Wednesday, January 25, 2012

25 Jan 2012

 As you can see and already probably know, we are hitting extremes from the best of times during the past four years.
TSV still low, but heading to 2nd standard deviation which has apparently worked as peak recently.  RSI is high as I continue to point out.

Like I said yesterday, VIX remains in its channel and heading to its long time support of around 16.50.  This means we need some serious dry-up of excitement to both sides. 

I was very tempted to go long EXK and RIC today as they seem to have broken a triangle to the upside, but considering the overbought indicators above, I decided not to.  I may regret it as silver and gold also broke the resistance lines I had drawn for some time now.  There is a possibility that they both fail to maintain that break, but long term I remain an extreme bull.

The economic reasons for the fall of Rome:  don't miss the chart of debasing the coins chart.

Elizabeth Warren on Jon Stewart.

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