Monday, April 25, 2011

Silver and US Long Bonds Markets

Silver, despite the hype generated by price action, is not the market of all markets. It is simply a market under ‘control’ strain. There is only one phrase that characterizes this market – sh*t is a changing. The old setup of shorting strength to control the advance has been disrupted. This is why silver has become an explosive market.

Silver (SLV) and the Commercial (C) Less Nonreportable (NR) Traders COT Futures And Options Stochastic Weighted Average of Net Long As A % of Open Interest:



All markets are interconnected/interrelated to some degree. Variances in timing may give the impression that one market is more important than another. It’s this difference in timing (phase of the debt crisis) that makes the bond market extremely interesting right now. Building a position (long or emphasis on short) through patience and timing is a critical part of investment discipline.

US Treasury Bond 20YR+ (TLT) And Bond Diffusion Index (DI):

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