I quite enjoy his analysis may well fit the timeline of the next Fed strategy after QE2. My interpretation of the market action is that many of the leveraged positions have been liquidated, now they are letting it bounce. Also the speed of the move down last week seems overcooked, and now silver bounces. Potentially now it bounces for a week or 2 then towards mid June, the USD bulls will want no more Fed stimulus after QE2 end June. Maybe mid June, the Bernanke can release some more inventive package than the QE2 as a way to keep the Wall St pigs snouts in the trough. At least till their next election.
Anyway I'll just add a couple of charts some levels, and a seasonal chart. The seasonal shows price seasonal pattern detrended in blue, and a seasonal volatility in red. The blue line did a nice job of showing where the top was due. It also suggests 2 potential lows around June and October, but the speed of last weeks downmove, may speed up for an earlier turn in June as Armstrong suggests.
I'm looking at 42.40 as a fairly bullish target for the bounce, and maybe a retrace to 35ish. If it does bottom June 13th, Armstrong reakons buy.
