| | | Re: SLV
Or this could simply be the case of a blow-off top.
Textbook definition: "A blow-off top is a chart pattern in investing, characterized by a rapid, parabolic surge in an asset's price and trading volume, followed immediately by a steep, fast decline. It typically indicates the climax of a speculative market, where euphoria pushes prices to unsustainable highs before panic selling takes over."
Exactly how the SLV chart has traced. Although, if this doesn't kill the risk appetite of speculators, or the overall market continues to show the sort of strength that supports continuing risk taking, it's possible SLV might begin to trek back up.
By the way, am I seeing this right--is SLV really down by 33% for the day, as of now? Wow. Usually not a problem for smart money--they probably kept most of the gains and were the earliest to leave. Algos have probably kicked in at this point and are in total dumping mode. At some point some of those algos will probably reverse and start buying (just when the retail investor has followed them into a sell, haha). Who the heck knows.
If the stock markets were rising even as precious metals are collapsing, you might conclude that it's a favorable response to an event that foretells economic and currency or monetary stability. But everything is falling today. So, if anything, that would imply an overwhelming risk-off sentiment associated with economic instability. However, I don't think any meaningful conclusions can be drawn from how markets behave on any single day. |
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