Shock Volatility in Silver

Apr 29, 2007: 2:02 AM CST

In Wall Street, there’s an old saying, “The Market takes the escalator (or stairs) up and the elevator down!”  This statement is exemplified by the action in the Silver futures contract.

We have a slight and creeping uptrend followed by a quick shake-out downthrust to cause all those who bought in to be underwater instantly.  This happened not once, not twice, but three times since last July!


Notice the grinding upwards action that was completely erased within two or three days.  Absolutely insane.

Also, this is one of those instances where stops may not protect you because the move was so swift and violent to the downside each time.

Commodities and futures may be able to make you lots of money quickly, but their volatility issues are probably best left to the professionals.

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