Silver
Since this is a technical analysis site, I presume most of the community makes their investment/trading decisions largely based on the charts and related technicals.(sentiment,money flow etc.) I may read about a new technology or story about a company, commodity etc. but always go right to the chart to see if it supports the narrative. After checking fundamentals and doing some basic research, if the chart is positive I look for entry points. With that introduction, my take has been since early August that gold and silver have been in a correction of their massive rallies and that the charts were showing there was more downside and time to go.(I have stated in a few posts and comments on others posts that around Thanksgiving is probably when the metals will be ready to resume rallying again) I believe it is nice to know why something is acting the way it does, but for me, although I enjoy reading and or discussing why something is trading the way it is, I don’t really care, because the price and price action is what matters and the charts give us that critical info. I would not be surprised if Silver trades down as far as it’s 200 day mvg. although it doesn’t have to get all the way down. It probably will be a combination of further decline and the mvg average rising between now and late November. I provided this somewhat winded description because I am linking below an article discussing Silver, the SLV ETF and why the author also believes the metals have more to go on the downside. He makes some interesting points and is even more long winded than I. His point about Silver’s huge rally, in historical context to percentages above and below it’s mvg average is interesting but I take exception with him categorizing the recent runup as being parabolic. It was a large percentage gain for the time period but given the smackdown immediately prior to the rally beginning and the length it lasted, I don’t consider it to have been parabolic. If I had, I would not be looking to load up again between now and late November, especially if Silver approaches it’s 200 day. http://www.321gold.com/editorials/hamilton/hamilton100220.html