So the truth is silver is starting to move and this setup is getting interesting. Again, we’re talking from a technical analysis, paper trading standpoint. After weeks of choppy price action and failed breakouts, silver is finally pushing through some key levels. At the same time, positioning looks pretty washed out, and across asset relationships, that are starting to actually stretch out, okay? And that’s typical when squeezes begin. So here’s the big shift. Silver already broke out of its downtrend last week, but it stalled around 76 bucks. Some people think that that is no longer going to be just a stalling.

Yesterday, it was ripping higher, up about 5%, breaking that level and reclaiming the 50-day moving average. Again, this is information for traders. If silver clears $80, this could turn into a full blown squeeze. But here is what actually really matters. Silver’s been trading like a risk on, risk off asset, closely tied to the S&P 500. Every day, the S&P’s up, silver’s up. Every day, it’s down, it’s down. And recently, that relationship has sort of diverged. At current stock market levels, silver should be about 15% higher based on past behavior. Well, that gap, that’s potential upside.

Now remember, silver used to be the go-to speculative trade a couple of months ago, right? The late January sell-off crushed sentiment, but didn’t completely kill that speculative edge. And here’s something most people are missing. The past silver rallies have often lined up with big moves in the Korean market, the KOSPI. With that market heating up again, the question is, does silver follow? You know, you’ve got to think that’s the big question. You know, also, the last major melt up in silver started right after a volatility reset back in December. Now we may be setting up for something very similar right now.

Only time will tell. Am I trading this? No. But I wanted to bring you the most recent information. And I want to close in this. During the last run up, money flooded into silver ETFs. But much of that has now been flushed out in the current or recent drop that we’ve seen. And that kind of reset actually clears the deck out and it creates the fuel for the next move higher. But I want to warn you, again, the relationship between the S&P 500, the Dow and silver has been very correlated. When the stock market’s up, silver’s up.

When the stock market’s down, silver’s down. This has happened since the start of the Iran-Israel-US war, okay? So with all of a sudden, with the blockade happening and the stock market inching up, don’t let that price of silver inching up confuse you or fool you. Because if the stock market, all of a sudden, bad news comes and it turns down, I believe silver will do that as well. Alright, with that being said, thank you so much for watching. The Economic Ninja is out. [tr:trw].

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