Where did this all come from? Dramatic market moves this past week even crashed silver and gold. Bonds were the only investment instrument that went unscathed. So much for the diversification theory that gold and silver would remain uncorrelated and offer protection in a weak market environment. Past debacles have shown that when margin call liquidations enter the market, everything goes down, but yesterday was a bit over the top, as were moves in many key companies across the board.
As the dust settles, it's clear to see that SPX retraced 50% of it's recent move, DJI retraced .618% and Silver retraced a bit beyond 50% but thus far has not exceed .618 that could indicate a trend change. It's also important to note that yesterday's big move down still did not violate the top of Wave 1. In Elliott Wave rules, Wave 4 cannot violate Wave 1. Holding support here gives clues that SLV will rebound to the -.23 Fib level or 19.60.
I held my nose and bought more physicals yesterday, as many of you also did. Also added to the equity positions of First Majestic Silver and Wheaton Precious Metals. Would like to pick up more RGLD if weakness continues.
This is a real bloodbath, gonna get worse. The only problem I face is making sure I have ample powder ready to deploy when we get to the BOTTOM. Goodness.
Best of lucky, Gary. Thanks for the charts as always.
Glewis54
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@TuParkShakur, either you believe in it or you don't. Since the 2008 market fail, I haven't believed in stocks so I've been directing my retirement money to cash. I stay away from real estate as I live in the Chicago area, seeing property and sales and other taxes rise every year as they try to get their arms around pension underfunding. What's left? If you don't have hard assets of some form, in the end, all of the paper moneys and investments will be worthless. I don't have an answer, I don't know where to escape what I see is forthcoming. All I know is that when I hold physical PMs, I don't see an account statement showing me that I lost 10% today. I only see that I have X ounces. You can't put a dollar value on PMs. the dollar has no real value except the faith in the government's ability to pay off all of the debt. Of course it will, but only with the dollar being devaluated to nothingness. The only thing that I find to have value is my ability to still be working and generating an income. Everything else is either a worthless debt instrument or a physical item that is always at risk of being confiscated. Happy March. Sorry to report such a gloomy outlook. :-)
BobbyBanksX
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@Glewis54, thank you for your response! I, too, am glad that I am working and generating an income. I am glad also that I am in a field where my work isn't tied to a physical location. I think with the Coronavirus starting its ascent here in the US, any job that is tied to clocking in will be in big, big trouble. We're in for some major volatility ahead, IMO.
I hope I didn't come off as I'm buying company stocks. LOL, no, I'm going to short them all to hell. I'm just preparing to get my hands on more physical. They make wonderful doorstops and paperweights. :)
I left Chicago and I haven't been happier. Those ever-increasing taxes can kiss my ass, and for what do they even pay for that I get to see and benefit from? Absolutely nothing. There's no state more like the mafia than IL in my opinion. The land of Al Capone is still well and alive. The people that I know that stay in IL are only there because their family network remains. I had none so it was the easiest decision to make. The taxes I've saved this year alone was immense.
Whoever that looked at their 401k this past weekend probably got shocked. But I can only imagine the heartbreak that they'll soon experience by the end of the year.
I love the gloom. Because this time, I will hopefully cry tears of joy instead of despair.
If it's not in your hands, you don't own it! Have a wonderful week, Gary.
Best of lucky, Gary. Thanks for the charts as always.