Dollar, Silver and Gold Charts
Before looking at the charts below keep in mind the following: No country in the history of the world has ever been successful in printing their way to prosperity, and the outcome will be no different for the US in this most recent attempt to do so.
Bottom line: Though short term corrections are called for in the charts below, the dollar will most certainly continue to fall while precious metals rise over the mid/long term. A Hyperinflationary Depression (currency collapse coupled w/an economic depression) is closing in on us!
Daily Dollar Chart - oversold (look at the Full STO and MACD) - a short-term bounce is due.
Weekly Dollar Chart - oversold (look at the Full STO and MACD) Again, a short-term technical bounce is overdue, but we're definitely headed lower for the mid to long term.. Note that 75-74 will be key support levels on the downhill slide followed by MASSIVE SUPPORT at 72-71 (If we fall below 71, the USD will be in completely uncharted territory - and at the LOWEST LEVELS EVER - all being relative of course because it's a global race to the bottom now)
Daily Silver Chart - Severely overbought (look at the Full STO and MACD) - a short-term pullback is certainly due. Note that historically when silver pulls back, it usually does so all the way back to its 50 or 200 Day Moving Average (DMA) - will we see the same upon the next pullback (~ $19 an oz)?
Weekly Silver Chart - Further confirmation of an overbought condition (look at the Full STO and MACD) - correction is due. Note silver's recent parabolic rise above it's 50 week Moving Average; also note that historical pullbacks show silver usually falls back to its 50 week MA (~$19 oz) - will this time be any different?
Daily Gold Chart - overbought (look at the Full STO and MACD)- a short-term correction is due. The nearly parabolic rise above the 50DMA is unsustainable, baring a looming currency collapse - but I don't think we're there yet
Weekly Gold Chart - further confirmation of an overbought condition(look at the Full STO and MACD)- a short-term pullback is due.
The currency and PM markets are leaning forward quickly - trying to factor in Helicopter Ben's looming QE2 monetary carpet bombing campaign - but they can't continue on like this in perpetuity and they will eventually undergo a short term reversal (always do).
Question of the day:
Should you enter here with a PM purchase?
Personally, I wouldn't, I'd wait for a nice pullback to the 50DMA, but that may take some time and patience, because as John Maynard Keynes stated: "the market can stay irrational longer than you and I can stay solvent" (Not saying I'm a proponent of his economic philosophy - merely that it's a wise comment)