Loading ...Why I Am Ecstatic!
Not only is this correction in gold and silver exactly what I expected, it is what I hoped for and what I(we) want! After the amazing run that was recently completed, breaking out and confirming both the more established gold bull market, and the more nascent silver bull market, this is the BEST case scenario. Given the length and magnitudes of the runs in both it is much preferred, from a technical analysis standpoint, that the first correction be either extremely sharp, or if shallow, extend for a longer period of time. I prefer sharp for two reasons. Get it out of the way so that once the optimum entry point has been identified, you not only take advantage of the much lower prices, but more importantly, sit back and let your positions run on autopilot. Enjoy the correction and hope it is extremely sharp. Get your buy list prepared and do your T/A for optimum buy points. Good hunting.
Yes.
Karl, you should have put a couple of extra sss’s on your Yessss! with an exclamation point, like Marv Albert.
I can’t evoke much enthusiasm. I didn’t predict it. I was just uncomfortable and saw it as a possibility. I try to make sure I have enough cash for expenses including some oddball expenses. I am not one of the really smart people who have lots of cash ready for buying more-more-more as I would like to do. Such people could give the exclamation points. I am merely somewhat content.
I see your GSV did not go down much earlier today at any rate. That is a good sign. One of the signs I look for — only a mildly to moderately reliable one, but not bad — is ones that don’t go down much in response to a knockdown in metals prices. I made a little money on your GSV weeks ago but unfortunately cannot afford to buy it back probably.
eyeballing the SILJ chart, could grind down to back test the larger H&S & 50 DMA around 13ish. Gary Savage seems to have called this correctly so far…He thinks Sept even Oct for a bottom.
G. savage thought gold would make a mini crash below current uptrend line—somewhere below $1900 currently, then rebound but fall short of making a new high and then grind lower for weeks to possibly retest the $1750 congestion zone maybe sometime in early October. He made that call before today, and given the roll that he’s been on, I have absolutely no reason to doubt him. He does think the next intermediate cycle low in gold will trigger a bubble phase. With the way mining stocks have behaved, I wonder if we are about to see another 2006-2008 in miners—where they were flat with gold but managed to go up in USD terms.
I am not jumping for joy as in a perfect world I would prefer a long sideways consolidation that lasts 12+ months (so that I don’t have to see paper gains get cut in half), but this is the nature of the beast and a large drop over the next 2 months could indeed spark a bubble.
That being said, if the bubble phase does not come, based on historical spikes it could take a year or more to break out again to new highs.
are you a subscriber to him? I know he puts out Youtubes for free here and there.
No, I used to be a sub back in the glory days of 2010-12. But you can get enough from his public posts to figure out more or less how he is positioned.
me too. If you recall, he really blew that top and screwed a lot of folks.
Yeah, his ego definitely gets the better of him eventually. But I do think he has generally very good instincts. One problem was he never used to set stops as long as we were in the timing band for an ICL. He said you would be selling at a bottom. Problem is, he assumed gold and silver were still in bull markets, where any and all timing mistakes are eventually overcome.