Silver FuturesLong
Silver Could Outperform Gold in Coming Weeks
Today is the big day! The Bureau of Labor Statistics releases the unemployment number at 8:30AM EST. As I am writing this post, U.S. index futures are pointing up and so are Gold and Silver. This morning I'll be touching upon the CBOE Volatility Index (VIX) and Silver Futures (SI!).
The VIX
Bears will be watching the VIX closely today and they should be. Below is the monthly chart of the VIX.
Is it possible to build a bearish case for major indicies with the VIX? Maybe. It's a difficult instrument to chart when using indicators. So instead, I like to use the line chart to cancel out the noise. Notice how support and resistance comes out more cleanly.
Lastly, if you follow the URL below is an image of how the Put/Call ratio is now at its lowest point since early March. Sentiment in the market could be getting overly bullish.
https://stockcharts.com/c-sc/sc?s=%24CPC&p=D&b=3&g=0&i=t5764160416c&r=1588934450613
Short term, I could see a rise on the VIX. Bias: Bullish.
Silver or is it a Slug?
I've been reading a lot of articles on Gold and how Silver is a major laggard. It's true, Silver moves a hell of a lot slower than Gold. However, that could be changing soon. The chart below is the weekly view of Silver Futures.
The sell off in March in my view was the definition of a terminal shakeout. Price should not retest those lows. If it did it would be bearish. There is strong support between 13.70 - 14 and dips are for buying.
On the chart I highlight the divergence between price and Chaikin Money Flow (CMF) during the sell off in March. Though, a technician should not use CMF by itself. Confirmation is required when a divergence like this is spotted. Here I am looking at MACD to confirm the CMF bullish divergence. Silver may be a few weeks away and could potentially outperform Gold. I'll be keeping an eye on this one! Bias: Bullish.
Happy Friday everyone and good luck trading the employment numbers this morning!
The VIX
Bears will be watching the VIX closely today and they should be. Below is the monthly chart of the VIX.
Is it possible to build a bearish case for major indicies with the VIX? Maybe. It's a difficult instrument to chart when using indicators. So instead, I like to use the line chart to cancel out the noise. Notice how support and resistance comes out more cleanly.
Lastly, if you follow the URL below is an image of how the Put/Call ratio is now at its lowest point since early March. Sentiment in the market could be getting overly bullish.
https://stockcharts.com/c-sc/sc?s=%24CPC&p=D&b=3&g=0&i=t5764160416c&r=1588934450613
Short term, I could see a rise on the VIX. Bias: Bullish.
Silver or is it a Slug?
I've been reading a lot of articles on Gold and how Silver is a major laggard. It's true, Silver moves a hell of a lot slower than Gold. However, that could be changing soon. The chart below is the weekly view of Silver Futures.
The sell off in March in my view was the definition of a terminal shakeout. Price should not retest those lows. If it did it would be bearish. There is strong support between 13.70 - 14 and dips are for buying.
On the chart I highlight the divergence between price and Chaikin Money Flow (CMF) during the sell off in March. Though, a technician should not use CMF by itself. Confirmation is required when a divergence like this is spotted. Here I am looking at MACD to confirm the CMF bullish divergence. Silver may be a few weeks away and could potentially outperform Gold. I'll be keeping an eye on this one! Bias: Bullish.
Happy Friday everyone and good luck trading the employment numbers this morning!
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