Silver is up another 3% today, to $39.44. Investor excitement about silver is suddenly back, as the fears of a dip to $25 have been completely erased from silver bugs' minds during the recent big up-move.
The real question is, how did you respond to silver's sell-off to $33? Did you accumulate physical silver INTO the lows, hand over fist?
Less than 2 weeks ago, on July 1st, the cartel initiated a massive raid that look silver to ~ $33.20. We wrote that if $33 couldn't hold, there was risk for a move down to $28-$30, however the big dip in silver MUST BE BOUGHT!
I think its worth re-reading a section of that post on 7/1 to help readers recall what they were FEELING at that moment:
Silver is in danger of retesting the lows for this correction near $32 if it cannot regain the $34 level today.
Technically, it looks like silver could still test the $28-$30 support level we have mentioned previously if $32 does not hold, with a possible brief final capitulation as low as $25.
Again, we repeat technically, as psychologically silver feels to be nearing its low.
Nearly every comment, and email received in the past week, as well as comments on other silver sites and forums are about how the smart move is to hold off on buying silver- "its going lower!!".
When everyone is this convinced and beating the table that silver is headed lower, a bottom is near.
This is why we constantly encourage our readers to RESPOND TO PRICE ACTION rather than attempting to predict it. This is how a professional trades. Mom and Pop price chaser were buying hand over fist at $48 because they didnt want to miss the move to $60. Now they're holding off at $33 because they're sure silver is headed to $25 or $30.
If you can predict price action better than the pros, you would be making $75 million a year working for JP Morgue or The Squid.
Quit attempting to hold out for and perfectly time silver's ultimate bottom, AIN'T GONNA HAPPEN!
Whats going to happen is greed will take hold, and while you wait to place your buy orders until silver goes just a little lower, the train will leave the station and you'll be standing there without a boarding pass or any physical!
Accumulate as price corrects! You should be BUYING into today's $1+ cliff dive. IF price declines further to the $28-$30 support range, RESPOND BY ACCUMULATING MORE!
We re-post this excerpt not to proclaim that The Doc called the bottom to the day, but to help you learn from your emotions, and respond in a more professional way the next time the cartel has you terrified about silver.
As you can tell from the post on 7/1, even The Doc FELT that silver would go lower, and there were even technical reasons and indicators to support this view. Emotionally, silver was inducing a massive fear response.
Your own emotions can be one of the best indicators in helping you trade (or in our case with silver, accumulate).
The best time to buy is when you are outright scared sh**less that price is headed much lower. Don't miss out on corrections by hoping to time the exact bottom. Accumulate in larger and larger increments as price corrects lower. In a word, RESPOND!
When emotionally you feel like you are missing the boat and every day that you wait to buy you're missing out more and more, its best to hold off on your purchase, a correction is likely near.
So on 7/1, even though silver FELT like it could head much lower, we advised readers that such a dip MUST be bought professionally!
The Doc practices what he preaches here, and bought Phyzz aggressively that day in the $33's. Now, less than 2 weeks later, that silver is up $6 (~18%) before its even been delivered!
If you didn't accumulate silver into the amazing correction that culminated in a final massive take-down on 7/1, don't despair, learn from your mistake, and start forcing yourself to accumulate silver on price weakness!