Kind Words from Terry Laundry, Founder of T Theory

"Parker has sent me what I consider to be the most important refinements to T Theory I have ever received from anyone in an e-mail . . . which he calls Tweaking the 13th Advance Decline T." September 29, 2010

"Parker has sent me a very interesting concept which is the NY Advance Decline line divided by the put-call ratio . . . What he's done is introduce the idea of sentiment." September 15, 2010

"Parker discovered the Money Flow Ts . . . This is something like the Holy Grail in T Theory. You are always looking for something that will help you refine the peak date." October 17, 201

"Money Flow Ts are probably the greatest new thing I have seen in 20 years in terms of time symmetries." December 5, 2010.

Monday, April 25, 2011

$$ Where do they come from?

There's an expression at the poker table among the grinders when someone sits down and proceeds to lose a bunch of money with poor play.  The expression?  "Where do they come from?"

Today, 188 million shares of SLV were sold.  Which by definition means 188 million shares of SLV were bought.  Today's volume was a record for SLV, and dwarfs GLD's biggest volume day (79 million shares on December 4, 2009).

Bear in mind, SLV's daily RSI is at 88, and the MACD is at an all-time high.  Silver is more than 80% above its 50-week moving average, a record for the bull market in metals that started in 2001.  Silver has closed higher for 8 days in a row.

These tell-tale signs are not hidden.  Everyone with two eyes can see them, including today's SLV buyers.   Today's action was classic distribution. Which leads me to ask:  

"Where do they come from?"

I guess there's no fever like Silver fever.  I don't know about you, but at some point soon there will be an excellent opportunity to take the opposite side of the trade from today's new silver bulls.
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6 comments:

  1. CycleguyApril 25, 2011 at 7:43 PM

    Parker, do you think such action will make the MFI unusable on SLV?

    ReplyDelete
  2. usacoderApril 25, 2011 at 8:28 PM

    "there's no fever like Silver fever." - good one.

    ReplyDelete
  3. Tim MackApril 26, 2011 at 6:47 AM

    Yup, a great short is in the future, Silver is the poor mans gold and the poor man (read; inexperienced traders) trades with lots of emotion so there should be a mass exit once prices turn south.

    Speaking of poker (and trading), this is worth a watch: Her book is on my “to read” list.

    http://wallstcheatsheet.com/interview-knowledge/poker-champion-annie-duke-on-characteristics-of-successful-poker-players.html

    What concerns me is gold. I thing the USD$ holders are buying gold as a flight to quality in order to bail out of $ and are scared of bonds. This appears to be a “no confidence” vote by the major players (not that I blame them, but the out come will not be pretty in the US).

    ReplyDelete
  4. PositionSizingApril 26, 2011 at 7:46 AM

    Hi Cycleguy -

    I don't see a problem with the MFI on SLV.

    ReplyDelete
  5. Big Bang InvestorMay 5, 2011 at 12:57 PM

    Parker,

    In light of the recent decline, do you still see a top in GLD and SLV in mid-June?

    Thanks.

    ReplyDelete
  6. RobWMay 5, 2011 at 6:43 PM

    This proved a well-timed post!

    ReplyDelete

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