This huge gigantic hit on this past Friday was, for the most part, artificial, and it was to save the banks from having to deliver all of that physical silver at a price above $110. But again, this was going to happen either way. If it had been a natural correction, I think we probably would have had a small correction, then a higher high. We would have gotten a divergence in momentum and probably some kind of a rounded top, and then either the sideways churn or an ABC correction. There’s no way to tell beforehand which it would be.
Unfortunately, this just caught almost everybody off guard. Most people were expecting a correction, but we were expecting a natural correction, not something that happens within one day. Now it’s too late. You can’t stop out here. It doesn’t do you a whole lot of good. You’ve already taken the vast majority of the drawdown at that point. So at that point, you’re stuck. You just have to hang on. This is where the typical inexperienced retail-type trader can’t control their emotions. They tend to buy at tops and panic sell at bottoms. For the most part, they’re not able to see the forest for the trees. They almost never expand their chart to look at the big picture.
If you look at the big picture, and I’ve said this many times, the definition of a bull market is that it makes higher highs. Any long trade in a bull market is going to be a winning trade because the bull market will eventually correct your timing mistake. So it doesn’t matter if you bought at the exact top right here. As long as you were long and you don’t have a time constraint, you’re going to have a winning trade because the bull market is going to go on to make higher highs until it’s over. And it’s not over yet. We still have further to go. We haven’t finished a true bubble phase yet…
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