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Created on: 7/27/2022 7:22:24 PM Last Update: 7/27/2022 8:14:42 PM Posted by: RTT WARNING: This entry is 804 days old. It may contain broken links, out-dated or misleading content. Please read on with caution.
1 POST
Silver 2023 looks bright
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Investing in silver will raise your stress levels, it looks like the stress release will be in 2023.
The trade of silver vs paper fiat currency.
The whales accumulate silver during a down swing to ensure a lower cost average entry price. Down swings in metals occur when fiat paper money strengthens. Paper money strengthens when the interest rate is rising. Up swings in metals occur when fiat paper money weakens. Paper money weakens when the interest rate is falling.
Lets review an example of the above at work (ref Chart 1).
Black Numbers During the (1) and (2) down swings there was high volume (accumulation) while short term interest rates move higher (green US 1 yr interest rate). These down swinging waves can be called accumulation because there was no break down in price. Therefore price was manipulated lower to achieve a cheaper cost average of price entry. The higher volumes during (1) and (2) has to be professional buying, as retail trade can not do this. Both (1) and (2) are tactical lower lows, and is not a price break down, yes you can call this a bear trap.
Now during (3) and (4) short term interest rates peak and begin to roll over. These swings are on good volume and are the last chance for the professionals to accumulate in size before the retail traders work out silver is turning bullish. Professional traders work with new lows, retail traders work with higher lows, hence they are late to the turn.
When the professional traders encounter bullish news they allowed price to rip higher as fast as possible, to simply frustrate retail traders trying to enter with size. Hence the retail trader is late to enter and the conditions to enter in size is frustrated by professional moving price too quickly (gaps, pull backs, spikes).
Purple Numbers (1) and (2) are repeating the black (1) and (2) swings. Forming a bear trap (well so far). Short term interest rates trends are the same, moving higher and peaking.
As we roll into 2023 growth and deflation concerns will pressure short term interest rates lower, allowing (3) and (4) to build. At the first sign of bullish news the professionals will allow price to rip higher before the retail trader can jump on board with any size. Once again the retail traders profit chances are limited by the professional.
Rinse and repeat.
Chart 1
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Chart 2 - When the fiat currency (US Dollar) interest rates fall the metals do well.
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Chart 3 - A inflation crash is near. Falling inflation is less pressure on interest rates. More so when growth falls as well. Watch the US PMI's in the next 3 months.
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NOTE: Posts here are the lite version, more depth on each subject can be found via our RTT Plus membership.
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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.
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Investing Quote...
...“It is impossible here to give an adequate idea of the Law of Vibration as I apply it to the markets. However, the lay man may be able to grasp some of the principles when I state that the Law of Vibration is the fundamental law upon which wireless telegraphy, wireless telephones and phonographs are based”...
William D Gann
.."Just because you’re taught that something’s right and everyone believes it’s right, it don’t make it right."..
Mark Twain
.."October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February."..
Mark Twain
My experience has been that in successful businesses and fund management companies, which performed well over the long-term, some courageous decisions were taken. Courageous fund managers reduce their positions when markets become frothy and accumulate equities when economic and social conditions are dire. They avoid the most popular sectors, which are therefore over-valued, and invest in neglected sectors because being neglected by investors they are by definition inexpensive. The point is that it is very hard and that it takes a lot of courage for a fund manager to avoid the most popular sectors and stocks and to invest in unloved assets. Finally, every investor understands the principle ‘buy low and sell high’, but when prices are low nobody wants to buy.
Marc Faber
..."Politicians and diapers must be changed often, and for the same reason."..
Mark Twain
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