As the Tipping Point Approaches, Thoughts About Silver

by JDH on November 13, 2010

Last week I discussed (in jest?) the supposition that the long awaited Tipping Point was soon to arrive, in my commentary Gold Makes a New High: Proof that the Tipping Point is Here? I quoted from the work of Clif High at, and made the comment that for at least the past year, Clif has been predicting a major “tipping point” during the period of November 8 to 11, 2010. It appears that the tipping point will be financial in nature, and probably caused by, or as a result of, the destruction of paper currency. (Not much of a shock there; it’s just the date that’s interesting).

He issued an update to his forecast on November 3 with his new Tipping Point Numbers. Apparently:

The emotional tension level plateau has grown. It had been previously forecast to start on the 8th, but now shows as beginning on November 5, 2010, at approximately 2:30 PM Pacific Coast Time (UTC =+ 8). Further, the plateau of building emotional tension now extends out further to the 14th of November instead of the 11th.

The ‘break’ in the tension values that indicates the tipping point after which we are into emotional release language starts on November 14th at 6:50AM Pacific Coast Time (UTC=+ 8).

So we have had conditions alter such that the plateau is now starting earlier and lasting nearly 3 days longer.

I don’t know that anything happened on ” November 5, 2010, at approximately 2:30 PM Pacific Coast Time”, and I don’t know if anything will happen “on November 14th at 6:50AM Pacific Coast Time”, but I guess we will know soon enough.

Last week I stated that I hoped the world would still exist this week so I could write this commentary (and apparently it does still exist, since you are reading this). I would like to now take this opportunity to thank Sidewinder for his kind words on the Forum where he said “And yes, JDH I have full confidence you will be back next week.”


Now here’s the cool part (stay with me on this; I have lots to say about silver stocks this past week, but I want to get the fun stuff out of the way first): As many of you know, Sidewinder has his own blog, called Sidewinder’s View. (I suggest you add it to your reading list). On November 5 he published a post called Here’s One That’s Way Outside the Box, and he included a video, reproduced here, about a possible False Flag attack on November 5, 2010.

Of course the nuclear explosion predicted in the video didn’t happen (or I assume it didn’t, since again, you are reading this). The cool part is that The Simpson’s can predict the future (sort of)!

Was it not three short weeks ago that I wrote a detailed commentary on Homer Simpson’s Thoughts on the Gold Market? Of course my commentary really didn’t have anything to do with Homer Simpson; it was simply a cheap writer’s trick to increase interest in the story.

But still, if both Sidewinder and JDH are quoting The Simpson’s, it must mean something.

I have no idea what it means, but it must mean something (presumably that the world as we know it will end very soon).

With that out of the way, let’s talk silver.

The Silver Market

That was one wild week, eh? November 9, 2010 was a wild day, eh?

As this silver chart from Kitco shows, on Tuesday silver was down around $28 at 9:00 am, then ran to around $29.50 by 1:10 pm, and then crashed all the way down to $26.50 by 3:45 pm. That’s a 10% drop in less than three hours! By Wednesday morning silver was back over $28. Talk about a roller coaster.

(It appears that the Futures Exchange raised the margin requirements on silver futures, which temporarily cratered the market).

My thoughts:

Last week, and for many weeks now, I’ve discussed the fact that markets are volatile (as the silver market proved this week). That’s fine; I’ve decided to use volatility to my advantage. How? I buy low and sell high.

I have summarized a series of my trades in
SLW.TO – Silver Wheaton Corp. on a separate post from yesterday called Silver Wheaton Corp. – Volatility is Your Friend. (I had intended to include these comments in today’s commentary, but after I read it I realized that unless you were really interested in covered option writing, it was very boring to read, so I made it a separate post that you can read, or ignore, as you see fit).

The point, of course, is that the market is very volatile. Let’s take another look at the silver chart:

Going back three months, silver is obviously in a nice uptrend channel. As it rises above the channel, silver becomes vulnerable to a pullback. The 6% “crash” on Friday only puts silver back into the middle of the channel. A decline to $25 would put it at the bottom of the channel, and you know what that means:

Buying opportunity.

If you liked silver this week at $30, you will really like it at $25.

Gold, obviously, had the same roller coaster ride this week, and that’s fine. Buy on the dips, and sell (or cover) on the crazy high days. It just make sense.

Given that the world is scheduled to end on Sunday, I would just like to say thank you to each of you for reading my musings over the last few years. I will miss each of you, and I will miss your contributions over on the Buy High Sell Higher Forum.

Of course if the world doesn’t end, I look forward to seeing you again next week.

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