Replies to post #140 on Steve's Place

[DeepBlue1]

Thinking out loud here on silver....

silver has changed from it's inverse relationship to the dollar and now seems to be trading on fear of inflation in the future and devaluation of all currencies as they pump money into the system.

With the dollar strong at the moment it would seem to be a good time to buy silver with dollars since you can get more for less. But when inflation does kick in it'll scream higher(remember, I'm just thinking here)

Since DEC/JAN, silver is trading in an inverse relationship to the market instead of in tandem with it. It's gaining momentum and is one of the very few things going up now, which would seem to drive just that many more people into it.

It's catching up with gold as the ratio is narrowing.

And like that article said...all it'll take is one high profile investor asking for his physical silver and it not being delivered to send it flying to it's historical ratio to gold and maybe beyond.

http://www.marketwatch.com/tools/quotes/intchart.asp?submitted=true&intflavor=advanced&symb=DXY&origurl=%2Ftools%2Fquotes%2Fintchart.asp&time=7&freq=2&startdate=&enddate=&hiddenTrue=&comp=slv&compidx=DJIA%7E1643&compind=aaaaa%7E0&uf=0&ma=2&maval=35&lf=16&lf2=0&lf3=0&type=4&size=2&optstyle=1013

Hmmmmmm.....

[DeepBlue1]

Just did a quickie 1 yr chart on silver. There'll probably be some resistance at the downtrend line(s) at $15, $16, and $17 ish, although that's the zone that silver was in free fall on the way down so there's not a lot of noise/congestion in that area to confuse things. It'll be an interesting pivot point/zone to watch.

A convincing break above that would be bullish for silver and will probably also mean that the Dow is in free fall and has broken convincingly below the current level.