Social Darwinism

By: Erik Swarts | Fri, May 6, 2011
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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?

SLV Hourly Chart


I just joined Twitter. All my trades and occasional market musings are disclosed in real-time here.



Erik Swarts

Author: Erik Swarts

Erik Swarts
Market Anthropology

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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