Silver (SLV) capitulation volume?

What do you know, just after I finally get around to writing about the blast higher in silver, a day or two later it’s pulled back 8.1%! Bull markets can correct quickly, sharply, and painfully. While I won’t pretend to know if just a two day smashing is enough and that SLV will head higher from here, I can say that the enormous volume suggests we are closer to finding the bottom than not. I might look to add some long term LEAP options on SLV n the next few trading days, maybe as early as Monday. One reason is the volume, but the other is that the last time SLV was in such a strong uptrend was back in 2016, when the metals and miners screamed higher, but even then there was a sharp correction in the month of May 2016. For SLV, it meant a retreat of 11.7% if I recall correctly, and it took place over a couple weeks. If anything similar occurs, we are nearing another chance to add to positions, or take on new ones like the SLV LEAP options, or maybe some more silver miners. As always, the account statements don’t lie, so you will know what trades I decided to make.

One last note, it wasn’t just SLV with monster volume, but speculative trading vehicles like JDST, the short gold miners triple leveraged etf has also had a record breaking volume day yesterday. This fund is used for short term traders, and they are often trading on emotions more than anything else. Again, this is another sign we are closer to the bottom of the correction than not. Perhaps we see another couple days lower next week, but I will be looking to add to my positions into the weakness. If they are not weak, I will wait for a bounce that peters out and pulls back again, before adding. If miners and metals just open higher and run straight out of the gate on Monday (not my prediction), I will not chase prices, instead just keep all my positions are they are. See the chart below…