Raping and Pillaging

  After the fall of the Roman empire, the world slid into the "dark ages" - a period seemingly bereft of humanity. The European continent was ruled by various clans. It was customary when one clan took over another, one of the first things they did - was rape all the women. Not enough to just kill all the men, no they had to rape all the women too. Thats how life went for centuries, it was a crude savage world. They called it the dark ages for a reason. Trading Silver (not owning Silver) is very much like living in the dark ages. There are 2 clans each looking to rape & pillage the other.  Bulls and Bears. Like clans, they draw lines, and stakeout territory. The $27 level, where silver sits right now - is huge. Just look at the chart above. 

 Silver is knocking on the proverbial door of $27 for the 4th time in the last 2 years.  There is tremendous support at that level - which also means there are lots of sell-stops set just below the $27 level. The paper aristocracy (leader of the bears) views those sell-stops like a hungry dog views red meat. The silver price won't just meander across the $27 level, triggering those stops & lightening the bull in the process. No, silver is a much more vicious beast. When it breaks, corrections of 25-30% in days are the norm. The way the banker clan sees it,  It is simply not enough to kill all the weak bull hands with their stops just below $27, no they will have to rape their women too. For this reason, the probability of a sojourn down to $19-$21 area is becoming increasingly likely. 

  I have said it before, but it bears repeating; Silver is a mans market. The corrections & the volatility within are like no other market. The $48 spring high of 2011 has left Silver in correction mode for 14 months now. Silver has the exact opposite problem of Gold. Gold has arguably corrected far enough down in terms of price, but has only been in correction mode for 9 months. Silver, on the other hand, has been in correction mode for 14 months; plenty of time to thin ranks. The problem is prior corrections in this Bull have seen the silver price contract by over 50% from peak to trough. We don't have that here. We are 14 months in, but silver has only contracted 45% to date. The banker clan, who control this market, will not be satisfied with a correction only in terms of time. Remember: they are raping & pillaging. When they rape, they want both tits in their mouth. TIME and PRICE. Only a trip to the $19-$21 range would qualify this a man size correction (60%) in terms of price. 

 The psychological pain on tap for the bulls the next few months, may well be unbearable. A trip down to long term support in the $19-$21 range will have the effect of thinning the bull ranks significantly, to be sure. The bear camp, will be growing, with technical traders & momentum traders piling on the short side. Observe the manner in which silver has bounced off $27 in the past, only to gather itself & attack that level again & again.     Each time from a lower high. This has left a descending right angle triangle on long term silver charts - an ominous pattern. Meaning, if and when $27 fails, look out below. 

  For all the reasons above, Bagholder is of the opinion long term silver bulls are about to get raped, yet again. You may have noticed an overtly dark tone to todays blog. Speaking as the staunchest of bulls, there is widespread apathy in the bull camp. This, in and of itself, means news isn't all bad for the bulls. If ever there was a recipe for higher prices, thin apathetic bull ranks & swelled bear ranks is it. Those things only exist at major bottoms. We here at Mytwocent$ will be scaling in deeper, all the way down. We suggest you do the same……