Sunday, April 10, 2011

'Control' Strain In Silver

The normal footprint of control in the silver market is to buy weakness and sell strength. While the diffusion index (DI) reveals this pattern, its failure to push below the previous low during the latest price surge to new highs illustrates a market under “control” strain. As I written many times before, any subtle deviation in leverage markets, the tail that wags the dog in many markets, is highly significant. Subtle changes (hints), we've an increasing number of them in silver since early 2010, tend to precede explosive events.

Silver London P.M Fixed and the Silver Diffusion Index (DI):

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