Charting PMs, it looks like prices are going higher, and since PMs lead all assets, then US equities should rise, and the dollar should fall. Yet, the fundamentals are saying that there should be a pullback. There is QE Light, but this should hardly mean the usual exasperation that the dollar has felt this year. So which one will win out, the charts, or the fundamentals?
There has been no significant selloff in gold over the last few days, and silver has shown very bullish tendencies. Silver has tested daily support over and over again. Oil has broken out. Yet, still, the fundamentals are bearish. The dollar has a little room to maneuver on a technical basis, especially considering the Yen and Euro are weak, too.
But technicals have been the superior to fundamentals for years now, so will we see the sharp rise in US equities now instead of this Fall, like I have supposed? The bet is on gold, and her sisters Trinity. Oil will also dictate the terms. Precious metals lead all assets, and this is the stone cold truth. Watch them to know the next move.