What Happens To Gold And Silver Next? Look Out Below?

Montana, as another poster put earlier, it's hard to believe, but we had more buyers in the 30's than in the teens. It's an emotional ride, and you've gotta have the stomach for it. I don't think a lot of people do. We are so into the "what's hot" game that we "cut our losses", which sometimes make sense. It's all about the plan going in, how much pain you can take, and your exit strategy.
"Fail to plan, and you plan to fail" is the adage that comes to mind.

Yup7676: "Yeah Right!"
you don't short commodities? you don't take long positions? YOur statement ignores basic trader Psychology. Behind the charts are reasons. Its the "reasons" that can make the difference between a successful trader and serving fries

Yup7676: unless your the equivalent of a day trader sitting in your own home I just can't believe you, as to believe you would be incredibly naive. Yes what you are saying is repeated by 100s of traders I am sure all of them like you actually believe it. The psychological studies tell a very different story!! You may not even be conscious of the non-chart influences on your actions.

yup7676

yup7676,

I remember reading your posts a long time ago and remember thinking "this guys is nuts"...not that that part has changed entirely, but have found that I can agree with you on one point:




We don't find out about the REASON for the price action until LONG after the movement. The trade has to keep that in mind when doing his JOB. The REASON for the movement, especially if working on extremely short term movements, will only come later.

@Liverpool

As always, thank you very much for the words of encouragement and commendation, my sole goal here has been to help educate, to share what I know so that markets don't seem complex or a mystery.

I find that trading is very simple. However, where it gets murky is how we as humans make it complex. As humans we have emotions; emotions that run wild and can cause us to ignore or blinds us to what is simple and right in front of us.

As a trader I have learned the best possible recipe for success and to be in tune to the market is to have an open mind, do not have preset opinions in place and "listen" to the price action, allow it to "talk" to me. I also recognize that many times, despite what price is saying, there will be occasions where I can be wrong, therefore, no matter how I feel, I accept that I am wrong and continue to wait patiently as price will continue to leave more clues as to whether the time is ready for that move of importance.

It is by cultivating these traits that I have learned how markets work and that keeping things absolutely simple is what leads to ultimate success which in turn gives one the experience to say "yes I have seen this pattern before".

Again, if I Can share this with others and help them avoid making some mistake... that is a very nice reward. There is no need for someone to get burned, by say, buying every dip in silver. If I can get someones attention why it isn't a good time to do that, thats great. Others have made mistakes, there is no need for someone else to repeat the same mistake.

@MontanaCMR

well, here is the thing. Lets say the PMs digest these moves, time goes by, they move up, grind around, move past all the levels in price where there is overhead supply... and end up at all time highs. What happens there?

If silver and gold hit all time highs again, I will be buying gold and silver. I would also be a buyer of gold and silver if they break this downtrend, whenever that may be.

Am I changing my stance and flipping around just because when I say that? No

As a trend following trader, seeing all time highs, yearly highs, is a buy signal and I would put out a line to test whether its ready to go or not. So yes, I would be a buyer of gold if it broke 1,920.08 and silver at its all time highs. IF yearly highs rolled around I would also be a buyer.

By the fact that silver and gold would be at yearly highs would be telling us the trend was again in a strong uptrend and that higher prices would be coming as well, especially if we were hitting all time highs.

So yes, count me in as a buyer at all time highs or yearly highs

It may sound confusing, and even contradicting in a sense, but remember, its all about following the trend.

As was written many many many decades ago, no asset is too high to buy, and no asset is to low to sell. Obviously proper entry points are required and one excellent point to enter when buying is at yearly highs.

Yup,

As you know, markets are very difficult to predict, regardless of approach. Although I don't try to predict markets, I am involved with data mining, analytics, and business intelligence. Models are great looking at historical data, and can even learn to some extent (neural networks).

If the markets were easy to predict, we would all be swimming in money just following trends. Best of luck of luck to all of us with this hobby. Even if I just followed trends, I wouldn't quit my day job.

Just for Good Looks into the future.

Silver chart is US$15.40oz