Silver continues its powerful and relentless move higher. From August 2010 until now this is the biggest rally of this silver bull market that started early last decade. Silver has also been the star performer of the financial world over the past year.
Silver's destiny with its 200-day moving average appears to be sealed this week as a brief bounce earlier in the week failed at the 50-day moving average. From peak to trough so far this correction has run about 35%.
When investing in the gold sector one of the most frustrating experiences you can have is watching gold outperform the gold stocks in your portfolio. Investors flock to gold stocks to leverage the returns in gold, not underperform gold.
The market bounced late on Thursday on the heels of yet another band-aid attempt on the Greek debt crisis. This was also coupled with an attempt by the government to alleviate some pain by releasing oil from the strategic petroleum reserve.
The four day rally at the end of May, including the big up day on Tuesday, served to soften some of the damage done in May. But the market reversed all of that bounce in one day to start June with a massive selloff.
Gold stocks continued to lose ground last week and have now hit the same level they were at in September 2010. Gold however was marginally higher last week and is still holding above its May 2011 lows. The divergence is clearly visible.
Just like the mess politicians are making with the debt ceiling debate, the stock market continues to trade in a choppy fashion for 2011. Currently we are in the third pullback in the giant trading range that's been in effect all year.
If you simply looked at a chart of the euro over the last year or so, and didn't know about all of the problems facing the European Union, you could conclude that the euro was just experiencing a pullback in an ongoing uptrend.