"There's something happening here
What it is ain't exactly clear "
- Stephn Stills, Buffalo Springfield
Once again the gold and silver market chugs higher in leaps and bounds while the US dollar broke through a crucial technical support line at 75 cents. Where this goes from here is anyone's guess but I sense from the power of the buying it may be a swift move to the $1200 - $1250 range.
There is too much negative news out there from Geitner secretly wanting the dollar to go lower and make the US more competive or the Russians today buying up more Canadian dollars. News like this is not everyday stuff. What's exactly happening here beyond a currency crisis is the mystery that has long been read of but we are now witnessing.
On the flip side there are many top callers out there who if right,we will be seeing a very swift move down as this rise has been extremely fast. The charts are screaming "overbought" but this current move may make a few chartists looking foolish as the bull stomps higher busting every short to pieces as they are forced to cover ASAP.
Personally what I think is happening here is a mass short squeeze that the media seems to not want to mention and are playing the US dollar side of things. It may well be a combo but remember it was only a couple of weeks back the COT report showed a record amount of shorts. Were they all sucked in for the gold bear slaughter ? me thinks so.
But how long this lasts til the market takes a breather for awhile is my next big question. This bull move is like none other we have ever seen and has some serious legs behind it. We all know one never wants to stand infront of a runaway train.
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