Here we have the Silver market in what appears to be setting up for a decline. If you look at my indicator at the bottom, you will notice how when we hit the standard deviation bands on it, peaks and troughs occur. You can see the last 3 times on the down side we hit the band, a significant low was at hand. Now you can see we just hit it or very close on the high side, which should mean a significant high is here. Yesterday a prominent Hedge Fund manager advised everyone to exit the Gold market claiming a top is here. Well I guess that now means there are 3 of us who think that, Soros being the third member of the trio.
What I would hope for now is a move back up and a false breakout to a new high that fails. This would also create a divergence in the indicator below on top of the price extension that we already have had. That would make this a sell with both hands situation. Typically I never get my exact wishes, so I doubt that will happen. Nonetheless, this is a market along with Gold and Copper that I am watching closely here. They are just crashing today, so this market could just rollover big and not look back. Nowadays we get V tops and bottoms everywhere, where it used to be more of an exception than the rule. This is why you need to learn how to trade reversals, often you are not given a test once markets turn. We also saw that at the stock low last March. Everyone said that would not be a V bottom, so of course that is what it turned out to be.