Monday, May 12, 2008
Platinum & Silver
I've pointed out in the past that the strong partner during the precious metals bull has been Platinum. A few weeks ago I noted that I was worried about the "crawling" action as Platinum hugged the 50 DMA. This often results in a break down. Well Platinum did break down. Except instead of following thru and correcting hard it's recovered and is again back above the 50 DMA and back to making higher highs.
Silver has now closed above the $17 resistance level. Silver is also not acting like it has in the past during D wave corrections. Silver should be in a waterfall decline by now. It's not happening.
When the Fed didn't reassure the market they were done cutting rates at the last meeting I think it didn't take commodities in general and oil and PM in particular, long to figure out the Fed isn't going to be withdrawing liquidity anytime soon. As a matter of fact it took two days before the commodity markets caught on.