Fibonacci Financial

Silver & SLV  are about to break down similar to the move in Gold and GLD a few weeks ago.

If you would like to know how to generate the above chart at StockCharts.com let me know. That way you can follow the progress of price action.

When SLV prints a Red Goose Egg in the box between $11.50 and $12.00 it will have provided a screaming sell signal.  This may happen any time over the next few days or weeks (don’t be impatient dear reader).  Then over the next few months silver should march down to the BUY Me zone.  We have been waiting a couple of years for another opportunity to add to our core position.  Silver is the worlds best secondary media1 of exchange for most people.  Silver has been a core holding in the FF Investment Model of Asset Allocation since 2001.

But dear reader beware!  When Silver and SLV get down into their buy zone they may not be a buy.  We will do a thorough analysis at that time.  If long term trend lines are broken, the COT readings are negative and price action does not provide a clear buy signal, it may mean that the deflationary Tsunami that is sure to follow the current Bailout Mini Bubble is going to sweep silver much lower!

We won’t know till we get down to the buy zone and examine the battle field.  Stay Tuned

This is presented to provide a peek into how asset allocation decisions are made for the FF Investment Model.  I often use Point and Figure Charts (its all about price action) to provide timing signals that help in verifying what other tools are signaling.  P & F charts are a great tool for confirming the timing of Event Expectation Scenarios provided by Austrian Economic Analysis (Austrian Econ is not good for timing BUT excellent for modeling what to expect) and for timing of investments based on activity provided in the COT Commitment of Trader reports.

Want to be an insider and get my complete analysis when silver gets down into the BUY Me zone?  Drop me a comment

In the immortal words of Cap’n Flint “Pieces of Eight, Pieces of Eight” & ” Welcome aboard the FF Ship Matey”

PS: If you found this valuable or interesting PLEASE drop me a comment !

Notes

1 I will explain the praxeological difference between secondary media of exchange and money and its importance for investors in a subsequent blog  (hint for those of you that can’t wait look for it in the index of Human Action by Ludwig von Mises, free pdf of the book and study guide available at Mises.org).   Silver was demonetized after a historic struggle between the banksters and society in the 1900s and early 20th century.  Remember the Sin of ‘73!  The battle to debauch money & demonetize first silver then gold is one of the most fascinating intrigues in all of history (It would make a great historical novel starting clear back in ancient Greece) When the great fiat money con finally blows up, silver will be re-monetized by the market (you and I).

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