Chart of the Day - Tuesday, February 2nd, 2021

Today's Chart of the Day was shared on Twitter by Jay Kaeppel (@jaykaeppel). It's a daily bar chart of Silver futures over the past nine months. There has been a ton of buzz over Silver this week. The metal surged nearly 10% yesterday as the infamous Reddit mob behind GameStop attempted to orchestrate a similar short squeeze. The funny thing about that is, unlike GameStop, there were really no shorts to squeeze. Large speculators were actually net long Silver futures. Sure enough, Silver was rejected at the August highs and it has already given back yesterday's entire gain. For all the ink spilled over Silver this week, Jay points out that the trade doesn't have to be complicated. Wait until price confirms a breakout by closing above resistance. But until a breakout is confirmed, there's no reason to get involved.