Looking for quite a decent stock market sell-off this well, charts looking very ominous... Where silver goes, we shall soon see if silver turns into flavour of the month or thrown out with everything else. If you are playing the paper market I hope you are well prepared.
Many have been looking at 4500 on the XJO (or for that matter the All Ords) as a key level. might have been another feint move to get above it a few days ago? I'm feeling a teensy bit complacent, I'd have buying targets galore if we had a real wash-out. Wouldn't like to be totally committed to the stock-market now. Marc Faber bearish medium term (6 mths or so) on the SP500 in the States, Richard Russell reckons a primary bear market since 2007. Silver - feeling no anxiety at all, but was wrong before
The Comex futures market has systemic entities that take part in a marketwide (dollar/euro) trend reversal. They won't leave silvers price while dumping all the rest lol. Look at their amount contracts on 27/11: 56792. The highest they had in last 5 years was 75000. The lowest they had in last 10 years was 12011 (on 26/06/2012) An average bottom is 20000. So they have 56792-20000=.36792*5000=183,960,000 ounces ready to dump. Who is gonna buy them so that the price holds? ETF's? The biggest one (SLV) dumped 10,212,822 ounces mid november, 3% of the total. I'm afraid that all those that stacked since september, will end up being the last ones with the silver at the high price. I don't see reasons for it to happen soon, though.
Yeh somethings going to happen... weird the AUD didnt have a spike down today when the interest rate cut was announced... Thats unusual.
Ahhh the old stock market. The XAO was 4,500 in July of 2010 and here were are 2.5 years later and its still at the same level. The All Ords topped out at 6,800 back in late 2007. The Dow Jones by comparison reached 13,700 as its highest and today is around 13,000. So, the US market is within 700 points or 5% of its all time high. The All Ords however at 4,500 is still 33% lower than its all time high. And when you think about it, which economy is stronger, the US or Australia? And yet the US market has nearly recovered to its pre crash level and the Australian market is still down 33%. Odd, very odd but thats the nature of the beast.
