by beauanderos » Tue Nov 09, 2010 8:31 pm
I would surmise that in order to properly interpret technical analysis, one would need to correctly understand what is driving the high volume. Were all the buyers already in, so a top formed and rolled over with a few profit-takers inducing a waterfall event? I don't think so. Again, artificial means (increased margin) were employed to obtain a desired goal by those who wish to keep a cap on prices, and the sell-off induced by those unable to meet anticipated margin calls tomorrow produced a cascade of selling as stop-loss limits were triggered. When a market moves straight up or down, it is not because of natural phenomena. Yes, probably the moves upward were too rapid and the market needs time to consolidate and digest the gains. People were expecting a pullback because of the rapidity with which these previous gains occured. But you must remember, technical analysis depends on prior trends... and I would propose that all rules are off in the current environment of currency wars in a race to the bottom of depreciation. Do you think those in whose interest it is to short precious metals don't know how to read charts? Of course they do, and they understand the precise timing with which to introduce turmoil and volatility-induced uncertainty back into the markets to discourage participation and slow the rise. If they are having increased difficulty shorting without transparency, then they'll merely resort to some other trick like they did today. One thing we need to realize is... they are the enemy. They are extremely proficient at what they do, whether it be spreading propaganda, capping/slowing/reversing price rises, or generating phenomenal profits at the expense of longs and miners. Do not underestimate them. NEVER sell THEM short in what they might be able to accomplish. This is just one more reason to have physical as the core of your portfolio. Like Michael alludes to, when the physical shortage of silver finally rears it's head, then let's see what they attempt. One benefit of today? It induces holders of silver to liquidate and sell for "good prices" before the bottom falls out. The faster silver falls from weak hands into those holding for much higher prices the better, for it will accelerate the eventual parabolic ascent to multiples in price from where we are today. Just my long-winded humble opinion
The Hand of God moves Worlds
