• 6 hours Toyota Tests Solar-Powered Prius
  • 24 hours Why The Gold Rally Flatlined
  • 1 day The Uranium Sector Can’t Catch A Break
  • 2 days Upcoming Fed Meeting Has Investors On Edge
  • 2 days Global Gold Sector Outlines Responsible Mining Principles
  • 3 days China’s Giant Vampire Fund Loses $120B
  • 3 days McDonalds To Roll Out Robot Drive-Thru Clerks
  • 3 days Savvy Investors Are Betting Big On This Little Data Company
  • 4 days How The Government Is Wasting Tax Money This Year
  • 4 days Supply Concerns Halt Expansion On Tianqi Lithium Plant
  • 4 days The World’s Biggest IPO Is Almost Here
  • 5 days The Relatively Of Money And Happiness
  • 5 days Wall Street Unfazed By Recession Fears
  • 5 days SoftBank Urges WeWork To Pause IPO Plans
  • 6 days Anti-Aging Market To Hit $55 Billion
  • 6 days JPM, Morgan Stanley Take Advisory Roles In Aramco IPO
  • 6 days Are Bonds In A Bubble?
  • 7 days The Unknown Media Giant Taking The World By Storm
  • 7 days From Millennial To Millionaire With One Simple Trick
  • 8 days The 5 Most Expensive Art Pieces Ever Sold
Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  1. Home
  2. Markets
  3. Other

Silver Peak Likely Only After Dow Crash and Major Bottom

Last year, I produced the following chart and commentary (italics) to show how the Dow could crash like it did in 1929:

Dow Jones Industrial Average Monthly and Weekly Charts Chart
Larger Image

Above, is a fractal comparison between the current period (1998 to 2015) and the 1920/30s, for the Dow (charts from tradingview.com). Follow the two patterns marked 1 to 5. I have also indicated where silver peaks and bottoms occurred, to show that both patterns exist in similar conditions. This means that there is a strong likelihood that the crash will occur.

If the Dow peak is in (at point 5), then it could free fall soon, much like the October 1929 crash. This could be the greatest Dow crash ever. Therefore, the greatest silver rally could be on its way (why?)

Here, I would like to add a little more.

Notice how the Dow peaks at point 3 (in both charts) came relatively close to a silver peak. Furthermore, notice how the Dow bottoms at point 4 (in both charts) came relatively close to a silver bottom. This shows that silver, and the Dow have been roughly moving together during those relevant periods (in the 20s &30s and the current pattern).

However, after the third silver peak shown (on both charts) there was a big divergence between silver and the Dow. For example, while the silver peaked in 2011, the continued to rally until 2015. See chart of the current pattern to illustrate the moving together and the eventual divergence, below:

Weekly Silver Chart
Chart form barchart.com - note the Dow is the blue chart and silver is the green & red one

The divergence is what should be expected, since silver and the Dow actually moves in opposition in the long-term (contrary to what many believe). This adds to the likelihood that the fractal in the first chart is valid.

So, what significance does this have for the silver price in the future? It will help to determine when silver is likely to peak during the coming silver rally. Based on the fractal analysis on the first chart (above), silver is only likely to peak some time after the next major Dow bottom.

Warm regards,

 


For more of this kind of analysis, you are welcome to subscribe to my premium service. I have also recently completed a Long-term Silver Fractal Analysis Report.

"And it shall come to pass, that whosoever shall call on the name of the Lord shall be saved"

 

Back to homepage

Leave a comment

Leave a comment