Coldhelium, financial markets are not rational - they are emotional. So fundamentals mean little, if anything at all. Look no further than recent market action in silver as a classic example. The strong fundamental story merely got everyone so euphoric about silver prices spiked into a parabolic top which had to crash. The fundamental story has not changed, but sentiment towards silver has.
In that article he points out that stocks, commodities & forex all rallied higher on a falling US dollar. This inverse relationship has maintained a consistently high correlation - ever since the March 2009 low. So he is suggesting that if the dollar is commencing a new rally phase, then global liquidity flows and the carry trade would unwind leading to a selloff in stocks, forex and commodities - regardless of so-called fundamentals. I happen to agree with him.
- Forums
- Commodities
- SILVER
- bottom?
bottom?, page-104
-
- There are more pages in this discussion • 6 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add SILVER (COMEX) to my watchlist
The Watchlist
LPM
LITHIUM PLUS MINERALS LTD.
Simon Kidston, Non--Executive Director
Simon Kidston
Non--Executive Director
SPONSORED BY The Market Online