Liquidity Lifts All Boats

Liquidity lifts all boats. Some boats rise faster than others. At times I wonder if anyone other than Jim and Dan can recognize a parabolic trend? “Bubbly”, a term often used to describe the action in gold and silver by the media, has a distinct feel and a unique mathematical footprint.

Gold, London P.M. Fixed (Gold) and Z Scores from Primary Trend


Silver, London P.M. Fixed (Silver) and Z Scores from Primary Trend


Headline: Silver Rush Spreads to Stock Market

The mania for silver has spread to the stock market as day traders pile into the buying.

Trading got so heated during the past two days that shares traded in the iShares Silver Trust, the biggest exchange-traded fund tracking the price of silver, topped that of the SPDR S&P 500 ETF, usually one of the most actively traded securities in the world.

Day traders "are going crazy," says Joseph Saluzzi, co-head of trading at brokerage firm Themis Trading. "It's typical of the bubbly speculation that's been going on in silver."

On Monday, trading in the silver ETF was especially heavy, as silver prices soared to new 31-year highs and approached $50 an ounce. Silver is up 46% this year, part of a nine-month rally. The heavy ETF trading continued on Tuesday, as silver prices retreated.

Source: finance.yahoo.com