Published on Tuesday, 06 November 2012 22:27
Written by Super User
The world is broke and it's not going to change. You can't turn on the TV or open a newspaper without seeing or reading about a financial crisis. Fortunately for us the dollar is still the strongest currency in the world and all other currencies are measured by its value. This is why you are seeing a rally in the DOLLAR INDEX. Unfortunately a flight to quality rally has never lasted for a long period of time. In fact, all it does is delay the inevitable. Metals are going higher even with the DOLLAR INDEX moving through resistance which is 80.50. This is the start of a new era. From now on metals will not necessarily trade up and down with the DOLLAR INDEX. More and more people around the world are starting to see precious metals as a safe haven for their falling currency and inflation. You should be doing the same thing. For those who think metals are overpriced, your wrong. All one has to do is read and see that the whole world is bankrupt. Metals are going to outperform anything else so you better have some. I believe silver(SLV) will become twice as much in demand as it is today. This month alone it doubled in volume from the previous month, which was a record, with almost 800 million shares trading and I believe it's just getting started. You will see SLV above $30.00 soon. We are still flat equities looking for BIG MONEY to tell us what to do. Support is 10,700. If BIG MONEY is going to show up, it will be slightly below that. Bonds have also rallied from their lows because of flight to quality. Sooner or later the powers to be will figure out that we are also broke and you will see a huge sell off in bonds. But for now the 30 bond is holding above 121.00 which is support. CYTX is at support and once again is waiting on fundamental news.