Tuesday, March 15, 2011

03.15.2011



Everything is plummeting today!




Perfect support found this morning at the "MUST HOLD" level to keep this rally alive. This is the rally from the breakout that occurred a little under $32.00 per ounce on from late February. Everything was selling off today as gold was taken down as was oil and the stock indices. Wall Street gives many reasons for why these markets are behaving in the matter they are and for me this is Bull%R#$%. Ok, i don't want to swear, but it is obvious that it is the big wall street style world financial bankers that are doing this. For me to get out of Silver, I need to have the price move properly and there is much more room to the upside for this to be the case or some real bad fundamental news to get me out. Some example of bad news items would be examples like our currency not being fiat and us not being enslaved to debt. This one I highly doubt will ever happen as I highly doubt that the real supply and demand justifies lower prices and this is not the case right. There are several reasons to get out of silver including aliens coming from outer space and sending a billion pounds of silver our way. This would increase the supply so much the value of it would diminish. Well, it's a strong play for me to hold this metal when those are the realistic reasons for me to be cautious on a fundamental level.


Within' the gold to silver ratio the technical pattern shown on these charts is "The Double Bottom" on the Gold priced in Silver and a "Double Top" in the Silver priced in Gold. This is bullish for the ratio to go higher and bearish for silver priced in milligrams. If we end up having a test towards $31.50 that would be about a ten percent decline. It would be safe to state that if this were to take place that gold would also go down, but not as much. This would mean a possible move to the 43-44 area on the ratio. The trend on a technical and fundamental level is for the ratio to keep going lower, but ultimately if the powers that be in this world are able to bring much lower silver prices and actually execute the play then we will see moves over 50 to 1.


This comparison shows how much we are outperforming the 1979 rally from the same amount of days. To keep this a float then either a correction through time for three to four weeks would be needed to meet up with the 1979 level getting to the 100% area from their lows or it could retrace a little bit more where it can find a bottom and then keep on moving northwards. Then again in 1979 the first few months were nothing compared to what happened at the end which is very normal in these high fundamentally driven markets. To me it just seems very co-incidental that all these events are playing out as they are as the comparison that lead up until we came to this point was very similar. That is because in 1979 the market had already been in a bull market for seven years with some decent gains and a large time correction right before the breakout. This time it had the same thing as it rallied from the $4.00 level less than a decade ago and from 2006 to the 2010 it was correcting through time over the long term time frame. The range from this period was from $10.00 and $20.00 and if this comparison can stay active then that should result in 700% gains from the $17.75 breakouts in August which would be around $140/oz. The reason why the timing is so well as this would occur over the summer time frame as all this earth changes is possibly coming to a halt or the conclusion of. I personally hope that it does end this fall and the dollar will be a thing of the past as we wait for Santa to come down this years chimney. Time will only tell with this and when you "adjust to the message of the market" that is basically when you see new stuff happen and things not quite play out as expected then you can ask yourself what it means and where can you from here with this new information. Thank you for stopping by the blog today.

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