thursday brainstorming

1. Markets correction keeps marching as the numbers rolling in are rather on the weaker side and tomorrows though cooked numbers may fall short of expectations. The weekly charts could turn into weekly reversals which would be far more significant but we will have a final blow up as next week some very benign days are ahead as well. Interesting though that Bin Laden faked death production marked the highs so far around our target levels. SPX cash around 1330 should mark the lows ( a rather not expected extension would be 1315).

Silver is crashing as it has lost 25% within a week and we are in a classic wave 3 down speed – that is a disaster for some speculators but at a significant ld high one should always expect turbulences. Gold is dropping in a moderate speed but thats because some central banks are buying weakness in Gold but are not at all in Silver which makes it much more volatile.

Dollar turned around for a brief correction before it reached the 1.50 threshold and could drop to 1.44 levels before rising again to 1.50-0150

Commodity Plunge Resumes

Tyler Durden's picture

Submitted by Tyler Durden on 05/05/2011 10:35 -0400

The liquidation wave has arrived, as the entire commodities complex, with an emphasis on silver and crude, continues to feel the wrath of a bipolar market which from inflation has suddenly realized that the underlying deflation needs to exhibit itself before the US Central Bank has a justification for more monetization. Elsewhere, the by bar biggest bubble in the world: the dollar short, is blowing up, with the EURUSD on route to post a 300 pip move in a few hours. Basically, the tit for tat repeat of 2010 in this Anno Domini 2011 continues.

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~ by behindthematrix on May 5, 2011.

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