Wednesday, June 29, 2011

Gold, silver rally

6:26 am (Hawaii) Shaking off the cobwebs on an early morning in the islands. It's interesting to find gold and silver have rallied nicely for a second day in a row. Yesterday and Monday, volume was anemic and I wasn't convinced of anything in the market. But it's possible we're in for a short-term melt-up similar to what happened on the way up last year, a run of +40 point days in the Dow. I doubt, if this is the case, that it would last very long, though. Maybe a week. There's no justification for the banksters to run high in any scenario over a period of a month or more. QE3 or its stepbrother will be no cure whatsoever for the long term. Getting the timing on this will be the challenge.

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