The September Silver Crash
Well the deflationary scare has hurt the metals, with the FOMC's bearish language, the Italian downgrade, the downgrade of Well Fargo, Bank of America and Citigroup paper and the lackluster Operation Twist.
My timing was poor on a recent small physical purchase, but now it is time to DCA into this new bottom.
Silver really needs to hold this $32.50 level today at the close, we have breached both support levels at this point and I have slowly moved into the market, knowing if this doesn't hold another level towards $26 awaits us.
I feel the $32.50 will hold, but maybe this is wishful thinking, which I tend to avoid. With silver already at oversold levels before the crash, there must be a lot of longs covering their position to get us down to these levels so fast. The heat has been blamed on HF's, but I can't say this is the bulk of the move.
Silver is currently down 13% and gold down 5.5%.
Long term the path has been laid for further easing and we have seen what the world looks like with no juicy stimulus. The market is propped up on its heels and the lifeline is required at this point to avoid the deflationary collapse that awaits.
I can't imagine anyone wants to be long going into the weekend, but I am buying in at these levels and have my eyes at lower support, to catch all of this potential. Either way, this is move is overdone.
In the long run, just another volatile move that will shake out a lot of longs.
My timing was poor on a recent small physical purchase, but now it is time to DCA into this new bottom.
Silver really needs to hold this $32.50 level today at the close, we have breached both support levels at this point and I have slowly moved into the market, knowing if this doesn't hold another level towards $26 awaits us.
I feel the $32.50 will hold, but maybe this is wishful thinking, which I tend to avoid. With silver already at oversold levels before the crash, there must be a lot of longs covering their position to get us down to these levels so fast. The heat has been blamed on HF's, but I can't say this is the bulk of the move.
Silver is currently down 13% and gold down 5.5%.
Long term the path has been laid for further easing and we have seen what the world looks like with no juicy stimulus. The market is propped up on its heels and the lifeline is required at this point to avoid the deflationary collapse that awaits.
I can't imagine anyone wants to be long going into the weekend, but I am buying in at these levels and have my eyes at lower support, to catch all of this potential. Either way, this is move is overdone.
In the long run, just another volatile move that will shake out a lot of longs.
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