It’s not every day that you get to witness a four standard deviation event. Last week was one of them. If a stock moves 4 standard deviations above or below its mean you know that there is a 99.994% chance that it should reverse. Last Thursday our silver technical indicator flashed a warning that we were 3.97 standard deviations (just a hair shy of four) from historical averages, slightly higher than the last peak 5 years ago. Looking at prior parabolic moves in silver, what most likely lies ahead is silver’s destiny with its 200 day moving average (200d MA) which currently rests at $28.79 an ounce.
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