I'm gonna do a quick video on silver this weekend. For whatever reason, I'm seeing a lot of analysts trying to call a top in metals and I don't understand why. I also see them trying to call a top in the stock market; not really understanding that either. Why is it that when something is making new highs, people want to try and call it a top? baffling to me. So, let me just go over this real quick. This intermediate degree rally broke out above this major resistance that had been in place for what three, three and a half years?
The problem was that it came very late in this intermediate cycle. And the rule is that breakouts that occur late in a cycle usually don't produce sustained moves. You need to break out that occurs early in a cycle to get a sustained move. If a normal cycle link, let's say is 20-25 weeks, and you get a breakout on week 17 where you're going to need some weeks for the declining phase of the cycle. And so there's just not enough time to get a sustained move, generally speaking. So, that was the problem right here with this breakout above $30; it came very late in the intermediate cycle.
Gary Savage is a 57-year-old retired entrepreneur living in Las Vegas. He has been investing in stocks and commodities for 15+ years. He is a self-made multi-millionaire and attributes his financial success to savvy investments made in owning/selling several businesses, real estate, and, more recently, the stock market. He is also an Olympic weightlifting champion, and world record holder. Gary’s stock market investment philosophy and success owes to an unusually disciplined and keen understanding of market cycles combined with cutting edge sentiment data which allows him to anticipate and articulate how larger trends are likely to unfold. His analysis is almost always in strong contrast to what the public is thinking – and, provocatively, several steps ahead of the crowd. Gary’s renown as a recognized trading/investment expert in the areas of precious metals, stock market, oil and currency markets is demonstrated by his numerous internationally published articles in these market areas. Gary publishes the Smart Money Tracker, a market newsletter available online by subscription only, and also the SMT free blog.
