Pictured: Admiral Isoroku Yamamoto as played by Soh Yamamura in the movie Tora! Tora! Tora! In the scene depicted, he considers the implications of the successful Pearl Harbor attack.
Silver is a Sleeping Giant
In brief:
1- Real Silver volatility hasn’t been this low since 2007.
2- This taken alone implies nothing. We could continue flatlining forever theoretically. But wow.
Have found that when vol finally does break out, there are usually so many conditioned non-believers playing that it’s easy to “hop on” the opportunity to get in regardless the direction it goes. Note the last time vol was this tight: the mkt first broke up.. then down hard before the massive rally truly began. This is an example of uncorking coiled vol. “Fade” the direction if you like when silver moves outside the monthly Bollinger bands, for “first way wrong way” may indeed apply: but don’t expect this hibernating market to go back to sleep when it finally wakes up. Vince Lanci for the LGW Report Vlanci@echobay.com
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