Comments in this blog refer to my charts collection found at http://stockcharts.com
For intra-week comments go there, updated more frequently.

Sunday, April 10, 2011

Silverado.

I truly, truly dislike saying obvious thing. So, if you live on this planet, you are probably aware that silver had a very nice (but expected) run since August of last year more than doubling and easily outperforming other investments. The run went so well in fact, that silver has met its price target of 40 dollars and is close to the old top from the Hunt brothers era.



This situation certainly deserves some consideration and comments.
It is conceivable, that silver continues to run unabated, particularly in the context of dollar breakdown and gold breakout. However, my suspicion is that the further upside potential for silver is rather limited in the short term and that there are better opportunities within the PM sphere for the next 2 months or so.

HUI, the index of unhedged gold stocks as other PM stocks has terribly underperformed silver, but there is a good chance it is about to change, at least for a while. Looking at the index itself, it looks nice and bullish.








As to when to switch back to the silver itself, the answer is in the charts above as well

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