Silver signaled a potentially significant reversal Thursday night at the same time as gold, although I did not put out an additional trade recommendation in the wee hours as I did with Gold futures and GDXJ. Both overshot Hidden Pivot correction targets on Friday, Silver by enough to make it a short-term prospect for shorting. Do so gingerly, using the 50.945 midpoint Hidden Pivot resistance of the pattern shown. You can pare the theoretical entry risk by at least 90% by using a reverse-trigger pattern fashioned from a chart of minute degree. I have explained this tactic many times, but if you are unfamiliar with my instructions, don’t do the trade. You could attempt the short at d=52.230 as well. Whatever happens, buyers’ progress through the Hidden Pivot levels shown on the chart can tell us much about whether the short-to-intermediate trend may have shifted to bearish.
Please note that the Big Picture remains insanely bullish, and I mean that literally, since London deliveries reportedly are caught in a potentially fatal squeeze. A chronic shortage of ‘physical’ has persisted for years, and I am not sure why it took so long to blow up in the greedy faces of the white-collar carnies who run the game. Until now, it has been easy for them to borrow bullion for next to nothing, and to substitute ‘paper’ silver (and gold) whenever it suits them. Now they are on the ropes, realizing that Trump’s free-market team is not about to rescue them. Perhaps their lucrative scheme is about to be undone by a bull market, much as a bear market undid Bernie Madoff’s fraud. ______ UPDATE (Oct 22, 12:50 a.m.): The futures have bounced tentatively after plummeting 13% to support on the right side of a garden-variety head-and-shoulders pattern begun in early October. The move up through x=48.074 implies more upside to at least p=49.328, a place to scalp a short if you’ve been long on the way up. A decisive push through this midpoint Hidden Pivot would put the futures on track for a recovery to as high as 51.835 over the next 2-3 days.
