Silver -- it's the story of the year so far. But it's one thing to be ranting about it and quite another to be trading it in public.
The manic ride of silver, continuing its recent slide today, could be an indication that there's trouble ahead for the stock market, says Todd Harrison, founder & CEO of Minyanville.com and author of the soon to be published The Other Side of Wall Street.
"There are a few key takeaways here," Harrison tells the Breakout Brotherhood. " First, volatility of this magnitude is not positive, and second, commodity volatility typically precedes volatility in stocks."
Of course, Harrison's call to short silver was done in plain view more two weeks ago in a Minyanville post; he's not claiming victory or a top in silver but rather that the poor man's gold simply looked to have gotten ahead of itself.
"Silver is an unintended consequence of the synthetic sweetener —- or whatever you call it —- that has been injected into this marketplace," Harrison says, adding that "commodities have never been a safe haven over the long term."
And so, in an environment with ''a little too much complacency'' and a rotating love/hate cycle of interpretation Harrison likens to ADD, this battle-worn veteran of trading says, "There's no shame in admitting it's hard out there right now" and that it's okay —- sometimes —- to just be on the sidelines.
"Watch and learn," he says, "because sometimes you can learn a lot just by watching."
Let us know what you think. Write to us at Breakoutcrew@yahoo.com, or comment below.
- unintended consequence
- stock market