Tuesday Oct 2 2012
I was visiting with one of our alert readers this morning and the topic turned to silver miners, let's take a look.
Some of the individual silver miners like CDE have doubled which just goes to show how tough it is to pick one big winner from among a dozen candidates. SIL at least mirrors the group performance so I used it for this example.
The parabolic can serve an additional purpose of helping identify Elliott Waves. I outlined a guess at the waves here. If this is correct SIL is now in a fifth wave of a third wave. If the fifth equals the first of Wave One, 26-27 may be in the cards. This would also explain the rising strength of the VIX. If a fourth wave is around the corner for mining stocks the VIX would be stronger.
As always I am no expert in Elliott Wave there are other sites that do this on a daily basis. But when the mood is strong Elliott tends to track the mood.