Category: Precious Metals
VIDEO: Silver Frustrates Market Participants
Wouldn't investors feel less frustrated if they looked at the right causes for market behavior?
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| By Vadim Pokhlebkin |
Published: Wed, 23 Apr 2008 17:45:00 ET |
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April 23 (Bloomberg) – Silver futures for July delivery tumbled 54.8 cents, or 3.1 percent, to $17.276 an ounce. Silver…has tumbled 5.7 percent in the past five sessions.
Gold fell to the lowest in almost three weeks… Participants continued to be frustrated by the metal's recent lack of response to outside drivers and by investor apathy.
Most of the conventional financial analysts remain convinced that what moves market prices are "outside drivers": the Federal Reserve, interest rates, supply, demand, oil prices, you name it – anything BUT the actual collective mindset of traders and investors.
Investors are conditioned to think that markets are rational, so is it any wonder that when none of the "reasons" explain the trend, they feel frustrated?
We at Elliott Wave International hold a different view. Based on 30-plus years of observing the effects of "outside drivers" on market behavior, we believe that while those "drivers" can (and often do) cause temporary price spikes, they do not create the actual trend.
What does, you ask? Collective emotions of the traders and investors involved in that particular market do.
We also believe that investors' collective emotions are reflected in market charts. Furthermore, those "mood swings" unfold according to patterns – Elliott wave patterns. And once you determine where in that pattern prices are, you can predict where they may go next.
Last week, we shared with you an April 9 Gold and Silver video forecast by Mike Drakulich, the editor of EWI's Metals Specialty Service. (Watch it here, free, if you missed it.) Today, we would like to share with you another video – a short clip from a follow-up Gold and Silver forecast that Mike recorded for his subscribers on April 18.
Elliott Wave International's Metals Specialty Service brings your intraday and daily forecasts of Gold, Silver, Platinum, LME/COMEX Copper, Aluminum, plus regular coverage of Nickel, Zinc, Tin, Lead, HUI and NEM. Learn more here.
Compare silver's price action since last week to the forecast you'll see in this April 18 video. Don't you think market "participants" would feel less "frustrated" if they looked at the right causes for market behavior?
You will find Mike Drakulich's latest video forecast (April 23) inside Metals Specialty Service right now. The new video gives you a brand-new forecast for Gold and Silver. Watch it now via a subscription to EWI's Metals Specialty Service.