Markets are still closed, yet Silver futures are up +10% so far. $XAUXAG, $SLV, $SIL, $SILJ
Do you believe that all RH type retailers are having futures accounts and buying contracts?
Well, probably not.
The price increase are brokers who are hedging the spot market, bullion banks that are building short positions and miners that locking prices.
Silver is not a penny stock to "go to the moon" in a day. As I said it's already up +10%. This is huge for
the silver market.
There is not possible way for bullion banks to lose control on the derivatives side, because they simply can print as
many contracts as they like through their unlimited access to liquidity. We are talking about JP Morgan et al here. The only
way they can "lose" is though physical sales, that is coins and bars from dealers who have contracts that stand to deliver. If demand in physical increases, dealers will order more pushing hedgers to their limits, as bullion banks are historically always short the market.
There will be huge gaps today in everything related to silver and miners: SLV, SIL, SILJ. When market opens, possibly
the "silver squeeze" army will dive into calls to push the price up. Probs that silver will move meaningfully higher are few, but who knows? Never say never. I wish all my assumptions are wrong and goes to the moon. The purpose of this note is to make you think, use tight stop losses and be on alert that silver maybe will dive along with indices in case of a credit event. With VIX elevated and US High Yield CCC at the bottom demand zone as I've posted, we are probably due for a credit event near soon as liquidity dries.
The Silver / Gold ratio I've posted reached supply (resistance) zone already.
Silver's monthly chart is entering into supply zone a bit higher and it's right now at the NL of a giant IH&S with Price Objective around $49.50. Do you think that this area will be cleared that easy because of a retailers' like us short squeeze when hedgers are only -73K contracts short as per latest CFTC report and silver's sentiment index is entering optimistic area? Probably not again. Usually, moves like this, take place when sentiment is pessimistic and stops are taken for breakfast.
Price is already into supply zone of the quarterly time frame
Regarding miners and the watching list I've posted late December, for those who took any trade, I'll sell 50% into strength today, tight my SL's and trail the rest, pending today's Price Action. Silver looks like it's reaching the middle of the daily cycle and maybe will start correction either in price or time, especially if dollar clears 91.20, the NL area of the IH&S in the daily.
www.tradingview.com/u/pantheo/
Again, I wish I'm wrong and all goes well. Hourly chart looks constructive so far working on a bull flag.
Take care guys,
Markets will always be there
Cheers, all the best
P.
Do you believe that all RH type retailers are having futures accounts and buying contracts?
Well, probably not.
The price increase are brokers who are hedging the spot market, bullion banks that are building short positions and miners that locking prices.
Silver is not a penny stock to "go to the moon" in a day. As I said it's already up +10%. This is huge for
the silver market.
There is not possible way for bullion banks to lose control on the derivatives side, because they simply can print as
many contracts as they like through their unlimited access to liquidity. We are talking about JP Morgan et al here. The only
way they can "lose" is though physical sales, that is coins and bars from dealers who have contracts that stand to deliver. If demand in physical increases, dealers will order more pushing hedgers to their limits, as bullion banks are historically always short the market.
There will be huge gaps today in everything related to silver and miners: SLV, SIL, SILJ. When market opens, possibly
the "silver squeeze" army will dive into calls to push the price up. Probs that silver will move meaningfully higher are few, but who knows? Never say never. I wish all my assumptions are wrong and goes to the moon. The purpose of this note is to make you think, use tight stop losses and be on alert that silver maybe will dive along with indices in case of a credit event. With VIX elevated and US High Yield CCC at the bottom demand zone as I've posted, we are probably due for a credit event near soon as liquidity dries.
The Silver / Gold ratio I've posted reached supply (resistance) zone already.
Silver's monthly chart is entering into supply zone a bit higher and it's right now at the NL of a giant IH&S with Price Objective around $49.50. Do you think that this area will be cleared that easy because of a retailers' like us short squeeze when hedgers are only -73K contracts short as per latest CFTC report and silver's sentiment index is entering optimistic area? Probably not again. Usually, moves like this, take place when sentiment is pessimistic and stops are taken for breakfast.
Price is already into supply zone of the quarterly time frame
Regarding miners and the watching list I've posted late December, for those who took any trade, I'll sell 50% into strength today, tight my SL's and trail the rest, pending today's Price Action. Silver looks like it's reaching the middle of the daily cycle and maybe will start correction either in price or time, especially if dollar clears 91.20, the NL area of the IH&S in the daily.
www.tradingview.com/u/pantheo/
Again, I wish I'm wrong and all goes well. Hourly chart looks constructive so far working on a bull flag.
Take care guys,
Markets will always be there
Cheers, all the best
P.
