A view of the metals by daily chart.
- SLV is above the 50 day averages. Next objective would be to break the trend line. There is some volume creeping in, which is good.
- GLD looks like a bear flag, but we’ll see. A rise above the 50 day averages and trend line would argue otherwise.
- The SLV-GLD ratio (a leading indicator) has popped upward to the trend line.
But the problem is those trend lines. Another problem is that the precious metals may be one happy government resolution away from another drop. We just do not know.
If they are getting the ‘fear’ bid today, they will probably get the ‘relief’ dump if and when these people in Washington decide to end the grandstanding and do what they usually do, choose more debt. At least that is what has happened routinely over the last year when news comes that is perceived by the majority to benefit the economy.
I have laid out some parameters to the upside and downside while trying not to manage you into the ground. If you have any questions, just pop me a mail.