Lets review how resistance is created. 1. More to sell from previous test. 2. People who bought resistance on previous test, look to get out at break even. Do you actually think, there is some firm who was selling $50 before, is still selling? Also, I doubt people are holding 30 years to get out... In fact, its amateurish to call this resistance. $50 WILL break very soon. As a disclaimer, I use technical analysis for 95% of my trades.
-------------------------------------------------------------------------- Written like a true numbskull. I'm sure you're a nice man in real life, but on this subject you're unpardonably ignorant. $50 was/is "resistance" i.e. a ceiling at which savvy traders are *more likely* to sell than buy. Should $50 resistance be taken out decisively, it may then become a support, on its way to new nominal highs.... If you don't think $50 is resistance on silver, then there's nobody here, myself included who can help you. I could care less if it breaks soon. I'm not emotionally involved, unlike some others on here. BY THE WAY......... I challenge anyone to cite any factual mistakes I've made. I made some very clear statements that, like the COURT SYSTEM, which is based on **PRECEDENT**, silver failed at $50 which was multi-year resistance. It **DID NOT** fail because comex raised margins a few thousand bucks. It was simply the intermediate-term top. Silver had a $5 loss on Monday, which is $25,000 per contract. CME Group raising IM requirements is a POSITIVE sign. Again, if you don't comprehend that, get out of trading and give your money to some guy at Edward Jones. All you silver guys who refuse to acknowlege basic mechanics of trading are acting FOOLISHLY and allowing your emotions to unduly influence your financial decisions. This thread is cool b/c now we know who the tin-foil hatters are. =) --Chicago
No brilliance here, friend. And I need nobody's approbation. Simply want to convey that silver is liquidating b/c it didn't take out multi-year resistance; the COMEX is NOT...I repeat, NOT out to get you (or anyone else)! 8% initial margin requirement is very fair.
Lol Im not even long silver right now, haven't this whole run up... although silver has come off from $50, my point is that it is NOT because of the high in 1979. The reason silver came off from $50 was because of: 1. Psychological round number. 2. Profit taking. 3. CME margin cuts. Yes there may have been small traders shorting it because of the high in 1979, but it is not the sole reason like you make it out to be... it could of very well blasted through $50 no problem. Never get emotionally involved. I agree.
In fact, I was expecting them to break $50, run the stops, then crash it down. However, I unfortunately wasn't able to capitalize on that situation.
___________________________________________________ Fair enough, Julian. That was a distinct possiblity as well. The reason I started this thread is that silver has experienced a METEORIC RISE, doubling from recent levels, only to fall from a price not seen since 1980. There are many tin-foil hatters who are, frankly, GREEDY GREEDY PIGS! Now some of them are getting slaughtered, and are blaming a conspiracy on CME Group for having 8% Initial Margin requirement; or for the white metal backing off resistance. ::Shoulder shrug:: Greedy people tend to lose; and I'm sick of the nonsense!
Agreed. That WAS a parabolic run. Naturally, silver tends to have those 2-3 day crashes, so it was coming anyways lol.
As a rule, I NEVER average down. But in this case, I say go for it. Maybe silver goes to 20$ (>1% chance). But it's definitely going to 80$. USD is toast. End of America. Silver will definitely bottom out soon. Pull a gold chart: wicked selloffs at the $1,100 , $1,200 and $1,400 handles. Shit happens.
There is no conspiracy regarding raising margins, only timing. In fact, it will be raised again and again before this is all over. You are entitled to your opinion, I have mine.