….Having said this, the $ is at a resistance area short term. Gold is mainly weak now because of the Yen. This week should see a bottom in the Yen. Silver is quite oversold, and is nearing that first support area I talked about – $16.10….
The weak hands were at it once again – freaking out about silver and the Euro, right into their tradeable bottoms. We had a totally different view at the time, and laid it out in charts and in videos, about the opportunities on the long side, and did a recap lesson here. Sell stops create opportunities. I’ve been expounding upon this ever since I started writing in public. Why do people keep doing this to themselves? In December 2015 they were convinced gold was “crashing”; right before the election in November 2016 they fervently believed gold was going to the moon; and in December 2016 they were convinced bonds were crashing and the $ was going to the moon. Recently, the weak hands were convinced silver was breaking out at $18.50, but it was actually about to go into freefall. And below $16.10 the weak hands were sure manipulation meant continued freefall. We took the other side of all of those trades. Why? Because the weak hands always, always are on the wrong side at turning points. The weak hands basically are the definition of a turning point.
The weak hands focus on the outcome, like “OMG. Billionaire Eric Sprott said silver is going to $250, I have to buy it this second!”. And the weak hands also operate in the markets via emotions. They lazily look at a chart, and if it’s up, they’re bullish, and if it’s down, they’re bearish. And the weak hands also believe the higher a market is going, then the more bullish it is. So buying it, at the market, is a very wise, prudent, and risk-free maneuver. Well geez, everyone else is buying it, so “I want in on the action”. And the more upward slanted the price chart is, then the more excited the weak hands become. And then the more confident they get and then they throw their money right into the market. As the uptrend keeps going, and more weak hands jump aboard, then the more obnoxious and cocky they become. They ridicule and sneer at anyone who has the audacity to claim that their cruise ship is about to hit an iceberg. Because they look at their charts and all of their moving averages are pointing up. These charts look great when prices are in a sustained move higher. The moving averages all “say” buy, buy, buy. The support areas are “holding”, and the trendlines are slanting up, up, up. Who wouldn’t be confident? Thus they seek out the GURUS who tell them what they want to hear. And these GURUS gain fame and fortune without taking any risk themselves (thanks to the weak hands). The GURUS conjure up completely bogus, factless theories about horrific outcomes and crashes and mayhem, and they predict stratospheric prices for what the weak hands want to buy anyway. While at the same time, not saying a word about manipulation being the “reason” the market is headed higher. But certainly claiming a “commercial signal failure” is imminent. It’s been “imminent” since 2010. So the trend is getting shaky, it’s stalling, but the weak hands are obnoxiously claiming the market is “hanging in there”. And then, guess what? The weak hands will buy way too close to the highs, with all of their compatriots, and the market will selloff, like it always does. And then the cycle repeats as the selling begins, and the idiotic claims about manipulation come in.
And a reminder to all of the weak hands – the “manipulators” have never once forced anyone to buy a long position.