Respect Kaplan very much, disagree with him on his Y2K view. On silver too far too fast, he may be right. Since the chart show gaps higher it almost ALWAYS means the gaps will be filled meaning a retracement down to 5.20 or so. However gaps can go on for quite a long time without being filled. Also an island reversal is very rare but did happen in th silver market after many years. This is where the commodity goes down in price from say 10 to 5-4.50 and stays there for a while then it gaps down to say 4 and eventually trades at 3.50 for quite a long time then one day it gaps up to 3.75 never to trade that low again ever. This did happen in th silver market it took years and my numbers are off, I am doing it from memory.
Right now I think silver will keep going until it hits 6 to 6.25 at which point there will be some kind of announcement (Gates buys silver!) or the regulators will step in and let us know how they will protect us form this silver market so no one gets hurt. Funny the regulators do not seem to like to step in the wheat, corn, soybean, lumber, oil, cotton, etc, markets, nearly as much as silver.
It is the one commodity, that the people have much more control over than the various governments of the world, with the possible exception of India. |
