinned, I carry a similar leathery ass, and it’s simply the lot of all PM investors and traders. The wood sprites are simply too crafty to allow you to take every trade profitably.
That is why I have urged you to always “keep a core,” and trade around that nucleus like the best Fermi Level Physicist in the CalTech Senior Laboratory.
Tomorrow we shall observe with anticipation and trim like expert barbers if necessary. For now, we enjoy the anticipation… along with a finely rolled Dominican Cigar and only the best bourbon money can buy.
Best to you all.
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