Silver buying opportunity coming up.

In this post I nailed the short term peak in silver saying that I was looking for a pullback.  The next day, the pullback began.  If you look at that last post you will see that I had actually modeled in a small throwover (expectation that the chart could exceed the top of the channel a bit before coming crashing back down into the channel).  I also wrote, "The last retracement was of the sideways variety so I am looking for a nice vee style pullback this time."  True to form, it looks like we are getting a vee style retracement complete with A,B and C wavelets where the C wave will be the strongest.

As I wrote earlier, this is normal and expected charting behavior.  Nothing goes straight up or straight down.  This pullback is cause for celebration by anyone who missed the initial move and who now wants a second chance to get in at relatively cheap prices.

The next technical check point will be the bottom of the channel and at this point I do expect that it will hold.  At the same time, silver tends to be more volatile than other assets these days and so it could possibly go back down and fill the gap to $19.60.  But I would not count on that.  If you are looking for an entry point, watch the price action at 21.60-21.90 level.  If support is holding there or if silver begins to bounce, I would stop watching and start buying.  Of course the C wave might also not make it to the bottom of the channel.  In fact, the C wave is already longer than the A wave because the B wave was so dramatic.  But I really would like to see a touch of the bottom of the channel (which is like closer to $21.90 than $21.60 based on more detailed charts that I have not shared yet).

Again, within a year or two, I believe that these prices in the low twenties will be a thing of the past.  I think the government is going to talk a good game about cutting off stimulus but then it will continue to find ways to print and spend.  Without this, how will they continue to run their criminal enterprise?  Tax the people more??  Good luck with that because the people are tapped out. 

I also think that all of these illegal wars of aggression do nothing but undermine confidence in the US government on the global stage.  Without confidence it is difficult to run the con and the con is that green paper has any value at all.  Silver will always have value as money and as a commodity (and a high tech centric commodity at that).  Of course market timing is a lot of fun but if you just want to save for retirement (like everyone should be doing) then it's hard to be dollar cost averaging as a time tested, tried and true, low long term risk strategy.