--Maverick (Top Gun)
Silver got going late last summer about the time of the Fed's QE2 ruminations. It has looked back since.
Current action has that gappy, parabolic look of a blowoff. Various oscillators such as the relative strength index and slow stochastics are pretty much plastered against the ceiling.
There are, of course, plenty reasons why 'White Lightning' could continue to zap higher, not the least of which is the Fed's non stop printing press.
Action like this that demonstrates why it's so difficult to stay on board during a bull market. The moves higher seem too good to be true, and the corrections that follow seem too painful.
position in silver
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1 comment:
Investors who have had a run of success, whether from short-term trading or long-term investment, have a tendency to relax and lower their guard, because they have not recently been tested by the market. When profits have been earned with very little effort, they are not appreciated as much as when you have to sweat out painful corrections and similar market contortions. Part of this phenomenon arises because a successful campaign reinforces our convictions that we are on the right path. Consequently we are less likely to question our investment or trading position even when new evidence to the contrary comes to the fore. We need to recognize that confidence moves proportionately with prices.
~Martin Pring, Investment Psychology Explained
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