• 288 days Will The ECB Continue To Hike Rates?
  • 288 days Forbes: Aramco Remains Largest Company In The Middle East
  • 290 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 690 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 700 days Big Tech Disappoints Investors on Earnings Calls
  • 701 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 703 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 707 days Crypto Investors Won Big In 2021
  • 707 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 708 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 710 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 714 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 715 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 717 days Are NFTs About To Take Over Gaming?
Trade In Counterfeit Goods Hits Half A Trillion Dollars

Trade In Counterfeit Goods Hits Half A Trillion Dollars

The counterfeit market has breached…

Tesla Struggles To Compete In European Market

Tesla Struggles To Compete In European Market

Tesla continues to catch the…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

  1. Home
  2. Markets
  3. Other

Market On Wire

Market On Wire

"I observed the tightrope 'dancer' -- because you couldn't call him a 'walker' -- approximately halfway between the two towers. And upon seeing us he started to smile and laugh and he started going into a dancing routine on the high wire....And when he got to the building we asked him to get off the high wire but instead he turned around and ran back out into the middle....He was bouncing up and down. His feet were actually leaving the wire and then he would resettle back on the wire again....Unbelievable really....Everybody was spellbound in the watching of it." - Sgt. Charles Daniels of the Port Authority Police Department, referring to Philippe Petit's tightrope walk between the World Trade Towers on August 7, 1974.

As a trader, I can appreciate what a successful dance with risk looks like. Not in the sense that I place my financial health in jeopardy each trade I execute for the sole purpose of taking on risk - more in the approach to successfully carrying out the act and ultimately being strengthened and rewarded by it. There are times when you can feel a sense of balance with the market, even in conditions that present a high degree of difficulty - such as the current market. You are in the flow and dancing with the tape. Other times, you look like Elaine from Seinfeld dancing at her holiday party - awkward, clumsy, spastic - one step behind the music. At times like these it is best to extract yourself from the market and reduce its flow down to a few key components.

For myself, the year could be distilled in one asset - silver. From its parabolic and ephemeral run at fifty dollars an ounce this spring, to its May-day crash and most recent disorderly decline - it has been the canary chirping softly deep within the mine. I believe over the next week, silver looks very susceptible to another bout of selling, with strong similarities and proportions to silver's decline and the U.S dollar rally in 2008. If this is to materialize, it will likely extend the gold/silver ratio to relative new highs, which leads me to believe the equity markets have more work to do within the range - and likely on the downside part of the range.

"The essential thing is to etch movements in the sky, movements so still they leave no trace. The essential thing is simplicity. /That is why the long path to perfection is horizontal." - Philippe Petit

Directly after the time period below - silver went on to loose an additional 30%.

 

Back to homepage

Leave a comment

Leave a comment