Silver Trader - he's back!
Longstanding clients will of course know the story of the epic run in Silver that this trader had with us between Sep 2009 and May 2010. There has been no better client trade in my 11 years here.
Interestingly he appeared back on the radar last week buying 4 tranches of Silver over the course of the week. Then came Friday’s Jackson Hole announcement and well, as the youngsters say,……..Boom!
I must say the chart looks pretty damn attractive and if PIMCO’s Bill Gross believes that the FED WILL ACT at their next meeting (today he said they will) then that’s good enough for me. Gold and Silver have been the biggest beneficiaries of the FED’s programs in the past. Can we dare to believe that Gold and Silver are destined for new highs?
1) Weekly long term chart of Silver. Multiyear triangle consolidation now broken. (Gold looks very much the same)
2) Daily chart. A closer look at Friday’s action. A technically gorgeous jump off the 10/20 day m.a. band (coincided with my short term model too…) after breaking, then retesting the break, of the mega triangle earlier in the week. Bollingers have splayed and will now make a nice channel higher.
The precious metals just look irresistible right now and are likely the only store of value as we approach what looks like a renewed, and somewhat co-ordinated, global central bank monetary easing campaign (read ECB, FED and probably China too over the next few weeks).
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