Important Characteristic Of Major Market Trends
There are some basic tenets of major market moves that contribute to differentiating them from those that are just in trading ranges or drifting with no discernible trend. Established bull and or bear markets have at least, this one thing in common. They both try to conceal the primary trend, by use of violent, counter trend moves in an attempt to shake out as many investors as possible. In bull markets the corrections are fast and furious, to try and scare out as many as possible. In bear markets the rallies are spikes with outsized gains, to squeeze the shorts and make those not long believe they are missing out on a new bull market.(FOMO) The reason I am opining on this pretty basic concept, is I believe many are going to fall for this trap as it pertains to the current precious metals markets. While it is obvious to anyone who hasn’t been in a coma the last few years, gold and silver are in bull markets, with silver having disappointed at a number of times along the way (with the last few days being the most recent example). I have been seeing and hearing, both here and in the investment community at large, much commentary about different timeframes, wave counts, need to reach certain retracement levels etc. Many are going to be left behind because of such distractions. Yes, if you are day trading futures, those are critical. After just having the massive, albeit brief, violent selloff, especially for silver, the bull is doing what he does best. Trying to shakeoff as many investors as possible and keep them on the sidelines, when the next major leg higher takes place. I as much as anyone, enjoy anaylyzing the charts and technicals to discern likely support and resistance. Just don’t let it distract you from being on board, fully loaded and locked in, for this next leg in the precious metals bull market. It is likely to begin while many are looking for lower level entry points and further out timeframes and the speed and size of the moves higher, shocking!
Sure looks like thats whats happening Today