Google site search Follow readtheticker on LindedIn YouTube StockTwits Follow readtheticker on Twitter
Blog ReLoad |Titles List |Media Only |Media Titles List |Market News |RSS RSS |ATOM Atom |FEEDBURNER FeedBurner|Email Delivery |Mobile
Created on: 9/25/2021 3:20:38 PM   Last Update: 9/25/2021 4:18:55 PM Posted by: RTT
1 POST Silver during periods of Industrial Inflation
silver-during-periods-of-industrial-inflationWhen industrial inflation is hotter than consumer inflation silver does well.

Previous Post: Silver, after the FED said taper talk is a long way off

In the chart below we see the relationship between silver and the yield curve and the Producer Price Inflation. 

The yield curve is the US 30 yr interest rate less the Fed Funds interest rate (blue line). When the blue line is high a steep yield curve is present, and when it is low a flat yield curve is present. A steep yield curve is when longer term rates are higher than short term rates vica versa for a flat yield curve.

A steep yield curve is when the long term rates are higher than the short term rates, suggesting investors are not selling risk on assets and buying safe bonds, this is a healthy risk on environment. A flat yield curve is a period of economic concern as investors are selling risk on assets and buying safe bonds, this is when the blue line is falling and if below zero it may lead to a recession. Silver price tends to suffers during recessions.

Economic recovery is when the blue line moves from up from zero, this recovery leads to increased industrial and investor demand for silver. 


POINT: Yield curve recovery leads silver price recover.



The next indicator (red line) is the industrial producer price inflation ratio to the consumer price inflation, or PPI divided by CPI, or business versus the consumer. If during a period of yield curve recovery we also have hot producer price inflation the silver price recovery is likely to be more aggressive. 

Higher inflation arrives during periods of abundant money supply while suffering market constraints (or shortages). There is abundant money around (after FED printing) and COVID19 has disrupted supply chains resulting in shortages. High demand for items in short supply creates inflation.

Currently 2021 PPI is red hot versus CPI and if this persist like the periods of 1973 to 1982 and 2006 to 2014 (ex 2008 shock) silver will likely see higher prices.


POINT: Hot industrial price inflation will support higher silver prices. 





Click for popup. Clear your browser cache if image is not showing.
Silver 1




The chart below shows Gann Angles drawn from zero (see more via our previous post), these are good for price pull back analysis. They currently show an ideal place for the bulls to buy back in at a great price.


Click for popup. Clear your browser cache if image is not showing.
Silver Gann






Divider




NOTE: Posts here are the lite version, more depth on each subject can be found via our RTT Plus membership.

Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Angles, Cycles, Wyckoff and Ney logic is the best way to ride the change, after all these methods have been used successfully for 70+ years. This post is a delayed and small sample of what is avaliable to members. Sign up to enjoy the full service.


NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net

Investing Quote...

.."At long as a stock is acting right, and the market is right, do not be in a hurry to take profits"..

Jesse Livermore Trading Rule


.."To cause high prices, all the Fed will do will be to lower the re discount rate..., producing an expansion of credit and a rising stock market; then when, business men are adjusted to these conditions, it can check, prosperity in mid career by arbitrarily raising the rate of interest. It can cause the pendulum of a rising and falling market to swing gently back and forth by slight changes in the discount rate, or cause violent fluctuations by a greater rate variation and in either case it will possess inside information as to financial conditions and advance knowledge of the coming change, either up or down. This is the most dangerous advantage ever placed in the hands of a special privilege class by any Government that ever existed. The are private, conducted for the purpose of obtaining the greatest possible profits from the use of other people's money. They know in advance when to create panics to their advantage, and when to stop panic."...

Charles August Lindbergh Snr

..“It is much harder to sell stocks correctly than to buy them correctly.” Because of the emotional aspect of trading, if a “stock went up, the average investor would hold because he wants more gains – he’s exhibiting greed. If the stock declines, he also holds on and hopes the stock will come back so he can at least sell and break even – he’s hoping against hope”..

Bernard Baruch


.."The first rule is not to lose. The second rule is not to forget the first rule"

Warren Buffett


Novice Traders trade 5 to 10 times too big. They are taking 5 to 10% risks on a trade they should be taking 1 to 2 percent risks.

