SLV / Silver

Silver, like the other precious metals and miners has a large negative divegrence which has been signaling a pullback as there are longer charts and bases that imply a large uptrend to follow, but I'd have expected a pullback to be done by now and back long NUGT or GLD.

Take a look at the SLV/Silver charts, I'm almost wondering if there isn't going to be a mass sell-off across all asset classes, although this one , if that's the case, would appear to be intentional.

 60 min SLV clear negative divegrence like we have seen in GLD and GDX.

The 30 min as well with a clear range and anything outside the range (head fake move above) sold hard.

This gives the impression they are trying to maintain a range, for what reason though I'm unsure, whether to sell off the PMs with the market or perhaps something more fundamental.

15 min, again the head fake/false breakout is sold hard.

 Intraday 2 min the trend is obvious, lateral for price, 3C is sloping down

And the 1 min showing the head fake distributed and some small divergences to keep SLV bouncing in the range.

The only other possibility that has crossed my mind is that precious metals are bought on the expectation of inflation. The F_E_D has been increasingly hawkish about rates, sooner and faster. I am beginning to wonder if the market is discounting the F_E_D's new aggressive stance which is driven almost exclusively by inflation, as they say, "Don't fight the F_E_D". Perhaps the market believes the F_E_D is taking the inflation monster serious as almost everything they've come out with lately that has been increasingly hawkish would be to combat inflation (hiking rates sooner than later and more aggressively than previously thought).

For now I'd prefer to stay out of the asset class until something concrete develops. With the size of the base in GDX and GLD, if they were re-positioning, they'd need quite a bit of time and demand to sell in to, often these flat ranges are distribution areas, if that were the case it would mean they've changed their mind of the inflation issue and believe the F_E_D is solely focussed on inflation.

Interestingly, the cure for inflation would be the same that would kill the market and precious metals, so both selling off in tandem wouldn't be so far fetched.