Bigger Picture

After violent moves like we have seen in the last year for Silver, it helps to step back and look at the longer-term charts. This gives us clarity by helping understand when a bull has more upside, or its time to look elsewhere for opportunities, even short the very things we rode higher! The PSLV etf chart below should make it clear, not only was the breakout significant, but also notice how well its price stays elevated in the face of downtrending stochastics. The relative strength is screaming that there is much more upside.

What we don’t know is when exactly it will begin to move higher with force again. However, if one has proper position sizes in relation to their risk tolerance, we don’t need to know when exactly, just knowing it will go much higher and soon enough, such as the stochastics reach oversold in next month or two, is enough to give us strong hands. As Rick Rule says, a good investment is when you can ask WHEN might it occur, rather than IF it will occur? On that note, he has been a buyer of silver miners recently, a few months into this big pullback, and so have we.