Bruce Kovner




         >> Print or PopOut or Pdf .
         >> Go Back

We at readtheticker.com hold the view that a mix of stock chart technical analysis, Richard Wyckoff, William Gann and Jim Hurst methods plus market fundamentals allows the investor to formulate a very sound market opinion. These attributes are mutually inclusive and must be weighted equally before investing or trading in any Stock, ETF, Currency, Bond, Commodity, CFD or Mutual Fund



Search Blog Titles:
Search Blog for Text:
Search Blog for Ticker Symbol:

Or 'Click Me' to search this site with Google
What works in the market.
Wyckoff price road map.
Which time frame works best.

Pages
1. Blog Performance Review
2. List of the best blog posts

MostRecent
Price and Volume Swing Analysis on Bitcoin and Silver
Gold getting ready to move
RTT browsing latest..
Silver during periods of Industrial Inflation
China, EverGrand, Gold, Silver (RTT Plus)

Ney(1)
Crypto Currency(18)
Central Banks(8)
Crisis Watch(9)
Wyckoff(2)
Cycles(3)
Gann(11)
Chart Review(11)
Browsing(108)
RTT TV(15)
Sector Watch(25)
RTT Tools(43)
Wyckoff 2.0(42)
Mystery Trader(6)
Market Strategy(68)
Cycle Review(64)
Swing Trade Idea(48)
Market Calls(22)
Investors(105)
News(7)
Bonds(18)
Metals and Forex(153)
Gann Wyckoff Hurst(119)
Wall Street(25)
Ticker Review(35)
Uncategorized(2)
Market Review(95)
Jokes(28)
Economic(87)

202110(2)
202109(5)
202108(5)
202107(8)
202106(9)
202105(7)
202104(4)
202103(7)
202102(6)
202101(8)
202012(3)
202011(5)
202010(3)
202009(4)
202008(4)
202007(4)
202006(3)
202005(5)
202004(4)
202003(10)
202002(5)
202001(5)
201912(5)
201911(5)
201910(7)
201909(5)
201908(4)
201907(5)
201906(5)
201905(7)
201904(5)
201903(8)
201902(5)
201901(6)
201812(4)
201811(5)
201810(7)
201809(4)
201808(6)
201807(5)
201806(4)
201805(7)
201804(6)
201803(4)
201802(7)
201801(6)
201712(7)
201711(6)
201710(7)
201709(5)
201708(5)
201707(7)
201706(6)
201705(7)
201704(4)


 

RSS RSS

ATOM Atom

FEEDBURNER FeedBurner|Email Delivery

  Blog Links
Marker TalkMarkets
Marker PhilStockWorld
Marker FinancialSurvivalNetwork
Marker Yardeni Research
Marker TradingEconomics
Marker dshort.com
Marker Marketoracle.co.uk
Marker Bloomberg.com
Marker McverryReport.com
Marker Calafia Beach Pundit
Marker ForexLive
Marker TurnaroundStockinvesting.com
Marker readtheticker tumblr
Marker readtheticker blogger
  Symbols used in blog
AAPL AMZN AORD AUY BA BB BBRY BMRN BMY BTC COP CRUDE DIA DJI DJT DJU DXY ETH EUR FB FCX FXA FXE FXY GDX GDXJ GLD GOOG HL HMY HPR HUI INDU JJC JNJ LTC MCD NCM NEM NFLX OIL PALL QQQ RGLD SBUX SLV SPY SSEC SSRM TLT TNX TRAN TYX UAN URG UTIL VIX XAU XLE XLU


Follow readtheticker on LindedIn

Seeking Alpha Certified



Contributor to...
McVerry Report


StockTwits








Home | Charts & Tutorials | Market Timing | Blog | RTT Tv | Services | Information & FAQ | Contact Us | Sign Up | Logon
Indicator Library | FAQ | Site Search | Symbols Available | Education | Advisors | General Policy | Privacy Policy | Terms Of Use | About Us
Tutorials | Charts Demo | Charts Members | Charts Secured | Mobile Site | Market News | Investment Quotes | World Time .
Public Disclaimer