Wednesday March 23, 2016
Imagine throwing a ball into the air. Now imagine that we can track both the speed of the ball AND the change in speed, that would be the momentum (first derivative) of the speed.
The Speed achieves maximum velocity shortly after lift off. The change in speed peaks early. The change in speed will reach zero, no more change while the ball is still moving up.
At the peak, apogee. the acceleration or momentum goes to zero as gravity takes over. Then the speed goes to zero, then the course is reversed.
The same thing happens in markets. The lift off was February 11 for stocks and now the momentum is slowing some 2 months and 14% later.
I suspect the momentum is fast approaching zero if we are not there now.
Silver Stocks
All silver stocks are down more than 4% this morning.
Consider this cheery assessment from John Murphy two days ago.
COMMODITIES CONTINUE TO RALLY ON FALLING DOLLAR AND DOVISH FED -- SILVER WHEATON LEADS SILVER ETF HIGHER -- SOUTHERN COPPER CLEARS 200-DAY LINE --
Southern Copper is down this morning by 2.36%. I am puzzled how John has gotten to excited after a rise from 21.5 to 29, especially given the reversal on the day of the high.
DXD 2x Bear Fund for the DJIA
Meanwhile the opposite picture is at hand in this bear fund. Maximum downside momentum has been achieved and this looks like a buy.
Last friday I sent out an e mail that I had sold most of my CLF, USO, SLV. Then Monday I sold MSB, all at a profit. I was expecting a turn down that appears to be here now.
I also just sold CFR at a profit. I think all these can be re purchased at lower prices by the end of April.
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