Time to start shorting the precious meta…

Time to start shorting the precious metals?   Back in early 2007, I used to write about the “dislocations” that were suddenly showing up with more frequency as I was worried and started selling partly because the stock market was seemingly entering a blow-off top phase.  By dislocations, I meant any day that the market moved more than 2% intraday, because those types of intraday moves dislocate a lot of both bulls and bears as they gyrate and chase the stocks up and down throughout the day.  The stock markets soon topped out after those dislocations starting appearing with frequency.  On the other hand, there was a streak in 2005 and 2006 where the stock market had more than 100 trading days without a 1% intraday move.  That was a time of bull market rally.

I bring all this up today because silver is down some 5% right now this morning, and has now had a full 10% intraday swing for the second time in two weeks.  Here’s this morning’s chart:

Dislocations anybody?   I’ve been waiting patiently for gold and silver to start their ugly topping process on what I believe could be a blow-off top for their prices that is exhausting itself before our eyes.  Here’s a five-year chart of silver:

Blow-off top anybody?   I’m going to start shorting some gold and silver using their main ETFs, GLD and SLV in coming days.

As for our stocks this morning — it’s flat for us and looking to be a flattish day for the portfolio.  Back in a bit.