Q: Big drop in bullion shares but not in bullion yesterday. What do you make of it?
A: There has been a 20% divergence over the last 13 day.
SIL – Global X Silver Miners ETF Chart Source: BigCharts NYSE:SIL
Q: Why do you think this divergence portend a down move? Why not an up move?
A: The divergence portends a change in trend because half the market players, in this case the shares investors,, have stopped buying, The bullion buyers are still buying but that is just half the total market support before the divergence.` Here, the trend prior to the divergence was up so now a reversal to the down side is indicated.
Q: I understand you are saying half the investors just to keep matters simple. Can you give us a approximation concerning the broader underlying trend?
A. Yes, as Martin Armstrong haw confirmed recently: “the Sun is a thermal dynamic system, meaning it beats like your heart to a cycle of about 300 years. Even NASA has come out and had to admit: “[In] recent years, researchers have considered the possibility that the sun plays a role in global warming. After all, the sun is the main source of heat for our planet,” It is amazing for I attended a lecture by scientists from Harvard nearly 30 years ago where the finding of a study into the ice core samples from the North Pole were provided. When I studied the data, I was stunned. It aligned with the 309.6-year cycle of the Economic Confidence Model.