Elliott Wave Overload: Silver Skyrockets, XAU + BTC Correlation

15 de ago. de 2017

Historically, silver is a highly liquid, highly volatile asset. It has a variety of industrial uses, probably even more than gold, and thus I see it as quite undervalued. Here, I'm playing with several Elliott Wave patterns to confirm my fundamental longness on silver. There is the initial impulse wave (1-5) with the extended third wave (1-5), and then the corrective wave (ABC) with various sets of 5 subwaves. I've projected larger degrees of long impulse waves to illustrate potential scenarios and examples of future corrections that one can reasonably expect in accordance with Elliott Wave Theory. I do believe that $75 silver will come to fruition within 2 years, potentially even $100+. As capital flees the crumbling $2 quadrillion institutional derivatives market, it will seek refuge in assets like gold, silver, and others, and I believe this is also a cause that can account for bitcoin's skyrocketing price. Below the chart are correlation coefficients between silver and gold, and between silver and bitcoin. As you might expect, correlation with gold is much stronger, though the strength of the correlation seems to oscillate, whereas bona fide, stable correlation with bitcoin is much less identifiable. Even at current spot price I find silver to be a very attractive purchase for the next 2-5 years. It might come down to $14 in the short term, maybe even down to $8 or $10, who knows? It doesn't really matter, my advice is to start buying, and keep some physically handy for when the mobs take rule. Own the underlying asset. Silver is used in everything from surgical sterilization, to windows, to the production of solar panels (this is a huge one). You do NOT want to be storing your silver (or anything really) in a bank. That's a BIG NO-NO. Private Vaults only (they offer much more protection from government thievery, which IS coming, and sooner than we think). I try not only to produce compelling charts, but to introduce to my viewers the many layers of fundamental variables lurking beneath each and every trade that they make. Simply put, silver can't be printed. Moreover, supply is not expanding, it's actually disappearing rapidly into industrial uses. When you understand fundamentals, everything makes sense. When you only use technicals, nothing seems to make sense. Either way, when you know you're right, you need to be able to go big to win big in this game, and big balls are not standard issue for all traders. Happy Hunting Everyone!

19 de abr. de 2018

Nota

This prediction is still looking good, I'm still long on it, I think the explosion is still coming, and I think it will be soon, but it could be preceded by a flash crash, as in the case of 2008-2009, prior to the moon-move. Wait, accumulate, and be patient.