I would like to step back and take a serious look at silver. I believe the chartology is beginning to speak to us that this is a huge opportunity that is setting up right now for those who can be a little patient. But first, let’s take a quick look at the market.

That’s a screenshot I took off of the lead headline on Drudge yesterday, so the public now knows…the cats out of the bag. That’s right you heard it here first as weeks ago this theme was outlined and made clear that it was coming our way in a hurry. The PM markets responded accordingly.

In the weekend report, it was pointed out that we should all keep out eye on the VIX. If the VIX stayed elevated expect more trouble for the stock market, it dropped below 20 then we could expect the market to have a decent rally or even recover its losses of the past 10 days. Well, we got the move below 20 and the market is starting to look a bit better as the chart below shows.

Dow– Note the mini-break above the consolidation

I have made my opinion clear that the general stock market could regroup and recover, but I am not interested in playing it. I see too much opportunity in the upcoming bull market in the PMs and the resource sector.

Novo Wakes Up

Another little surprise today was Novo resources busting a move. Again the weekend report noted that it appeared that the worse may be over and it was prepping to reverse its trend and start heading higher. Hopefully, it will have the legs to break above the channel in the chart below.

Norilsk wasted no time today to reassert itself. This is our little core nickel play considered a safe way to play the battery metal EV theme.

Big Base=Big Move

Getting Serious About Silver

I have to tell you that this realization has just hit me like a 2X4 in the head. Frankly, it is totally counter to my understanding of the fundamentals of silver and how it fits in the big picture of the sequence of which asset classes perform first in a new bull market. It has always been my understanding that silver is the latecomer to the party. That’s the way it has been in the past. After all silver is chiefly an industrial metal since its traditional monetary role has faded. So when an economy enters a recession silver should weaken right? After the devastating bear market from 1929-1932 silver actually bottomed 6 months after the DOW. Whereas the DOW completed its 89% decline in July 1932 silver continued declining until Dec 1932. When the gold stocks bottomed in Jan 2016 the silver stocks severely lagged the gold stocks for the first 6 weeks of the rally.