Silver Hits Key Pivot vs Gold
The recent out-performance of Silver has been duly noted by us and today we posit an argument that perhaps the Gold vs Silver ratio compression is due for a little bit of consolidation.
Now don’t misconstrued this as a reason to short, its anything but and if you missed the Silver run, well, toss that in the dustbin of history because the run from $11 to $27 was epic and many missed it, so don’t fret. Don’t beat yourself up and definitely do not chase.
Magnelibra has enough market disaster stories from its 2 decades of experience to offer you this simple advice, if you chase, you will lose.
Why? Because fundamentally you are acting upon emotion rather than sound substantive judgment and that never ends well.
Example:
We had a flight to catch at 2pm out of O’hare to Las Vegas where we had set up a week long golf school for our workers with none other than good ole Butchy Harmon (TWs coach and we can call him Butchy) Anyway it was 11am, nothing going on, already had a great morning, but greed said, just a little more, just one more trade (chasing it), make a long story short, we barely made the flight!
Why? Because putting on one more trade, trying to eke out just a few more ticks, ended up not only costing us the whole day, but we actually lost money instead of leaving on vacation (well it was actually work that school) up money and happy, it started out on the wrong foot! We finally said enough is enough, let’s go and on to Vegas we went. That is pure greed, nothing more! DON’T DO IT!
OK sorry we got side tracked, anyway Gold vs Silver indexed to 100 for a better spread visual take a look at this chart here:
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