Why EWI’s Senior Metals Analyst says “I am glued to my computer.”
INCREDIBLE! Silver just printed 12.20, now surpassing the 50% retracement of its entire BULL market from the 4.01 area to highs near 21.35!
Silver has simply blown out to the downside in what is likely thin trading, with a low of 12.20 so far; be very careful here as these are exceptional market conditions. Just a guess, but I would not be surprised if a hedge fund is blowing out of positions.
Note that while gold is no where close to a 38% correction (near 738) of its entire BULL market from the 1999-2001 lows, silver has now gone below its 50% retracement. It is amazing silver is already at these levels; I expect a wild night (understatement of the year?). I may be back again several times as I am glued to my computer!
Note that GOLD so far is just below 800 and obviously testing important 770-800 support. I am wondering if silver is going to perhaps make a final blowout low tonight. There is NO way I can offer you any suggestions here, as it is simply too dangerous, but this is simply well, well beyond the bounds of anything that I would even consider volatile. This is a once every 5 or 10 year type of market in silver right now!
EWI Senior Metals Analyst Mike Drakulich is an Elliott wave veteran. He began his career in 1981 as a stockbroker for E.F. Hutton. In 1988, Mike began The Wave Signals Newsletter, providing in-depth daily and intraday analysis of Elliott wave patterns, technical analysis and sentiment indicators. During this time, Financial News Network (now CNBC) interviewed Mike weekly and his commentary was regularly featured on Carl Swenlins’ decisionpoint.com. Mike now provides commentary for EWI’s Metals Specialty Service.