Well, there goes another extreme upside target. We had copper to 3 as a ‘best’ target. It was registered, and has held as resistance. We had silver to 24-26 as a ‘best’ target. It was registered, impaled and blown away. We had gold to 1940, also blown away.
Today my friends, allow me to introduce Mister SPX Gap Fill. Another post-crash extreme objective is in the books. The Dow is still constructive looking but way below its crash kickoff gap but the S&P 500 is more relevant because it represents the US stock market and its varied sectors more broadly.
I do not call tops or bottoms. I manage risk vs. reward and our extreme upside targets are falling like dominoes lately. Back in April I had these targets (copper, silver, SPX, etc.) on radar but they were the extremes. There were other, what I considered then to be more realistic targets, lower. Typical of markets, they take things to extremes.
Risk is very high across most markets in my opinion. Ref. an earlier post about the USD and the Euro. If the Gold/Silver ratio bottoms and rises along with a USD bounce there will be trouble brewing, at least for an interim phase.
