What a day for Silver

On occasion the God smiles on me! Today was such a day. I was away from the TV and computer and I just have to say WOW (chart volatility).


First of all the guys whose blogs I read everyday have been saying this for months now. Heck I wrote about it in October and I was late to the party. IS THIS NEW INFORMATION by the S&P. This isn't news, and whats even more ridiculous is the way the market sold off and all the jabbering on CNBC. 


Anyway, what I think is happening in the first spike up is the news of the downgrade of US debt to negative, shorts cover people go long and then the spike down is precipitated by the fear that maybe the downgrade will bring the US to their senses and the Govt will stop the QE and cut back spending. So those folks run from the PM's. Then sanity prevails and they realize that this crack addicted  may need to be weaned off and if they correct to  quickly it'll lead to a depression  and the S&P stated that it is unsure the the government will get its fiscal house in order. So hearing that, people run back out and buy the paper they sold. C' MON MAN!


Edit: the dollar ETF is up .84% and silver is up .88% and gold up .5%. Dead cat bounce in USD. all commodities have sold off hard, materials, ag (seeds fertilizer), except for the DBA which is up a bit.