Silver took an unexpected pump north on 2021-01-28. Loads of short-sellers were taken out.
Well part of the inside story is that bandwagons of 'robinhoods' on a certain social media platform, decided to conspire and pump it. They were the same groups of people who pumped GME.
They believe they are powerful based on the GME effect, and can do this sort of thing in other places. But there is a problem coming to them - it will test their power.
Silver is not GME. Silver is a very different market ruled by other very powerful forces, like the US Dollar. We shall watch this one to see if social media traders can really manipulate anything they think they can.
Disclaimers: This is not advice or encouragement to trade securities on live accounts. Chart positions shown are not suggestions. No predictions and no guarantees supplied or implied. Heavy losses can be expected if trading live accounts. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
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They took a small bit out of me cuz I shorted this. So now I realise more this is a social media pump effect. If I'm right then Silver is likely to suffer a similar fate as GME.
It is all VERY interesting. For years institutional investors would use their size to go stop hunting retail traders forcing stocks to cascade sell; now retail traders are going short hunting institutional investors forcing cascading buys. Funny how all the brokerage firms have decided to protect the instos inside of 3 days after allowing them to get away with this for years.
pipinsight
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Watch this space! Looking good so far. I read a prediction of $75 due to silver being a limited commodity and brokers having to cover their shorts will blow the price up as the commodity runs dry. I think they have the backing of not just the retail traders but some big single whales too who shall not be named. Exciting times in the trading world.... kind of screwing with my investment plans as I now have no idea what a 5 year plan looks like... not even 1 week haha.
Captain_Walker
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@pipinsight, I'm soooo watching this one. The US Dollar rules almost anything priced or traded in USD though it's not the sole determining factor.
From my reading Gold, Silver and other metals tend to drift south in recessions (reasons I'm not interested in). Well, a whole loadah countries are in double-dip recession and the US Dollar - still the official reserve country - has been moving up (being the 'gold substitute' after the Gold Standard was abolished many moons ago).
Those who are banking on a new Utopia post-covid are likely to increase demand for USD, sending the DXY higher even in recessions. I may be wrong of course, because weird things happen with the DXY. In addition the US stock markets are in a precarious position. We're in the anniversary period when we had the 40% crash last year US stock markets. DXY did a crazy whipsaw in that period.
Whatever the 'mechanics', I'm glued to the Silver chart. I'll learn something. 👍
@stamencho, I can understand the stock buying as war against the bankers, but why invest in a joke cryptocurrency, that surely just a traditional pump and dump ?
Captain_Walker
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@EncroMoney, For an adrenaline rush? 🙄😁 Sentiment is about adrenaline - not that I recommend it.
We are in a new kind of strategy in the markets, according to gurus out there. The power of social media is well known in the crptosphere. Reddits have brought that home to share prices.
The concept of manipulating a short squeeze is new to me and I'm still trying to understand it. Explained here but whole of the video is important info youtu.be/krRHRDiEDkE?t=702
El_Morenito
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@EncroMoney, Maybe because crypto investors can join the flanks, also WSB can help them make money instead of losing it.
StewySongs
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@stamencho Lol. If you swim against the tide it's only a matter of time before you drown. ✌🏻
Captain_Walker
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@StewySongs, Nahhhh.... it depends innit. You could get eaten by a shark before you drown! 😂
In trading terms, going against the trend is not a great idea. I agree that the big push in the trend is for the north as seen in the amber line and with the naked eye. Some have actually not looked at the importance of the amber line cuz their emotions prevent them from doing so. It represents a trend switch. At 2021-03-11 09:38 GMT there are two counter trends developing on 30 min and 15 min time frames. Nobody.. nobody can know how far they might go.
It may well fail, so I have only given a probabilistic estimate of further travel south. If there is a 51% chance in my mind that it might move south, then there is a residual 49% chance that it might move north. Read that again. It's not a prediction. In other words I'm well aware that I may 'go under water' - but my rescue is a thing called a stop-loss. Some traders don't know about it's importance- trust me on that. Oh sure they know of it. But it's importance is not well appreciated. (Nothing here refers to you). So drown - I shall not! 🤣
My methodology aims to find trends early. It will be seen as scary for a majority of traders who don't understand it and the risks i.e. big losses and excessively large gains.
The idea in any trading system is for aggregate of winners to well exceed aggregate of losers. The methodology doesn't work for most people. Why? Because I can't, won't and don't provide skill and that's the same for any other system that is sold out there. But just to be clear, I'm not pushing this methodology. I don't sell anything. I have no desire to take money in exchange for hopes. And for sure I don't want to cause anybody to lose their money.