Engineering Silver Short Squeeze
Please click here for a chart of silver ETF (SLV).
Note the following:
- The new momo crowd is hard at work trying to engineer a short squeeze in silver.
- Silver is a small market and for this reason, it is easy to squeeze.
- There is precedence — back in 1980 silver spiked when the Hunt brothers cornered the silver market only to subsequently crash. There were also attempts to corner the silver market in 2011 — silver first ran and then crashed. Our long time subscribers would remember making a fortune from the Arora calls on silver in 2011. Our call was to back up the truck and buy silver when it was in the $16 range. In ZYX Global there was a 20% allocation of the total portfolio to silver — the largest amount ever. Silver ran to $50. The Arora Report issued a sell signal right at the very top on the exact day when silver topped. Further, The Arora Report issued a signal at the same time to short sell silver or buy leveraged inverse ETF ZSL and gave a target of $34 in two weeks. Silver fell to $34 in two weeks.
- There is unprecedented buying in silver options. Buying includes options that expire today.
- The chemical symbol for silver is AG. AG is also the ticker symbol of a silver mining company. Since the momo crowd does not do research and just buys on hype, there is significant buying in AG from people who think they are buying silver even though AG is identified as a silver company on WSB.
- The chart shows that significant resistance is nearby in silver ETF SLV.
- RSI on the chart shows that RSI on silver is overbought but it has room to run.
- The chart shows heavy volume. Heavy volume is the result of market makers buying SLV to hedge the options they are selling to the new momo crowd.
Robinhood has received a $1 billion bailout from its existing shareholders. Robinhood has also drawn on its bank credit lines. Robinhood has been asked to post additional collateral.
Meme stocks such as GME, AMC, NOK, BB and BBBY are moving higher as Robinhood is lifting restrictions on these stocks after the outrage by the new momo crowd and politicians. Meme stocks are those favored by the new momo crowd.
The new momo crowd is buying Dogecoin (DOGE.X) — it has moved up 345%.
Elon Musk’s tweet is running up bitcoin.
Momo Crowd And Smart Money In Stocks
The momo crowd is 🔒(To see the locked content, please take a 30 day free trial) stocks in the early trade. Smart money is 🔒.
The momo crowd is 🔒 gold in the early trade. Smart money is 🔒.
The momo crowd is 🔒silver in the early trade. Smart money is 🔒 silver.
For longer-term, please see gold and silver ratings.
The momo crowd is 🔒 oil in the early trade. Smart money is 🔒.
For longer-term, please see oil ratings.
Our very, very short-term early stock market indicator is🔒. This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.
Interest rates are ticking up and bonds are ticking down.
The dollar is weaker.
Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.
Gold futures are at $1876, silver futures are at $27.62, and oil futures are $52.87.
S&P 500 futures resistance levels are 3800, 3860 and 3920: support levels are 3630, 3600 and 3520.
DJIA futures are down 166 points.
Protection Bands and What To Do Now?
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold existing positions. Based on individual risk preference, on dips, consider holding 🔒in cash or treasury bills or short-term bond funds or allocated to short-term tactical trades and short to medium-term hedges of 🔒and short term hedges of 🔒. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges. The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive. If you do not hedge, total cash level should be more than stated above but significantly less than cash plus hedges.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash. When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks. High beta stocks are the ones that move more than the market.
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This post was published on ZYX Buy Change Alert.
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