Silver (SLV) – Daily
Talk about your “calm before the storm”…a one day tsunami for most sectors, including pms. But, I’m not ready to pull the plug on my core holdings just yet. In fact, I actually hope G&S return to test the December lows so that I can really back up the freaking truck. You have to have that attitude, and most important – that ability – if you are going to survive trading the pm sector, especially on days like today.
In the meantime, trading is always about making adjustments on the fly – re-evaluating, and reconsidering the current environment. With this in mind, it is possible that the worst of the present “pullback” is already over, if the H&S formation proposed below turns out to be valid…
Of course, there are still many lower range gaps that will fill if the December low is indeed tested – so keep some powder dry! 🙂
I don´t get it at all how the market worked today.
stocks plunging hard, the 10 and 30 year note broked the trendline that comes from 40 years ago (inflation supposed to come, bubbles bursting also). So… pm´s plunge -.-
Everything was rising because the dollar was falling….today that trade reversed
every dog has its day. the USD chart indicators are beyond “oversold” as price has moved ahead of time, but overall the price action still looks pretty bearish…so I wouldn’t say the trade has “reversed”, not yet anyway!
http://stockcharts.com/h-sc/ui?s=UUP&p=D&yr=2&mn=0&dy=0&id=p44871534384&a=412538912
you’re right Cervantes – today’s job and wage numbers indicate inflationary pressure is on the way, which the market incorrectly interprets as dollar positive, and therefore pm negative, because the Fed will be forced to raise rates at a faster pace. but the reactionary Fed is already way behind the inflation curve, by its own actions, and “inaction” – and when the market finally figures that out, its our job to be in position.
Thanks, nice to see a positive spin on a rough day
lol! well – i don’t like to think of my analysis as “spin”…but on a day like today i will just say yw!