As I mentioned the other afternoon, it looks like it won’t be long now, for the dollar and the precious metal markets to once again take different tracks. And that should mean good things for the miners, as evidenced in what appears to be an approaching turn in the $HUI Gold Bug Index.
Turns out this whole Greek fiasco is becoming something of a mud-stomp for our swarthy souvlaki-eating, Ouzo-swilling band of molotav cocktail pitchers, and it appears that the European Community might even be angling to kick the Greeks out of the Euro no matter what. Hey, as crazy as it’s become in Greece, at least they don’t have Federal officials inspecting their kids’ lunchboxes for “nutrition violations,’ yet, eh?
I say so be it, and let it be done. Either way it’s apparant that Big Brother Bernank is not going to let some rock-throwing, Fiat-torching proto-Spartans ruin his very stable run into the 2012 elections (and yes, he’s running too, believe it). So be prepared to be awash in liquidity here. Drachmas? Schmachmas! Take some digital dollars and shut up, already.
Around 8 am this morning, currency traders tried to make the dollar go “pop!” but gold and silver are currently calling bullshit on all that. Yes, these three can sometimes rise together like the greatly undervalued kings of the comedy stage, Larry, Moe & Curly (not really) in a Depression-era movie house, but more often than not, this alliance is proven false within a matter of days, if not hours. As I type this, mean-spirited Moe (the US dollar) is taking a pratfall from it’s earlier spike over $79.60, and Larry Gold and Curly Silver (the fat, dumb one), are careening higher.
As I mentioned earlier, I will also be looking for a turn in the miners here. My weekly chart shows us approaching the bottom of that channel I pointed out the other day:
And the daily chart shows an even more clear bottoming in the stochastics. Note also we almost touched the bottom of this (admittedly loose) consolidation triangle yesterday as well.
Quite a few of my stocks popped in the last hour of yesterday’s trading (along with the whole market, of course), including my March Madness pick, AUY.
I had thought that contest was starting this Friday, for some odd reason that seemed truly logical only in my own beleaguered head. I think that launch would have been perfect, but in the meantime, I’m in a bit of a hole, so be sure to purchase as much AUY as possible here, and to short that hideous purveyor of ethically questionable time-share vacations, AWAY. Thanks in advance, and…
My best to you all.