How Will Silver’s (SLV) Recent Spike End? | Metals Mine

  • How Will Silver’s (SLV) Recent Spike End?

    From sunshineprofits.com

    When Joe Public buys shares during a wave of euphoria, they do it close to a market top or before the beginning of a decline. Looking at you, SLV! Silver rallied on Friday (Jan. 29), gold reversed its direction before the end of the day and so did miners, with the latter slightly underperforming gold. I wrote this before, and I’ll stress this once again today – the above is a perfectly bearish indication of an upcoming downturn in the precious metals market. This is not the first time it’s happening, and this combination of relative strengths worked reliably in the past. And we are not only just seeing that ... (full story)

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Trader#2A4F
Feb 1, 2021 8:35pm
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Markets are cyclical and with markets what goes up comes down and what comes down goes back up. But it is important to point out that we deal with aperiodic cyclicality in markets (or chaos in the mathematical sense) and as such there can be no "patterns" once we allow for the asymmetries that define such systems. For instance, everything is time displaced and nothing (absolutely nothing) ever repeats exactly in a chaotic system (just like with clouds, which are also chaotic systems, "patterns" can be imagined but only in the apophenic sense). I should also remind (as an example of the unreliability of "pattern" analysis), by pointing to your last analysis about the Gold "pattern" you saw in November repeating itself in January. As you will note, so far that has not happened and what looked like a similar formation has since transformed (exactly as with clouds) and Gold has turned up and headed for circa 1907 or higher at this time. A chaotic system such as the market will not fluctuate in a way that will enable extraordinary profits routinely and yes "patterns" are a way some try to simplify the extremely complex fluctuations we deal with as traders, but it is important to stress their unreliability and in fact their lack of basis in objective price analysis, i.e. in terms of what is known about complex dynamical systems such as the market.

The Crow (-_-)
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