14 May 2012

As surprising as it may seem, none of the first six timeframes (ranging from 1 day to 34 days) I track is oversold yet.  

All of the indexes that were above previous lows are below the previous lows now except for the percent of stocks over their 40 day moving average.

Gold has been aggressively sold since it broke its long term trendline.  I have made two target predictions on this blog - $1420 and $1250.  I do not think the long term secular bull market is over.

Silver is nearing its trendline from the period late 2008 to late 2010 when it started going up at a higher rate on the heels of QE2.  I don't know if that trendline will hold, but I would imagine it would try bouncing there.  If it doesn't the next target is around 23.  I do not think the long term secular bull market in silver is over either.  Although, looking back, I should have considered selling my physical at 48 when I mentioned that it was a dumb time to be buying.

"Enjoy present pleasures in such a way as not to injure future ones."
Seneca (5 B.C. - 65 A.D.)