So is this it?

25/04/2011 by Philinje.

Exuberance in silver earlier today in Asia was amazing, causing a move to $49.80 roughly. When NY opened, the traders were pretty cranky after a long weekend and have been selling off all markets, but silver got taken down by $2.50! Amazing, but getting to be commonplace. Nevertheless, is this it? Meaning, is a top in?

It seems that a certain target was hit, but it’s hard to say if this is the beginning of a decline. It is still the case that a cycle date is coming up around May 12. We could see a bit of consolidation here and then maybe a double top in mid-May. Or silver could head to the mid-50’s. Gold, on the other hand, could head to $1600. It all depends on the dollar.

Here is an excellent analysis of what could happen, based on the newly started dollar crash last week, which is threatening to reach its all-time low in the next couple of weeks.

http://thetsitrader.blogspot.com/2011/04/gold-c-wave-tops-and-us-dollar-crashes.html

In other news, China did not re-value its currency over the weekend. Instead, it is talking about diversifying $2 trillion of its $3 trillion in foreign currency reserves, meaning it will use a massive amount of dollars to buy lots of other stuff, including gold. Undoubtedly, that had something to do with the spike up this morning. But after the $2.50 drop in silver, does that news go away? I think not. Check out what Zero Hedge has to say:

http://www.zerohedge.com/article/china-proposes-cut-two-thirds-its-3-trillion-usd-holdings

At this moment, it’s noon in NY and both gold and silver are bouncing back nicely, and both are already above their closing highs of last week. We will have some turbulence on Wed potentially because of the Fed meeting, but once again the bear raids are looking pathetic. Isn’t this exciting?

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