From the Desk of Ian Culley @IanCulley
Silver futures are rising to the occasion.
The silver-to-gold ratio went from posting fresh six-month highs last Monday to hitting sixteen-month highs by Friday’s close.
Silver is ripping on absolute and relative terms, and this can mean only one thing:
Risk-on!
Check out Silver driving home an explosive resolution following a successful pullback:
The pullback is another name for a retest – a common feature following a significant breakout. (Some use the term “throwback” to distinguish the action following an upside resolution from a “pullback” that displaces a downside resolution. But they’re all pullbacks to me.)
Interestingly, top-flight international soccer uses the same term for a particular goal-scoring tactic—a player takes the ball to the touchline and then passes to a teammate at the top of the box, who waits to direct the ball into the back of the net.
Premier League Champions Manchester City and Runners-up Arsenal successfully applied the pullback in a match last week. (One can only hope Liverpool’s incoming manager, Arne Slot, is taking note.)
But these goals were not drilled. They were not bent like Beckham. Instead, they were well-timed passes following a swift directional shift.
Last Friday, Silver scored a similar goal.
As long as silver futures are trading above 30, we’re targeting our next upside objective of 35.
The Junior Silver Miners ETF $SILJ also put some points on the board. Here’s SILJ completing a multi-year bullish reversal:
I like owning SILJ above 12.20, with an initial target of 17 and a secondary objective of 21.50 (the 2013 high).
If Gold leads the way, Silver brings the heat.
It’s no coincidence that Copper and Gold are reaping new all-time highs as investors seek riskier assets.
Buy signals are mounting as the market rewards investors for owning rocks and their stocks.
It’s good to be a gold bug, especially as Silver pumps its fist in celebration.
Do you follow the English Premier League?
If so, who’s your team?
–Ian
Click here to watch this week’s Gold Rush Video:
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Allstarcharts Team
