Metals Update

With the huge move down today in Gold and Silver many are predicting no summer rally in Gold and Silver. I am not throwing in the towel just yet. Silver is down another percent this morning but if it can get some buying in today then yesterday could just be a head fake. This occasionally happens before the blast of in volatility squeeze unfortunately there is no way to know. So if you are going to play long then you stop out a couple three percent below the low end of the range. At the open the SLV will be at the low end of the range, but we have economic data that will certain move the markets around 830 so lets see where we open.

Gold on the other hand has broken below its trend line and heads toward the lower end of the zone.

Dollar is up against major resistance. hope this range holds or the PM's are going to have a really ugly July and August. Statistically a rising wedge in a major downtrend usually ends in a big down move but this can last a couple of months, for an example of this, take a look at the SPX chart for summer of 08, see how that ended.