So this is a chart of gold. We were losing the wall of worry during this phase. Once gold broke out, once the suppression ended right here and the banking cartel couldn’t force gold back below 2,000, it ignited this huge short squeeze, and we were losing the wall of worry. So we weren’t getting normal intermediate corrections that basically scare people out and build fuel for the next rally. Instead, we were getting sideways churns, and we got a lot of them here, here, here, here.
I don’t even think I would count this as an intermediate correction. It didn’t even drop below the 50-day moving average. So this was just a rather severe daily cycle correction. And when you lose the wall of worry, you’re in jeopardy of entering the final bubble phase. So that’s where we were at here.
And of course, the narrative at that time, especially in silver, was the fundamentals. It’s always the same. There’s always some narrative for why the fundamentals are different this time and why price can never go back down. And then, at some point, smart money starts to take profits and you get a profit-taking event. It’s not a change in the fundamentals. It’s a profit-taking event. Price gets stretched too far above the long-term mean, smart money starts to take profits, and at some point selling begets selling.
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