Unfortunately EdG has't yet registered an earthquake in the silver market that should give us room for a substantial price hike. If it has to come, let it come fast.
Monday, May 14, 2012
Earthquakes Before The Price Eruption In Silver Coming
Silver will be the key to timing precious metals in the coming weeks. Silver diffusion index which surged to 75 suggests massive inflows (long buying and short covering) into price weakness by the invisible hand (see chart 1). This is extremely bullish.
Chart 1: Silver London P.M Fixed and the Silver Diffusion Index (DI)
The invisible hand while focused and busy may not be done. Similar to the gold market,
earthquakes before the price eruption tend to precede major bottoms (see chart 2). The silver volcano while rumbling and venting gas has yet to record any significant seismic activity. It's coming and only the perma-bears won't feel them.
Chart 2: Silver London P.M Fixed and the Silver Long/Short Concentration Index (CI): 1 = Bullish Setup, -1 = Bearish Setup
http://edegrootinsights.blogspot.fr/2012/05/earthquakes-before-price-eruption-in.html