When silver went parabolic on April 25th with an RSI exceeding 90 as I mentioned on that day, it was a clear sign that the short term end run to the commodity move was near as silver was exhibit A for the QE2, non $, global growth trade. Now the reverse is of course upon us where QE2 is ending, global growth is moderating (certainly in the US and interest rate engineered in Asia) and the US$ has bounced off the bottom. While I believe this commodity correction will last months and will take the broader stock market with it, the weakness sows the seeds for the next move higher in commodities at some point as it means the Fed will be even more reluctant to raise rates/sell assets and the US$ will eventually resume its long term trend. Until then, strap on the seat belt.
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