Greed Driving Broader Markets Today, Fear To Spark Precious Metals Fireworks In The Future
With the Fed propping up the entire market and extreme greed driving the stock indexes to new highs, investors have lost interest in the precious metals, for the moment. However, I am not surprised. What is taking place in the overall markets is precisely what I forecasted back in September.
After gold and silver broke out of key resistance levels in the summer and then moved to new highs for 2019, a consolidation period would likely follow before the precious metals began the next leg up. I mentioned this in my last Youtube precious metals update, Silver Price Update & End Of Mining Era, published on September 21st.
In that video update, I posted this daily chart on silver:
I stated that silver would probably correct back down to these price levels before setting up for the next phase higher. Today, silver fell to a low of $16.71 in the U.S. markets ($16.58 in overnight markets), so it seems to be heading down to the $16.20 level. Here was the silver price on stockcharts as of Thursday, November 7th.
I believe silver will fall back to that $16.20 level, according to how traders are now anticipating the market. Again, I am not saying that silver should go down to $16.20, especially with all the Fed money printing and Repo-madness, but this is how traders are viewing the silver market. Why? Because the Fed is now buying $60 billion a month in Treasuries, the same as the U.S. Military monthly spending budget, it has given the market another FALSE BUYING SIGNAL. Thus, GREED in the market has gone back up to a record “Extreme Level.”
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