Contrary to popular sentiment, I'm going to be watching If gold and silver get to new highs. I will then be watching for a short side entry within a few days of hitting those new highs.
I wont be fading a certain level, but I feel that new highs may be one last gasp before a nice size correction.
I'm not a trend fader by any means, and I certainly wouldn't step in front of a runaway train, but new highs with divergences and a nice reversal pattern could be a good risk reward scenario.
The "we are buying $3 over spot for silver and $38 for gold" ads I've been seeing are just more signs that sentiment is leaning way too far in one way. Add in some key cycle dates, and the ingredients of a reversal are there. Of course, my sister in law tried to make cream puffs last Sunday, and they came out atrocious (sorry!), so just the ingredients themselves does not make a cream puff, or a reversal. In other words, who cares what my opinion is, what the cycle dates are, or how big the bullish sentiment is. Wait for a signal and use proper size and stops!
All the best in your precious metals collecting!
Michael tiny Saul
tinymjs at gmail dot com
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