Technical Update: Silver EXPLODES Higher
The stock market finally poked its head above major resistance yesterday (red line in the chart below).
We now need to wait to see if there is follow-through today.
For certain, stocks remain in an uptrend (blue line in the chart above).
But without follow-through on this breakout, we could easily see a retest of the blue trendline. And if you really step back and look at things in the big picture, the market hasn’t done much of anything since early June.
The more dramatic development concerns precious metals.
Precious Metals Are on a Tear
Silver in particular has begun to go vertical, erupting above resistance (red line in the chart below).
This looks to be the start of something MAJOR.
During inflation-induced bull markets in precious metals, silver outperforms gold dramatically.
The below chart shows the ratio of silver to gold. And it proves this to be the case since the March lows.
When silver outperforms gold, the line rises.
When silver underperforms gold, the line falls. It’s very clear what is happening here.
Looking at this, it suggests that this is not some mere blip, but part of a major bull market in precious metals.
The Staying Power of a Precious Metals Bull Run
And why not? The markets have clearly figured that policymakers will be responding to every issue by printing more money.
Just yesterday, the European Union announced a €750 billion ($858 billion) stimulus program. This comes after the ECB already printed €1.25 trillion.
And then there’s the US, where the Fed has printed over $3 trillion, the government has issued a $2 trillion stimulus program, and is now in talks for an additional $1 trillion stimulus program.
Again, the markets have clearly figured that policymakers will be responding to every issue by printing more money. And this has ignited a major bull market in precious metals.
Locked and Loaded
By the look of things, we’re just getting started here.
And subscribers of my Strategic Impact newsletter are locked and loaded…
My subscribers have broad exposure to this sector with unique recommendations that have been EXPLODING higher in the last two weeks.
As I write this, we’re seeing several positions showing strength.
And we’re just getting started.
To learn more about how YOU can start using this research to your advantage… click here now.
Editor, Money & Crisis