Wednesday, March 14, 2012

14 Mar 2012

 A little surprising that the McClellan Summation index actually declined today at a magnitude greater than it increased yesterday.  Meanwhile, the Dow closed green.
Shortest term has begun to head back down again.

A lot of people are mentioning that Treasuries sold off hard today.  This is true, but let's not get too carried away.  If it takes the stock market selling off in order to put a bid back under Treasuries, it will happen.
What's that saying?  Cut off your hand to save your arm?

Gold and silver, as I suspected have reversed hard after breaking or nearly breaking their trendlines. That price action as I pointed out a few weeks ago, is very bearish and that has become apparent.  They both did something similar in 2008 where they retraced all the way to sitting on top of what was the descending peak resistance line.

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