Last week I was euphoric about silver coming on strong on the back of gold. Didn't happen. In fact silver may be poised to pull back from here. Please understand I am not feeding these commentaries as outright sell or buy suggestions, only for adding new monies. I'm not selling my silver or gold even when the cows do come home. Root Hog or Die!
You should recall that one of the reasons for my excitement was the white-line crossover of the slower, lighter shade trending line on the MACD. Upon closer examination that crossover can also indicate a short-term cyclical tipping point. What I'm saying is that the crossover lags the upper MACD indicator which marks the turn-up or turn-down in the bars as indicated as "B" or "S". It's best it correct now while the upper MACD indicator is barely positive above ".00". Any further correction should be relatively shallow. You can follow thru with your own analysis by clicking on the image which has a link to take you to the charting.
Just below is the same chart, only DAILY. It appears that the DAILY furnishes us a clearer picture of where we might "sell" (wait for a pullback before adding new money). Because of the choppiness in the DAILY MACDs is the reason I prefer the WEEKLY charts as well as giving us a longer timeline. The WEEKLY is certainly more reliable on buying, but as noted above can come up short in calling the sells. Please note that the DAILY chart below is a 6-month chart, unlike the WEEKLY which is a one-year chart. This is necessary to preserve the indicator criteria which is compressed in a longer time period.
Using what you learned above, you should see which of the two metals is favored - know that in a serious precious metals bull run silver's volatility enables its price advance to exceed gold's. What we want to do is crack that blue 50-week mov. avg. line as it did in late 2003.
Tend to your fields, root hog or die, be patient and we'll be livin' in High Cotton.
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