SLV: Reaccumulation (Completing Phase C) /w Fundamental Tailwind
SLV is completing what I estimate to be Phase C of the re-accumulation cycle.
Fundamentally, I think of two impacts on the horizon.
We have more Fiscal "QE" - Biden's tax plan of injection another trillion or two into the economy. This would put pressure on the dollar and cause gold to rally along with its higher beta cousin (Silver).
Alternatively, there is a potential for short term rise in silver from those trying to escape the negative effects of longer duration. They would likely move up the curve in Fixed Income (but there is still some possibility of being run over by the Fed from raising rates, or adjusting their dot plots up) or alternatively avoid the front end of FI by moving their assets into currency hedged products like commodities and precious metals.
I think silver moves up and either breaks out of the channel soon, or continues to be trend bound. I think I will be playing this via short put and long stock combo.
Fundamentally, I think of two impacts on the horizon.
We have more Fiscal "QE" - Biden's tax plan of injection another trillion or two into the economy. This would put pressure on the dollar and cause gold to rally along with its higher beta cousin (Silver).
Alternatively, there is a potential for short term rise in silver from those trying to escape the negative effects of longer duration. They would likely move up the curve in Fixed Income (but there is still some possibility of being run over by the Fed from raising rates, or adjusting their dot plots up) or alternatively avoid the front end of FI by moving their assets into currency hedged products like commodities and precious metals.
I think silver moves up and either breaks out of the channel soon, or continues to be trend bound. I think I will be playing this via short put and long stock combo.
Comment:
The latest set of upward bars look excellent, bigger move up on lesser volume (less effort per move principle)