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Hi Ho Silver

By: Erik Swarts | Wednesday, December 5, 2012

The rubber band that is the US dollar index continues to extend from its late November hinge.

2011 SPX versus 2012 UUP
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Considering that weakness in silver has preceded major pivots lower in the euro - dollar bears would be wise to heed its call and take shelter for an early winter slumber. I am indeed biased here, but can appreciate the symmetry of their respective retracements. Both silver and the USDX exceeded mirrors of their 61.8% retracement levels. The bottom line though is that silver continues to hold prescience to risk appetites.

Silver Daily Chart
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That is - if you're not in denial.

1991 Nikkei versus 2012 Silver
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Hi Ho Silver - Away!

 

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.

Copyright © 2011-2014 Erik Swarts