Friday, December 18, 2009
The Dollar, Gold & OIl...What's Next?
In this past Weekend Review, I highlighted; as I have for several weeks now...that the energy sector ($WTIC) crude oil was set to takeoff. >>read more
Here's an updated chart of the dollar, which hit my target, gold and crude oil.
*click chart to expand image
I've been voicing my view over the past few weeks to lighten up on gold, silver & copper and to allocate more into crude oil. I also pointed out that the metals would decline much more so than crude oil. Look at this chart over the last 5 days of Pride Int'l (PDE), Transocean (RIG), Silver Wheaton (SLV) & Yamana (AUY).
Shorter term I see some more downside for gold and silver, but longer term they should trend higher, silver more so than gold. Note on the Silver Wheaton chart, the Bearish Flag formation.