Wednesday, January 26, 2011

01.26.2011

Market rallies from morning washout






I was expecting the silver market to head lower and it did not. We have a nice rally at the end of the day that seen the market go from its low of a shade over $26.60 and gain almost one full fiat dollar. With this image above you can see how it corrected through time/price for about a hour or two and then built it's energy for another leg higher. The fed did speak today and I had no idea that they were going to. To me its all irrelevant because the fed, fiat money is all a ponzi scheme.

The market managed to get above the five day moving average. Even though the chart shows that there was no resistance at this average, there actually was. From 3:02 to 3:09pm EST it was resistance and then it blew above that level. So it was resistance for a very short period of time. With a declining five day average all rallies are guilty until proven innocent, and it is starting to be proven innocent. Now that it is above the five day average, then we maybe able to see this level start to flatten out and maybe proceed higher. The market is still trading in the downtrend range and until we break the upper band level the intermediate level is still bearish.

As of 4:20pm EST we are barely up for the week now. We have not had four consecutive down weeks since February of 2010 and a lower low is a guarantee for this week and the previous high on silver in last weeks data was $29.08. It is still well below this level and its alright if we end this week with a higher high from last week. However, if we can build from todays rally, then it can make progress going into the next week it will be a positive sign. Regardless, it is building a nice four candle consolidation to the rally that begun last summer



COMMENT from YT user FLUZWU - What are the use of your analysises and the goal of these videos? Do you like to support people who try to earn money by buying and selling silver positions? It is not sure if you will like to do it but when you include opinions of other people and experts the value of your reports can get higher. Your opinion will be based on more sources. And do you reflect about your own videos? Like tell us if you had a clear view watching back to your stories of some months. Like before the ralleys started.

Answer: The use of the analysis is different for each person. For myself it is improving the analysis of charts for my continuous learning. I am an advocate that this world is changing from a negative world to a positive world, but I don't see technical analysis dying. Yes, I expect the money system to die and I hope and expect that we would use charts in different ways to use for analyzing the usage and production of resources, rather than the price of a market. For other people's uses, the main goal is for one to understand better how charts work and to help make my ideas their own.

You asked if I like to support people who try and earn fiat money for buying and selling. The answer is neither do I support or dis support it. Whatever it is people choose to do with this information is up to them, and I have provided a service I feel I can do very well. If one is able to profit from the game and now is able to put food on their plates or pay off debt because of this information, then I guess that would be a pretty cool thing. I do know that the game of buying and selling stocks is a ponzi scheme and is not productive for almost all users. Many people will lose in this gambling game, which is unhealthy and then you have the rich getting richer and that is also unhealthy.

As far as the comments on the "So called Experts", I first use the word "So called" as many people whom are proclaimed to be experts are not and many people whom are humble may actually be an expert. I have linked and referenced to many different sources and over the last two days it has been that of Peter Joseph, whom is the producer of Zeitgeist. This guy might be the best expert that I know of, however I make his ideas my own, as I expect other people to make my ideas their own. I notice the human race likes to talk big on celebrities and stars and this is a little pet peeve of mine. Oh Max Keiser said this, or Alex Jones said that or Warren Buffet is doing this and Peter Schiff believes this. I think "Big deal" and at one point there was a part of me that got a little frustrated that people would not mention my name when I called something so perfect (which I have on many occasions), but I am kind of glad it is this way, because I like being under the radar. People seem to be so strung up on celebrities and I don't see any one person better or worse than another. I don't want to get too popular at this moment and do not care a less if people mention my name. You don't hear any other sources stating how I nailed the $25 bottom call in November or how I posted on this blog on the day the rally started to take the rally seriously. There is a part of me that is glad that they do not. However, those whom have followed me throughout the months and years should have a good idea for what I'm talking about.

The final part of your question was asking if I reflect back on what I said before the past, before the rally started. If you look back at my older silver videos while the silver market was ranging from $16 to $19 per oz I was saying that Silver in the end game is going to win because its 100% the dollar collapses or at least transitions (gets fixed, however its unlikely to be a transition). This analogy remains the same, because of how money is created and how the current trends are aligned. The same analogy has not been changed. In the Zeitgeist movie towards the end, they were stating when you have a Scientific approach then you leave yourself open to new data that makes changes. Thats my philosophy and thus adjusting to the message of the market I feel is critical. I don't just mean what the charts say for your particular index or stock, but even what is going on each second in any aspect possible. The fed does this, and the net result is that, and thus the message is changed to whatever. Therefore, whether I am right or wrong in the past, that means nothing to me, and that's why I could care a less about getting popular because of my calls. I stated that in the summer, the longer a chart is consolidation through time, the larger the breakout/breakdown usually tends to be. I probably said this is in about 4 or 5 different videos then, and I was right on that with this case as the breakout was large. I know this because I have studied this from looking at past charts as well as adding the psychology that many people are observing the range and when the market continues to range it gets more peoples attention as well as the range being easier to see. It also makes the breakout/down more relevant during longer ranges, because as people add long/short positions, this gets more people involved in the range and thus when they are on the wrong side of this, then you get a larger cascade of people selling long positions on the way down, or in this case covering shorts on the way up.

Finally, the reason I make these charts is to show a long term perspective to buying bullion silver. Its a major pet peeve of mine that they state fundamental news for reasons that the market goes up or down. Its all hogwash for those reasons and math will always win. The approach I have used in long term trading using Fibonacci is very successful. There will come a time when the bull market cycle will come to an end and it will be time to unload on the silver. I expect the charts will tell me when this will come.

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