Silver needs to go much further to catch up. Even though it has rallied it is still a bit weaker after having gone parabolic and then corrected so violently.
I suspect that at some point the equity markets will find their footing. Typically this happens after a day of deep selling and capitulation, maybe even 1000 points down on the DJIA intraday. Or some announcement by the government that changes the playing field.
Dangerous markets.
From London Trader - Read the Full Commentary at King World News:
“These guys in London woke up with their asses handed to them and I don’t think some of these guys will ever be short again, if they are still in business. So some of these perennial shorts that have always joined in the party got screwed, I mean literally lost everything. For the ones that didn’t lose everything, they certainly lost an awful lot.
Gold just gapped up and didn’t come back and these guys were heavily short. I believe there is still enough momentum to push gold into the $1,800’s. We are moving into season now and things are happening in China that will impact the markets in due course. Because we have been seeing that point of capitulation, we have been witnessing some dramatic moves as the shorts have been mauled, and as I mentioned, in some cases to the point of ending careers.”
I am wondering if the CME and their crew aren't going to pull another margin increase operation at some point on gold when the time is ripe, as they did after allowing silver to run up higher. JPM's 2500 gold call is making me edgy. I took profits today.
Be careful.
