Unfortunately, the technical picture has turned darker in the short run. The wallstreetbets crowd bullish raid on silver hasn’t meant much for the mining sector either.
Here’s a 2 hour bar chart again. If the oscillators turn up from this level, we could see another yooge upleg. The level to watch is 3835.
I give you a 2 hour bar chart for perspective. This is unquestionably, absitively, posolutely, the top of this move. I mean. You can tell. Right?
Unfortunately, the technical picture has turned darker in the short run. The wallstreetbets crowd bullish raid on silver hasn’t meant much for the mining sector…
While this looks like a top, and the price has come down from 500 to 171, two longer moving averages are still trending upward.
The problem for HODLers is that the first MA is at 117, and the second is at 57.
As I explained here, we’re in a liquidity shortage, but one that will be lessened over the rest of this month.
As liquidity ebbs and flows, we’ll see wild volatility changes over the next 3-6 months.
This morning, it’s to the upside, but …
There were lots of sell signals last week, but this isn’t the big one. Yet. We just need to be prepared for it.
In the mid month QE update, I concluded the intro summary with this warning:
1/16/21 At this point, it seems like we are on the edge of the precipice. The risks are enormous. At the very least, I don’t see the likelihood of significant upside for either stocks or bonds.
Likewise, this could very easily go south in a big way. The Fed would need to act. Would it be too late? Would the market even respond?
Today is Fed Circus. The elephant parade.
What can we learn from this lesson in financial zoology?
I’ve added one new mining pick to swing while we all wait for gold to start moving again.