Evenin’. Hope your week is going swell so far. Mr. Market has been sleeping so far here this week with the exception of the Sunday night ramp up to 1,290. This sure looks like a pretty setup to go short, but I am leaving it alone for now. There’s no edge in the equity markets right now – no extremes either way.
With that, then, I will again alert you to the silver setup that I like as a follow to the crisis in the currency markets. Silver and gold are teasing us right here, but the signs are pointing to the first target of $40 on the first hint of further dollar collapse.
I see the Spring unfolding as a 2-part move: first to $40, followed by a backtest and then a final push to $50 and possibly beyond. No idea where this leaves the dollar but it’s readily apparent that wars, nuclear threats, mother nature, NFL lockouts (joke :)) won’t support the dollar any more at this point.
Don’t get me wrong. The dollar will find a bottom as this 3-year cycle winds down. But the bottom’s not in yet. Not by a long shot.
Anyhow, the consolidation and/or basing going on in silver right now has the looks of the old IBD “high cup and handle.” Once broken, all bets are off. The race will be on to get in and it’ll get fun.
For now, we wait patiently. Once the extremes are met, we sell.
Happy Springtime and trade the extremes – always!