Thanks to my friend NPR, I got suckered to watch Ben L. in the CrackNBC channel. Not that there is anything wrong with Ben. I just can’t stand CNBC. I prefer the soft porn at FoxBiz and the brainy chics at Bloomberg. Like GREEK2ME THE GREAT person I know… oh and THE BEST LIVE GREAT AWESOME MONSTER FLIPPIN NOYPI. (hmm..a cat “scanning” flippin noypi a bit redundant?) Becky had this bloke talking about Supply And Demand. Mat something or other. Ben actually provided more credible insight than this analyst. The move while looking drastic has been distributing since 3/9/11. And in the hourly charts, Since Feb 22. Why so much difference between the daily and hourly charts? Because change happens in the lower time frames first.
Some may attribute these to latest development in the news but in the chart world, it is baked in. Now lets look at this in a hourly. Yes this is omg after the fact analysis. But if you aren’t a maroon, you would understand that there was a progression that the technicals adhered to in order to facilitate the move. How you would play it has been discussed in this blog in many ways already. So for some of you skeptics, try to use those spongy material between your ears not your rears.
Now what about silver, that thing just dove off the cliff!
Judging from this chart, there was no distribution that justifies the huge drop. Where did we say change happens first? Right! In the lower time frames.
Terrifying isn’t it?! If you can actually see the action in this way, you would actually be skeered to try to go long hoping for a new high cuz this thing was screaming. There was this tart the other day in chat claiming that silver was going to the moon and this same tart wanted 57 on the es and the very next day was really bearish. Guess if people followed him, they would require a lot of preparationH.
So what of Supply and Demand. Seriously, no real way to gauge supply and demand in the charts. I mean sure you can correlate data that shows how it does it. Who really cares! Why add the complexity? Perhaps the only reason why you would do it, is to sound like a tv speculator. Who would want to sound like that? It just moves from level to level. Areas of support and resistance. And when the momentum starts to fade, down/up, you will see it before it makes the big move. What is really happening when you see those divergences? Go see definition of Accumulation and Distribution. Spend a little brain power. I mean some of you freely burn so many getting properly smashed. So supply and demand? PFFT!!!