I'm trying to search the charts for clues and it is the most confusing I've ever seen them.
Add to this the dollar goes up, gold and silver go down.
The goes down, gold and silver go down.
Something different is happening and I'm not sure what it is.
At this point I'm going to put faith in what I saw the last 3 days. Through Morgan Stanley someone bought 20 Million dollars worth, Goldman bought 11 million, Citi 8 milion and there was another that bought 4 million of SLW. I know these are relatively small amounts but using a ratio that the max a fund manager will usually alot to a equity is between 1-2%, then that means a $2 billion dollar fund, $1 billion dollar fund and a few 800 million dollar funds saw "something" that made them all want to get on slw here. Don't see any major put protection to hedge either but I haven't looked at the US side.
Risk management says i have to lighten up at the open. One model that I have gives silver at $38.05.
My brain is getting in the way of data. For the paper gold and silver market to take down the physical market ESPECIALLY now where Indian and Chinese demand is the strongest all year, is causing me to be reluctant on pulling the trigger.
I think that Ackman call on the HK$, a proxy for the yuan /renminbi is a dollar short call. However even though he only put in small amounts on the trade, a lot of people will be looking to enter that trade and it "seems dollar negative" That has to be on the side of commodities, doesn't it?
Hey Chem, thanks for your perspective on the silver and gold front. Overall the market in general has been very erratic. I would think that the run on gold is helping to lift silver up as a lower cost alternative. Once the worlds troubles turn the corner, I expect the fear will ebb and the luster in gold will fade and silver will tarnish. Will be interesting to see how far down gold will drop at that time. There is actually a push to reopen a mine in CA to take advantage of the current price levels.