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Re: sleepingGiants post# 209

Friday, 06/17/2011 1:53:19 PM

Friday, June 17, 2011 1:53:19 PM

Post# of 282
Dow Jones, Gold & Silver Update -

From their credit crisis lows, I indexed the series to 1.00.
Silver and gold (green & blue plots) bottomed in October 2008,
while the Dow (red plot) bottomed on 09 March 2009.
Note that silver's green plot is read off the right scale.
Indexing data allows us to see these markets as a horse race,
with each series beginning at 1.00.
Their gains as of 13 June, from the lows of the credit crisis
is given in the text box at the upper left.



The most notable thing is how similar the Dow Jones
(red plot) and gold (blue plot) have performed since
their credit crisis lows.
Both have outperformed the much promoted financial stocks.
It's also notable that silver (green plot, right scale),
even after the resent correction is still the star performer
of the past few years.
I expect that will be the case in the years to come,
if not this summer.


Silver

Keep in mind that silver was only pennies from a new all-time
high one day, to a 30% crash in only seven trading days.
No doubt about it, silver got whacked by the "regulators."
We know this to be true because if this ever happen to one
of the major stock indexes, the "regulators" would be out
head-hunting to "find the bastards who did this!"
That they don't investigate silver's "flash crash" only tells
us they already know who was behind it - the "regulators"
themselves.
Yep, it's pretty corrupt, but over the long term it won't
make a difference.


Since the start of its bull market, whenever silver was knocked
down 30%, it took over a year before it recovered its losses,
and again made new highs for the move.
So really if silver should see new highs (BEV Zeros) for
the move before Christmas, its darn bullish for silver.
Right now it looks like silver is looking a bottom.
If May's crash lows hold up for the next week or two,
and I expect them too, it will be interesting to see how
quickly silver can go on to new highs.
If you like buying low, this seems a good time to be buying
silver.



All and all, I can find more reasons for silver and gold
to continue their advances, while the gains in the stock
market's post March 2009 advance is showing signs of exhaustion.
With a US presidential election year in 2012, we should
anticipate some surprises in the markets.
The question is: who are the markets going to surprise;
the gold bugs or the "regulators?"

by Mark J. Lundeen
14 June 2011





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God Bless


My opinions are my own and and DD I post should be confirmed as unbiased