silver outperforms gold
posted on
Jan 03, 2009 08:08AM
SSO on the TSX, SSRI on the NASDAQ
although gold did well this past week, silver's performance was even better. ed steer of casey research explains the activity in the futures markets:
On New Years eve day, gold got sold off in the Far East a bit...and then the down trend accelerated through London trading, with the bottom being the London p.m. gold fix. From there...and to everyone's surprise...the price took off to the upside with some real authority. True, there hadn't been a lot of volume up until that point, but that changed from the London p.m. fix until the close of trading in New York. Silver's chart was very similar, with the metal turning in an outstanding day as well. Gold put in an "outside day key reversal to the upside"...which is a very bullish technical indicator. The boyz have never...ever...allowed this technical indicator to work in gold...and have taken gold down the very next day to negate it.
The world's gold market's were closed on January 1st, but once early morning trading began on January 2nd in the Far East, the price spike in gold was killed immediately...and it became obvious that someone (JPMorgan, perhaps?) didn't want gold to rise and confirm that bullish technical indicator I just spoke of, so it was taken down with some authority...as was silver. This lasted until about 1:00 p.m. in Hong Kong, when both metals began to recover somewhat...but the selling pressure showed up again as soon as London opened, and continued that way, with both metals on the defensive when New York opened. Gold was not allowed in positive territory for the rest of the N.Y. trading session, but silver was allowed to tack on about 40 cents. Both metals would have done better yesterday, but it was obvious that someone didn't want runaway prices to the upside during London or New York...which is what would have happened if the moonshot open in gold that began in early Tuesday morning Globex trading had been allowed to run its natural course.