Tuesday, July 10, 2012

10 July 2012

I was wrong. Medium term definitely did not bounce today.  It remains overbought.  This rally really painted the bulls into the corner.

I've seen some recent articles saying that silver should have weak performance during a recession.  They all seem to leave out that it is already down about 50% from its high.  I said it was a sell at its peak, and now I am not so sure it is a sell as the pundits seem to believe.  If we break the long term upwards trendline, then yes, it could sell off more.  But until it decides one way or another, all bets are off the table.  Due to the already extended sell-off, odds are beginning to look better to the upside.

Short term getting oversold again.  It is not at extreme levels.

"The expected never happens; it is the unexpected always."
John Maynard Keynes 

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