20 April 2011

Gold Daily and Silver Weekly Charts - The Sagging Dollar and Blythe's Twisted Knickers

“Rise and rise again, until lambs become lions.”

The move in silver is remarkable, not only in its magnitude, but in the relatively small notice of it being taken outside of trading circles.

We understood the big move in silver back in the day, as a result of the Hunt brothers attempt to corner the market. But what exactly is driving it now? Where is this buying coming from, and what does it mean?

I think there is a an untold story here, and I will be spending a little more time trying to get my mind around it, sifting through the rumours and other stories, to try and get to the bottom of it.

Yeah yeah silver is overextended. There will likely be a correction at some point. And every nitwit in the peanut gallery is going to say "I told you so" even though they told us so when silver was $20.

I have to admit I am absolutely in awe of this move. I would have never expected it to go this far, this fast. I would really like it to take a break, or for some news to come out to explain what is driving this.  Silver is even leaving AAPL behind in the dust.  It seems to be inversely correlated to Obama's popularity, and the Congress' integrity.  Hm, maybe something to that.

I am holding all long term positions and am flat on the short term for the holiday weekend. I could be persuaded to take a position or two for the weekend but only if I see something worthwhile.