Archive for 07/12/2010

Just like the old days

Sharp correction in process - while equities are rallying the big boys seem to be banging hard on silver and gold. These kinds of declines used to be pretty common and have become much less so. But it’s a good reminder to keep on your toes.

My suspicion is someone really didn’t like silver above $30. There is a theory that above $31, a massive short squeeze could erupt. Anyway, this could be over as quickly as it happened, or possibly we could see some consolidation into end of year.

Mid-Feb 2011 is the target for this current peak, so we ain’t there yet. Maybe we’ll see some year-end selling in commodities, which have rallied hard in recent weeks. But that’s a pause before a blow-off top early next year. That’s my favored scenario, but it’s just one possible outcome.

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