Friday, June 24, 2011

Silver : Technical Elliot Wave vs Fundamental Analyst

SnapShot Summary
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. A discourse of Technical Elliot Wave vs Fundamntal Analysis

. The Gold Money writer takes a jab at Elliot Wave technicalists.

. According to technicals, Silever has broken out of a triangle in a downtrend

. Applying Elliot A-B-C, the downward projection will bring it to $25-$30 range

. With a major 200MA support at $30

. However the writer almost to the point saying that Elliot are for the naive

. As there are so many other bigger issues affecting the Silver market

. Like the secretive central bankers

. And the bullish demand from Indians and China

. The writer claim further that only the big commercials precipitate the Silver sell down in May

In his words

The people who really know where this balance lies are the market makers, or in the case of the futures market, the commercials. They learn with great rapidity the quality of business a floor broker has, and how successful that broker and his clients are in their trading activities. This is important knowledge that is denied to the rest of us, which is why the commercials were so successful in precipitating the severe shake-out in silver in late-April.


. I beg to differ, as me and my friend during lunch on the eve of the Silver sell down were just talking about the Silver reversal that is to come and to take a short position that night. And there were many newsletter advising of the Silver Top in the week prior.

. So we may see Silver at $25 yet !

. Just as Elliot wavist maybe naive, going by what the writer says Fundamentalist has no clue either. Actually they too do not know the whole picture. There is no way to assemble the jig saws pieces of all market players and data. Therefore one should let the price action tell him whats going on.

. As any player big or small who wants to play Silver has to buy and sell Silver ! And all that negotiations between buyers and sellers are reflected in the price actions.

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