November 29, 2017
The “safe haven” analysts have been touting forever…
As I have been writing for a while, during the past few years, Wall Street’s brilliant analysts have been steadily touting the upside in Gold and Silver, presenting the precious metals as a “safe haven” against their endlessly wrong-way opinion that the economy and stock markets were facing imminent major setbacks.
Quite simply, with Silver now nearing new 18 month lows…and with all those geniuses STILL bullish Gold and Silver…it looks very much to me like a classic commodity collapse is about to occur. I have easily seen it 100’s of times, where a VERY popular and “logical” story sucks more and more people into an idea…then the story loses its “validity” (or never had any)…and we then see a massive liquidation where all of those former buyers become forced (losing money) sellers, the result being, again, a CLASSIC commodity market STRAIGHT DOWN sort of move.
Korea is now launching ICBM’s…and Gold and Silver are relatively sharply lower today?
This market looks like it is sitting on a cliff, and as can be noted on the chart below, probably 99% of the people who have bought this market during the past 18 months are ALREADY holding losing positions…And in my opinion, definitely about to start losing more…with the result being, I believe, some degree of a selling “avalanche” that could easily take the market down to $14.00.
I LOVE this first chart. Nothing is absolute in this business but this is pretty much the highest percentage situation I know…Big sideways move, a “descending triangle”, and a flat line series of lows…which I definitively see as a “cliff.”
And just to reinforce my observation that a $2-$3 move is NOT a big deal in this market…Here is a “head count” of Silver’s moves going back a few years…
So with one final observation…that Silver has spent the last month uncharacteristically trading sideways…I think the odds are sky high that a big swing is about to take place…And here is what I am doing with it.
Give me a call if you think this makes sense…I might be dead, dead wrong but I really do see this as a blockbuster potential trade…and there are several different ways to do it.
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The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: Silver