Adam Hamilton: New Silver Upleg

Let’s start with silver itself, rendered in blue here and slaved to the right axis.  In the context of its broader secular bull, the recent 31.9% rally in 2.7 months doesn’t even stand out.  In the final month alone leading into its last upleg’s top in April 2011, silver saw a similar gain in far less time.  But that surge happened from highs as greed waxed extreme, the polar-opposite sentiment environment from last summer’s lows.

And out of major lows after major corrections, major new uplegs are born.  Silver has enjoyed 5 of these since 2003, all marked above.  Leading into early April 2004, silver climbed 71.5% higher in 6.0 months in its first real upleg of this bull.  After that silver consolidated for the next year and a half or so to eradicate the excessive greed seen at that first topping.  And then speculators finally returned and silver soared again.

Over 8.5 months climaxing in mid-May 2006, silver blasted 124.0% higher in this bull’s second major upleg!  Then once again after being bathed in such greed and euphoria, silver corrected and consolidated for well over a year.  Finally in the summer of 2007 silver sentiment was bad enough to spawn its third major upleg, which crested at an 80.5% gain 6.5 months later in early March 2008.

to read the entire article follow the link below:

September 21, 2012 (Source: Zeal Speculation and Investment)

http://www.zealllc.com/2012/newsilup.htm