TTUArmy said:
Hey H-A
With this downturn in silver, as well as, Fed rate reduction, do you think the Bigs are paring down their silver short positions?
I'm not sure. But election night saw a significant move from commodities to risk assets. A significant amount of dry powder was also pushed in. My back of the napkin theory is this is exactly type of mass sentiment needed to engage a blowoff top. Small caps (aka flying trash) running up even higher is going to create a lot of room below as the majority of those companies balance sheets are incredibly weak and some are even laughable.
SLV/SPX is still setting up nicely for outperformance. Might extend to next year, but I'm not even remotely bearish on metals. Gold is much further along though than silver. Watch the Gold/Silver ratio. Metals bulls dont end until that ratio drops to 40 or lower, and it can happen rather suddenly. Silver spiking is always the last thing that happens as retail and money managers finally move in only for it to top and roll over.
