Silver: No Squeeze In Sight

There are so many reasons why the silver squeeze is over; not the least of which is the constant bombardment of the supposed event in the financial press.

If the mainstream financial press is covering the topic (any topic) whatever the event, it’s over, irrelevant or an intentional miss-direction.

The little guy’s not going to put the big guys into a bind.

The big guys (the controlling interests) will just change the rules of the game as is being done with SLV.

Let’s move on.

Potential action in SLV is above. We’ve got hits on the right side of the chart indicating a potential trend has formed.

There’s already precedent for a trend change with the massive volume spike on February 1st.

Inverse fund ZSL (not advice, not a recommendation) is showing the same trend potential but in the opposite direction … up.

As always, anything can happen. For example, an earthquake (seismic activity picking up world-wide) could wipe out production at some major mine and affect the price.

The chart above, shows the current potential. A trend may have been formed. If SLV price posts a new daily low (below 24.93), we have additional confirmation.

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

Silver Short Squeeze, Over

Massive volume in SLV, points to significant reversal.

Not since the week of May 13th, 2011 has there been higher volume.

The week prior in 2011, was the highest volume ever, for SLV at 1.1-Bilion shares.

Those two weeks culminated in a crash over -31% and were just after SLV reached its all-time high.

Total down-draft for the three weeks combined (the top and two weeks following) was nearly -34%.

Will it be any different now?

Probably not.

At this point, it’s important to re-state, this site is following principals and techniques set down by three market masters of the early 1900s; Livermore, Wyckoff and Loeb.

Markets do not change. Using the techniques outlined by those early masters are still applicable today.

Arguably, the father of technical analysis was Wyckoff.

The terms “accumulation, distribution, support and resistance” originated from him.

His technical publications had the largest subscriber base in the States at the time; larger than all other publications combined.

At one point he got so successful, his buy or sell recommendations were beginning to move the markets all on their own. The year was 1918.

Instead of stroking his ego on how ‘his recommendations’ were affecting the markets, he saw it as a disservice to his clients.

In May of 1919, he discontinued his newsletter publication ‘The Trend Letter’. It had become so popular, it was impossible to provide recommendations without those same tips moving the market.

What a contrast to today.

Those attempting garner forces (the little guy) to move the markets, such as silver, will find out soon enough who’s in control … and it’s not them.

It’s unlikely silver is going higher any time soon. There could be some upward spasms as the crowded trade exhausts itself; it’s likely we’ve seen the SLV highs for quite some time.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

SLV Up 10%, Can it Hold?

The short answer is, probably not.

Is anyone looking at the technical condition? No, it’s all about ‘putting it to the man’.

In all of Wyckoff’s writings, he never once proposed the idea of taking the large controlling entities for a ride.

He was totally immersed in figuring out what those entities were trying to accomplish; then getting on the right side of the trade.

For all we know, the whole hedge fund blow-up, kabuki theater could have just been a sacrificial lamb (an inside job) targeting silver for a massive short opportunity.

How’s that for strategic thinking.

Right now, in the pre-market, SLV is right at new recovery highs.

The real question should be, ‘how long can the hype last?’

Can it finish the week at new highs and post a bearish divergence on the weekly MACD?

Price action itself will decide. What we do have, is risk being removed on the short side.

Inverse fund ZSL is down a stiff -21%. If there is a short, that’s the one to watch (not advice, not a recommendation).

It’s important to note, GLD is nowhere near a +10% move. It’s a non-confirmation on silver.

Separately, the overall markets are trading higher but appear to be under their prior session (daily) highs … indicating a short position in those markets is still viable.

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.