It's comforting to know that the market still conforms to both natural (gravity)
and social (darwinism) law. And while I would never wish liquidation by margin
to any fund or market participant - surely the thicket of fast money extraordinaire's
has been thinned appreciably.
We thank them for their months of service to the liquidity spigot and bid
them farewell and good luck.
We are all better off without them in the long run.
With that said, any attempt at donning a rose colored perspective to what
we just witnessed in the silver market would introduce the very real possibility
that you yourself may meet that same fate.
This is a shot across the bow to the market, just as the action the previous
Tuesday was a shot across silver's bow.
Mandelbrot was a genius.
It behoves all of us to see the market as a fractal expression of itself in
differing timeframes. It is more than a little bit disturbing that the price
action in silver is following the 2008 analog to the hour.
I believe the equity markets had a bad second half - no?
I just joined Twitter. All my trades and occasional market musings
are disclosed in real-time here.
Although I am an active trader, I have always taken a broad perspective when
approaching the markets. I respect the Big Picture and attempt to place each
piece of information within its appropriate context and timeframe. I have found
that without this approach, there is very little understanding of ones expectations
in the market and an endless potential for risk.
I am not a stock picker - but trade the broader market itself in varying timeframes.
I want to know which way the prevailing wind is blowing, where the doldrums
can be expected and where the shoals will likely rise. I will not claim to
know which vessel is the fastest or most comfortable for passage - but I can
read the charts and know the risks.
I am not a salesperson for the market and its many wares. I observe it, contextualize
its moving parts - both visible and discrete - and interpret.
I practice Market Anthropology - Welcome to my notes.
Erik Swarts is not a registered investment advisor. Under no circumstances
should any content be used or interpreted as a recommendation for any investment,
trade or approach to the markets. Trading and investing can be hazardous to
your wealth. Any investment decisions must in all cases be made by the reader
or by his or her registered investment advisor. This is strictly for educational
and informational purposes only. All opinions expressed by Mr. Swarts are subject
to change without notice, and the reader should always obtain current information
and perform their own due diligence before making any investment or trading
decision.
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