Silver Exhaustion Alert

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Ross suggests a careful watch for a pullback on the metals.

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6 Comments for “Silver Exhaustion Alert”

  1. Ross, we appreciate your timing technology. You are the man!

  2. Housing prices have risen independently of the real estate sector, and mortgages are tranched into covered bonds as they were in Assent Backed Commercial Paper.

    Don’t forget the housing market can come off and has been pending for an extended period. This necessarily means low interest rates and a rising currency. One thing that eludes most are the Canadian banking stocks, which were at new all time highs.

  3. I listened to your 4/12/2011 interview on the Internet. My impression is that we are in a silver correction. After long time thinking I think:
    1. We are in uptrend channel till now Even if today ZSL had the highest volume since its first day;
    2. If $42 is the top, we need to go out of the current uptrend channel formed since February this year;
    3. A trading sell signal should be triggered by any of the trading systems, However, till today, no one gives us a sell signal.
    Thus I think we still have the chance to go up above $42.

    • The correction wasn’t very long! Silver has just gone to a new 31-year high on Thursday evening! I sometimes worry about this strong upside move, but we did have a nice $2 correction early this week, somewhat similar to the $2 correction in February when silver broke out decisively over $31.

  4. I was reading some old articles by Roland Watson who used to write on silver and he had a thing called the Silver Leverage Indicator or SLI. It is based on (or is in acuality) the rate of change of silver divided by the rate of change in gols (in percentage terms I guess). I have noticed that sometimes silver has been moving 3x as fast as gold in % terms when the AU:Ag price ratio was about 40 or 45:1, giving a 12-15:1 dollar price move gold:silver. However, I cannot find a reliable quantitative description of his indicator. but the silver: gold leverage has been very high recently, no doubt.

    Interestingly, on Eric King’s program weekly metals wrap last weekend, and he described a $2.87 weekly move in silver versus a $45 weekly move in gold. Interestingly, the ratio of the gold to silver move is 15.68:1 in $ terms, about the same as the classic Isaac Newton gold:silver ratio under the bimetallic standard and silver’s % move being more than twice that of gold, as has been the case for a while.

    I guess the Silver Leverage Indicator of Roland Watson would be analogous to the RSI on the silver:gold ratio, as silver rises much faster than gold, both the SLI and Ross’ RSI would go into high territory.

    Very interesting stuff.

  5. I just saw silver spot is above $42.005. This means we are still in the upstream channel. Ross, we are still far from exhaustion. I think that $47 is a realistic target, maybe $50. According to your experience or way of thinking we may get a brutal correction. Do you think this time can be different?

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