My reiterations of fiction may seem that way to you, but I predicted on this very board that we were headed for a nasty correction as the price of silver approached $50. Just go back and look at my posts.
Any time you see a parabolic move, like we saw in silver the last couple weeks, 9 times out of 10, a correction is coming. (Bullish) traders had a magnet taking it to $50. We may all agree that the fundamentals look great for silver going forward. But nothing goes up in a straight line. Increasingly silver has become attractive to investors (whether it be paper or physical). Where investors are dominating a market, it is very prone to both manipulation and profit taking.
Markets often follow trading patterns. Whether it is the stock market, commodity market or whatever. There are going to be upward moves, followed by corrections. As some have pointed out on this board, corrections are actually healthy for the longer term move. Jim Rogers said recently that he was hoping that silver would correct and take it's time going up rather than going straight to $100 for a move like that indicates an ultimate top.
Traders try to play both sides. I generally just maintain a long position unless I feel really strongly that a correction is due. In the case of silver, correction was blinking a flashing red light for those who wanted to see it to get out.
Like I said, silver is going a lot higher. But it isn't going there in a straight line. It will be very turbulent and those who are patient will reap the rewards.
AI
