Futures Market - Silver Highlight #5
"Inversion Cycle Index" suggests long position in silver near first half, 1998 low and adds to position.
(COMMENT # 445, 517)
UPDATED 19980616
COMMENT 1998-445
1. We also want to focus on long entry into the market on page 361 where a large weekly "Inversion Cycle" can be seen in the bottom chart (dotted line).
2. This weekly "Inversion Cycle" is also listed on page 129 under the "WIC" (Weekly Inversion Cycle) listing.
3. If you missed the entry on 980602 into this market via the trading technique shown on pages 205-209 of "The $upertrader's Reference Manual", a "second chance" is being provided today on a "stretched version" of this technique.
UPDATED 19980714
COMMENT 1998-517
1. Let's turn to pages 349 and 361 in "The 1998-99 $upertrader's Book of Linear Time Cycles".
2. The first market made both a clear multi-week high and low during the projected week of a Monthly/Weekly "Inversion Cycle Index" ALIGNMENT!
3. The ALIGNMENT is clearly shown on page 125.
4. How should we treat this apparent duplicity?
5. Easy - we look at what the market itself is telling us.
6. For instance, the trend was clearly down into the June lows from the late April highs.
7. Therefore, we treat the turn as a reversal of trend from down to up.
8. Further, the sharp move was in an upward direction.
9. Finally, the "peak" formed 4 days after the major bottom established a new high of only 3 weeks or so.
10. The "trough" was a multi-month low.
11. All price action since the ensuing late June high appears "corrective" in nature.
12. Friday was the 21st calendar day of the correction (FIBONACCI # = 21).
13. The correction has retraced a tad over .618 of the upmove.
14. Yesterday provided a "thrust" entry long signal (see pages 115-116).
15. On a chart, can you see how we traded into, but did not even fill, the mid-June "break-away" gap (see pages 132-133 of "The $upertrader's Reference Manual)?
16. This market appears coiled for an immediate and dramatic upsurge!
17. Note that the most important feature of this interpretation is that the market has turned EXACTLY when it should, has turned sharply, and has corrected the initial surge in subsequent listless trading.
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