Is it Time for USD Bears to Hibernate?
12/06/2012 9:00 am EST
The rubber band that is the US dollar index continues to extend from its late November hinge.
Considering that weakness in silver has preceded major pivots lower in the euro—dollar bears would be wise to heed its call and take shelter for an early winter slumber. I am indeed biased here, but can appreciate the symmetry of their respective retracements. Both silver and the USDX exceeded mirrors of their 61.8% retracement levels. The bottom line, though, is that silver continues to hold prescience to risk appetites.
That is—if you're not in denial.
Hi ho silver--away!
Erik Swarts can be found at MarketAnthropology.com.