Silver May Be Making a Blow-Off Top Today
The silver ETF normally trades 14 million shares per day (3-month average). Today as of 3:00 pm ET, it has traded 114 million shares or 691% above its average, which is very, very rare. We have been concerned about a rally in the dollar and the possible negative impact on silver and gold. While today's gains in the dollar are still somewhat tepid from a conviction standpoint, the greenback is still up for the 3rd day in a row. As of 3 pm ET, SLV is off 5% from its intraday high. It is possible we are seeing what is known as a "blow-off" top in SLV today. If SLV finishes the day in the red, which may not happen given silver's incredible strength, then it may be a sign of a short-term reversal. We have to see how SLV closes before we can read too much into it.
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Author: Chris Ciovacco
Chris Ciovacco
Ciovacco Capital
Management
Chris Ciovacco is the Chief Investment Officer for Ciovacco Capital Management, LLC. More on the web at www.ciovaccocapital.com.
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