15 September 2010

Gold, Silver, Miners, and Big Daddy


Gold Daily

Gold is on the verge of breaking out of the handle of the cup and handle formation. A pullback and consolidation of the recent gains would not be unusual. However it will be most interesting if US stocks correct, and there is a flight to safety in gold. Let's see what happens.



Mining Sector (HUI)

The miners have not yet confirmed the break out in silver. This may be because of the thinness and uncertainty accompanying the rally in US equities, despite the impressive levels reached thus far.



Silver Weekly

Silver is a juggernaut having broken out of its big wedge, targeting 22. If the stock market corrects we should see a pullback in silver, but it may be short lived.

I cannot help but notice that the commodities in general have been rallying since the big banks started closing their proprietary trading desks.



US Ten and Thirty Year Treasuries

Since we said they looked toppy, the bonds have been in a swoon.

This will reverse if the stock market rally abates. Even with the low volumes they are shoving a lot of portfolio allocation around the plate, looking to hand off the hot potato in stocks to mom and pop, at the top.