Silver falls back to earth

One way I stopped buying the top of those rocket ship moves

I’m a lurker on 𝕏.

Not like in a creepy way, I’d just rather sit and read than engage.

It’s my introverted personality.

Anyway, one of the reasons I spend time on 𝕏 — despite the vile piles of political garbage that infests my brain — is because I can gain a good sense of the market’s feelings about big ticker moves.

Last week’s topping action on Silver was a prime example.

I’d been following the big ol’ parabolic move on Gold and Silver for weeks.

Both of them were taking off like a metaphorical rocket ship and “headed to the moon!”

(Classic over-hyped trader jargon for a ticker that’s having an almost vertical move.)

Of course, no ticker ever actually reaches “The Moon.” What would that even look like? How would you know when you hit it? Why do people keep using that phrase (unless they’re doing it now to — rightfully — troll the fools who actually believe a stock can get high enough to orbit the earth)?

🌑

Ridiculous.

But it’s useful to see what the “normies” — those with low market sophistication and who only talk about tickers when it hits the zeitgeist — are thinking.

If only because that usually tells me when the top is about to hit.

Once I saw normal people getting uber excited over the pricing action of silver, right around when it hit $100, I suspected the top was there.

Sure enough, last week it finished by falling from $121 to $74 Thursday and Friday.

Just so you know, calling a market top and then buying long Puts to profit from it is NOT part of my trading plan.

I’m much more patient than that.

I prefer to stay out of those “rocket ship” moves, watch from afar, and keep collecting premium.

Yeah, I miss big moves.

But I also avoid a lot of nasty pullbacks that take way too long to recover.

Instead of buying the high and selling the low, I prefer to sell high and later pay $0.

I’ve got time and compound interest working for me.

If you’re sitting long on silver because you got in at the high and are hoping for a quick recovery ... I’m sorry.

Maybe it does recover quickly.

But I believe it will take many weeks to a few months (or more) before it makes it back to those “moonshot” levels.

In the meantime, my trading strategy keeps bringing in money.

Week in, week out.

And takes me about 2 hours per week to execute.

You can check it out here:

» Trading EmpIRA (Course + Community) «

— Ricky Ketchum