You will probably be seeing a lot of charts like this all over the internet going forward.  The now obvious breakout in silver is going to get a lot of airplay as players take yesterday as a signal of a coming bullish phase.  I mean, think about the Black Boxes and their ‘if/then’ code.  What might the ‘then’ statement do in response to this week’s ‘if’?

The breakout is not surprising.  NFTRH had been noting for the last many weeks that silver was going to “break out or break down” and that it was going to do it in this general time frame.  Since I am not a Swami I refrain from making guesses, but simply try to dig up as much pertinent information as possible and get it into the analysis. *

Last year we used the same method on the CCI commodity index and thus, were among the first to note the bullish moves in the Agricultural, Natgas and Uranium early this year.

It is amazing how each of the above charts waited until the last minute, right to the very nose of the Descending Triangles to break upward from long term support.  That’s our markets; always taking things to extremes in both time and price it seems.

Silver is down this morning in US pre-market, which is cool because I sold some calls I had bought just the day before by absolute dumb luck, taking a 70% in a day profit.  Had to take profit somewhere on that moon shot.

But more important than the trading regimen that has personally been in place for the last several months, I look forward to a new phase that can be managed in a more routine way than trading all the time.

If yesterday was a sign that the big bottom process is a good one, there would come a trend out of this bottom and those are managed with much less trading.  Yes, there will be pullbacks (sometimes dramatic ones) to be managed I am sure.  But it would be a theme more along the lines of skimming profits and buying pullbacks as opposed to raw trading in and out.  Playing a trend is by far my preference because in contrast to the silver options trade noted above, I am a spotty short term trader at best.

Being a macro market manager, I much prefer trends that I can identify and manage.

Back on silver’s script, if it follows CCI’s blueprint (just total conjecture folks) its initial leg up would take it to around 30.

* For reference, here is the chart from NFTRH 295 noting the hint toward a breakout last week…