The euro has also broken out upside. It still has a high correlation with silver, but not quite as extreme as it was when US$31 silver automatically meant US$1.31 euro.
The US dollar has broken down. Now, what possible reason could there be other than QE3? Remember that right before the US was downgraded to AA+, the market was selling. Because insiders knew.
The Dow Jones has broken above neckline resistance and is targeting 12,900-13,200.
Gold, however, has not broken out. The gold/silver ratio may be about to make a major reversal in silver's favor.
Natural gas is extremely oversold and should soon see some sort of bounce. I am hoping for US$2.44. Natural gas is still likely to fall much more, perhaps even below US$1.00 a month from now. My target is US$1.60, though. There is simply a huge supply thanks to fracking technology combined with little demand in this warm American winter.
Disclosure: Long physical gold/silver.
0 comments:
Post a Comment