Notice where the Dow bounced. Interesting, eh? Our stop took us out of the long term trade. That actually doesn’t look like such a bad position. Violating this low would be bad stuff indeed and there seems nothing to look forward to here except lots of volatility and trading markets. The question now is where is the action?
Below some answers.
Whether this is the move in silver (SLV) or not it is a move and not to be ignored. You should already have been long from previous letters and if you want to add some here the rationale is there.
IEF tracking the treasuries is still a valid up trend. We’ve been talking about it forever.There is no sign of a top yet.
DBA tracks the ag commodities. You can’t even draw a line on it because of the perfect up curve. A new buy signal will be generated at the horizontal line.If the dollar crashes and inflation rages it would be nice to have some synthetic wheat. Even broke capitalists have to eat.
The bottom trend line should be a support for the dollar, and this could well be a bottom forming.
We have been listening to all the scurrilous news coming from South Carolina and thought we would explain it to our readers. All encapsulated in that old Southern saying: South Carolina, too big to be an insane asylum, too small to be a nation.