SD Friday Wrap: It looks like silver’s run is only just getting started. Here are not one, not two, but several reasons why…
Editor’s Note: These charts were set-up before 1:00 p.m., and they do not include price action after that time.
Silver put in a nice, strong move this week.
Not many people were looking for silver to rally, but I was, and I imagine most people now think the rally has run its course.
I don’t think so, and believe me, if the cartel could have kept silver from making a run this week, they would have, but there are just too many factors right now that all point to higher silver prices.
For example, death is coming to the US Dollar Index:
That’s a nasty plunge today, and we’re about to see a death cross painted on the DXY’s daily chart, where the 50-day moving average falls below the 200-day moving average.
That’s bearish for the dollar.
Where have all the dollar bulls gone, anyway?
Because there is no denying the dollar is in a downtrend, and it looks like the bottom is about to fall out.
As the dollar index declines, especially if we get another drop or plunge here, this should help keep that bid under gold & silver, which means that even though the technicals could quickly become “extremely overbought”, gold & silver could continue with another leg-higher before any significant pullback.
Is there anything else that could be a reason for gold & silver to continue their charge higher?
The stock market:
The stock market has hit record high after record high, and there’s absolute euphoria right now, and yet silver is showing strength among all of this stock market elation.
Said differently, silver is rising along with the stock market, but the stock market is likely to have a scary drop at some point in the not too distant future, which should put a bid under silver, and, even if the stock market euphoria becomes more extreme with a continued market melt-up, sans the drop, it stands to reason that if we don’t get the drop because the market riggers don’t let it happen, then, at the very least, smart money will be looking to hedge those stock market gains by taking some profit and investing in silver before those stock market gains turn into stock market losses.
All things considered, I am expecting the experts and analysts to be talking about how gold & silver are overheated right now, and that the pullback is imminent, but just like those same experts and analysts missed this week’s rally, they’re likely to miss the next leg higher, in my opinion.
If I’m correct and we don’t get a pullback here, then silver likely makes a B-line for $20:
A continuance of this week’s move along with another leg higher would, at that point, likely be followed by the pullback, but picture this if you will – we’d be staring at a cup-n-handle pattern painted on the chart!
Granted, it would be one ugly cup, like those clay cups kids make in junior high school art class, but a cup-n-handle pattern no less, and that would further add fuel to silver’s fire.
In my opinion, the short-term outlook for silver is still bullish.
First things first, however, and one of the first things is the need to kiss 80 on the gold-to-silver ratio goodbye:
That could happen next week, but if it doesn’t, it’s unlikely to drag on past January of 2020.
Gold has reclaimed $1500:
Gold is looking strong here, and that’s also a decisive break-out move this week!
Platinum is looking really nice in the short-term:
Just this week we’ve put in a second higher-low and a third-higher high.
Palladium is working through what is likely to be a brief and shallow pullback:
I do not see a bear flag on palladium’s daily chart, but rather, I see a bounce off of the 50-day moving average, and by such a strong bounce, I’d be looking to revisit the major support line very soon, but I don’t think the bottom falls out.
I say that, in part, because it seems pretty clear to me that the commodities, in general, have bottomed.
Check out crude oil maintaining above $60:
It looks like were about to start 2020 with the price for a barrel of oil over 33% higher than when we began 2019.
I have been calling for higher crude oil prices for some time, and I especially think there will be a lot of pain coming to the pump in the form of higher gas prices.
And why is that?
So that the Deep State Globalists can push America past its tipping-point, just in time for the 2020 election, of course.
Higher crude oil prices also translate into higher silver prices as it takes a lot of oil to get real, physical silver from mine to market.
Is it just me, or does it look like the fundamentals are starting to exert themselves into the market again?
Copper may trade sideways as the markets play catch-up to reality:
Because the reality is that the dollar is in decline, paper assets are overvalued, and commodities price inflation is here.
Of course, traders and investors haven’t a care in the world right now:
Which means if you’re the cartel, now is the perfect time to bring down the “market”.
Bringing down the stock market would also help bring down interest rates:
Because traders and investors will (wrongly) seek out the “safety” of US bonds, which bids up the prices of bonds, and as bond prices rise, yields fall.
In other words, the US Government needs lower interest rates in order to service the debt, and a stock market crash would gets rates down, and it would get them down pretty darn quick!
I want to end this week’s wrap with something that has been bothering me.
Yesterday, President Trump Tweeted this:
Russia, Syria, and Iran are killing, or on their way to killing, thousands of innocent civilians in Idlib Province. Don’t do it! Turkey is working hard to stop this carnage.
— Donald J. Trump (@realDonaldTrump) December 26, 2019
That Tweet got little attention in the mainstream media, and it also got very little attention in the “alternative” media, but the significance of that Tweet cannot be understated.
Well, remember that it was in April of 2018 when President Trump launched a missile strike against Syria:
Notice, from right there on WhiteHouse.gov, the very same words of “innocent civilians”, but with President Trump’s Tweet from yesterday, December 26th, 2019, the President wasn’t talking about dozens, for he was talking about thousands.
OK, “Hey Half Dollar, you don’t get it man, President Donald J. Trump, the best President ever, not just in the history of the United States, but in the history of the entire world, and also in the history of worlds yet to be discovered, only Tweeted that yesterday to appease the warmongering Deep State!”.
4-D chess, huh?
Just like launching all of those missiles in the Spring of 2018 was also 4-D chess to appease the Deep State?
Well, either it’s 4-D chess, or President Trump is A Deep State Globalist in Patriot’s Clothing, and he just signaled the commencement of a major geo-political event in the Middle East, or, at the very least, some sort of contingency plan for one.
Remember: Deep Sate and Deep State Globalists like to announce what they’re going to do ahead of time, and they like to switch it up a bit with various way of making their plans known, and if something is about to go down in the Middle East, yesterday’s signaling was especially interesting because it first began with typos:
That Trump Tweet was deleted, and about an hour later, we saw the Trump Tweet with the spelling and typos corrected.
Interestingly, the timing is near perfect, with everybody celebrating and toasting away the decade of (artificial) gains!
What is the bottom line as we find ourselves here on this beautiful last Friday of the last year of the decade?
I haven’t said this lately, but I think it’s appropriate as we move into what could be a historic weekend.
If you hit ’em, then hit ’em nice and hard with the shocker so that everybody’s dazed & confused.
I’m not talking about the Syrians, but anybody with a stake in the US markets or the dollar.
A major geo-political “event” in the Middle East could be that kind of shock-n-awe.
Especially while “market participants” are euphoric, celebrating their riches.
Imagine instantly switching from market euphoria to total market panic.
Kind of like this fish my turtle has not eaten, but rather has let live.
You see, our water turtle eats live fish, but every so often?
He lets one of them live, and they get complacent.
They swim around the turtle with nary a fear.
Little do they know the turtle’s got a plan.
Smirking like that Deep Stater Strzok.
Fattening-up the little feeder fish!
The feeder fish is oblivious.
Happy too, until one day.
To the fish’s surprise.
It’s quite the shock!
Being split in half.
Of tiny scales.
– Half Dollar
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.