SD Midweek Update: People got excited when silver “broke-out” yesterday and gold “surged”, but the excitement seems a little premature…
Editor’s Note: Just a friendly reminder that Mike and I will be live-streaming today at 12:00 p.m EST on our YouTube Channel. Additionally we will have regular posts and updates throughout the week, and we will have the Friday Wrap on Friday as usual. Finally, this post is going to be more of a market update and much shorter than the typical Midweek Update, in part because I spent a lot of time and effort putting together what I hope is a pretty decent rant about Thanksgiving Hypocrisy.
Thanks for your continued support and interest!
People sure were getting excited when silver “broke-out” yesterday and gold “surged”.
I wasn’t excited at all.
Because I don’t think we’ve seen the worst of it.
Again, it comes down to one very simple question: If the cartel can smash, then why would the cartel not smash?
I guess the more important question is, can they smash?
I think they can, and I think they will, before the week is over.
Gold just doesn’t look “oversold” enough for me:
I’d really like to see a nice flushing here because sometimes it’s best to just let it all out.
Besides, silver’s surge yesterday was on pitiful volume:
Are we really supposed to believe the cartel can’t simply drop a bomb or two on the silver “market” to induce the heavy selling?
The recent surge in the gold-to-silver ratio is fading:
I think we get a surge in the GSR before the week is over, however, if the technicals matter, it’s a good thing we’ve faded the last surge because we really don’t want to see a move above 87.81.
For several days now, I’ve been saying palladium is doing its own thing:
If palladium was the stock market, we would have surged to fresh, all-time highs and then some, but since palladium is not the stock market, all we see for now is palladium within striking distance.
Rejection at the 50-day moving average is not a good signal for the platinum bulls:
If we’re getting the flush-out I think we are getting this week, then we’ll be below the 200-day moving average very soon.
Crude oil is treading water above $58:
It’s starting to look like an upside surprise is in the making much like platinum’s August upside surprise.
Copper is still telling us the deflationary cycle is over:
Forget about “reduced industrial demand” during economic slowdowns because they’re way too much money sloshing around the world, and, in my opinion, very soon that money will seek out anything and everything real, including copper.
The Russell 2000 finally hit a new all-time record high:
Of course, the sad part about it would be that this is nothing more than dumb money rushing in at exactly the wrong time, which is exactly what dumb money always does.
But then again, is it really sad if we, as in the people who are not corrupt, evil insiders, all have access to the same information?
The VIX was under 12 at the time I grabbed this screenshot:
Under 10, anyone?
Yield on the 10-Year Note has done nothing for several days:
I will either be right or I will be wrong about what is about to happen to yield on the 10-Year Note, and If I’m right, it means yields should spike this week to shape the narrative of a move into risk assets (stocks) and a move out of the safe havens (gold & silver).
If I’m right about how this holiday week plays-out, we should see as spike in the dollar index:
Regardless, I’m quite sure the dollar is nerve wrecking for both the bulls and the bears right now.
Bottom line as we find ourselves here this beautiful Wednesday before Thanksgiving?
People got excited about the “price action” in gold and silver just yesterday.
Of course, I am not comfortable thinking the worst is behind us.
I think we’ve yet to see the worst of this latest beating.
If you’re a chart watcher, then grab some Tums.
‘Cause the charts should be fun to watch.
But they may not be easy to watch.
Much less easy to digest.
And if a buyer here?
There’s a reason.
That it’s called.
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.