Market Curiosity: Exploring Markets And Systems

April 19, 2011

A brief pause for silver

Filed under: Just Watching — Tags: , , — Jeff Fitzmyers @ 7:47 am

A few possible decision points. Silver is rather extended to the upside. Seems to me, after all the volume yesterday, price is either going to shoot up, or correct down to 41.50 within the week. Price could drop to 38.50 (34 EMA) and still be in a healthy uptrend.

Rick Ackerman’s method has a target just under 43.61. Price rising above that a bit suggests a further rise.

James Turk’s take on the S&P’s announcement: The warning from S&P is unlikely to change the spending habits of Washington’s politicians. Given the willingness of the Federal Reserve to monetize the government debt there is no major fundamental change in the outlook for the dollar. If anything it’s a wake up call for the rest of the world that the rating agencies are starting to recognize the reality that the US finances are deteriorating so rapidly, it hardly qualifies any longer for its AAA rating.

Obviously Eric this is going to cause people to look for safe havens. Given that there are no safe haven currencies anymore like there were in the 70’s when you needed to get out of the dollar, the only alternative left is gold and silver. In fact the news about the University of Texas holding $1 billion of gold is clear evidence that market leaders are abandoning the dollar for the safety of precious metals.”

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