AND IN THIS CORNER ......
Here is our contest for the Heavyweight Champion of the World. In one corner we have the undefeated, untied, unchallenged Gold Market vs the much weaker Silver Market.
You can see from this chart with Silver on top and Gold Underneath, how much Gold has outperformed Silver on the upside during this explosion. This is a graphic example of why I have been saying when I short here I short Silver, and any longs even though regrettably I have not done any recently, would be in the stronger Gold Market.
Notice how far below the prior highs Silver still is where Gold has blown through it's old highs by quite a bit. The reason for this if it were known and it is not, is irrelevant. All we need to know is that Silver is weaker. That does not mean we just go right out and sell and thankfully for me, even though I had a hiccup the other day in the Silver ETF, I have not shorted Silver in quite awhile. This is about to change potentially.
Also please note that the commercial short position is very close to what it was at the last highs with price well below. Even though selling this market would have been and still may be suicide, this has been a setup that historically has indicated a decline is imminent. Also notice the bullish sentiment and the arrows there showing what has happened during prior instances with the sentiment this bullish. We do have to note that the declines during the uptrend have been smaller when sentiment has been bullish than they were when it was bullish during a downtrend. This is to be expected and should be considered on any shorts being done here.
Now that all of this has been graphically shown, next is the daily chart with a possible pattern entry setting up.
At the bottom is a proprietary indicator I have been playing around with. Basically the pattern here is divergence that sets up after we get to a volatility expansion of it. There is a possible false breakout pattern here if we were to reverse the price right away where the arrow indicates. Also notice in the bottom indicator, that the blue line is still below the moving average of that line. This is particulary bearish from my studies of this.
I have no idea if this trade will work if it triggers, but it has what I have studied for 20 years lined up so I have to take this. I may look like the village idiot for doing so afterwards, while all the homemakers make a killing during this moonshot with the coins they bought!