An Interesting Article

In yesterday's post I mentioned that I wouldn't be at all surprised to see some sort of correction in the near term on silver.  The article in the link below does a much better job of articulating this same theory.  The author has also done some analysis to back this up. 


http://news.silverseek.com/Zealllc/1299863417.php

Does this mean that we are definitely headed for a correction?  Nope.  And if you want a good example, take the massive rallies in the S&P 500 that we've seen over the past few years as proof that a bull can keep churning higher much longer than anyone might believe possible....yours truly included. 

So what's the deal - are we going to sell-off or keep rallying up?  Well if we knew for sure, we'd all be retired billionaires, wouldn't we?  As I penned yesterday, and as this other article emphasizes, silver has gone incredibly high in a very short amount of time, so a correction should be expected, if not down right welcomed, and a double-top right around the recent highs would be a very logical place for this to happen.  If it weren't for all of the recent and ongoing events in the world arena, I might be much more inclined to be an aggressive speculative seller at the $36.75 - $37 range described yesterday (speculative seller = shorting on the Comex or buying puts - not selling my physical silver), but it doesn't appear that things are quieting down much at all in the Middle East, and any additional negative press out of that region will likely take crude up another leg.  The precious metals seem to have been in lock-step with crude lately, and this relationship is something to respect.

At the end of the day, my closing comments in yesterday's post remain the most valid for anyone who is trading this volatile market.  No matter what your personal bias is - be nimble and don't over-leverage in either direction.  If your an investor - don't worry about the short term swings.  Long term, the fundamentals remain intact and we can expect to see silver much, much higher.  Just use the corrections as buying opportunities for more physical.