Wednesday, March 30, 2011

The Long Range

March has seen the range of precious metals tested over and over.  Recently the bottom of the range has been dragged through over and over.  The technicals are pointing to gold and platinum to test the top of their ranges.  Silver is already there.  The dollar has never looked worse without making a new low.  I expect one shortly.

Look for gold to move back to $1440 by the end of the week.  I think platinum will be back at $1800 then too.  Silver may push $38.  Oil may break out from $105.  This all means we are very close to seeing the next move in what will be an epic breakaway from all things finance.  Equities may try to hang on to the Trinity's thunder, but picking stocks is a hard thing to do in this environment, and the main reason equities would respond is if the dollar moves lower.  This metric is tried and true.  Is there any other reason to own equity other than to guard from dollar debasement?  There are better investments.

The long range of the PMs has grown old.  The word has spread as to what the future will bring.  Not only are specs piling into the trade, but physical accumulation is still strong.  The move will happen soon, and it could be this week.

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