Lot of questions about the current price action.
What does it mean?
In a nutshell JPM have taken a back seat and let the price run its natural course for a time.
(In fact the two super spikes we've seen today and Friday suggest to me that somebody is deliberately gunning the price for (say?) $50 - or above).
Now, we know that JPM could blow the price to the moon literally in an instant if they wanted to, so this steady escalation suggests they are still covering their shorts. But they are also accumulating enormous leveraged losses as the price rises and until we see evidence of this loss in their bottom line we can reasonably assume that Benny and the Feds are giving them some loose change to paper over their losses for now.
(It is certainly easier to print money than pull the silver solder out of the printing press circuit boards!)
But JPM are smart - and they never do anything for no reason, so is there something else going on here?
Probably! The silver price is now beginning to move into an unsustainable region. The price is 'high' but it is 'weak' (It's now a long way from the supporting cover of it's moving averages) so the price is quite vulnerable to a slap down now.
At some point JPM *WILL* hit the brakes and the price will fall a few dollars in short order. Most of you know the usual patterns of the takedowns. The price is unlikely to retreat more than 4 or 5 dollars. This recent rise has generated a LOT of algorithmic interest so even a drop to last weeks will be seen as a bargain! (Go figure!)
So what should you do?
It's now a mind game. Don't take the current price too 'seriously'. It's like wet cement - it looks nice but it won't hold much weight until it's been tested and shaken down by the usual slap down and recovery. If you are counting on your stack for an upcoming bill or purchase, take about 20% off your expected selling price for now.
Should you sell? No. I certainly don't recommend selling right now. Ride the correction down and trust that it will pop up again in a reasonable period of time. I'm not calling a top here the price may still rise much higher. If you get out now you 'might' avoid a temporary 12% correction but you might just as easily lose a further 20% gain.
Should you keep buying? Yes - for the same reasons as above. The next correction may only come back to today's price anyway! So 'deal with' the new prices and keep buying just remember that a (temporary!) drop is even more likely now and it WILL come.
This is what I mean by a mind game; new buyers must now be a bit more patient, and steel themselves for a bumpier ride. Always remember - the price WILL eventually recover! We are just moving into a more volatile price region.
SPOT: USD $48.74 and dropping.
