A final thought for this evening...
I took some time tonight to review the charts of several of my favorite commodities and I found that they all have something in common.
After reviewing gold, silver, wheat, soybeans and crude, I found them all to about 1-2% away from what would be looked-back-upon as very logical bottoms. I find this quite interesting from a correlation standpoint.
We've all observed the PMs getting smoked for the past week. No doubt we've seen the entire commodity sector get smacked around pretty good. But would you have thought their charts looked so similar, not only on the upside the past six weeks but back down this past week, as well?
This draws me to a conclusion in which I am quite comfortable. What we have seen in the past week is a wholesale selloff of risk assets. Nothing more. The five commodities listed above are related only to the extent that they are dollar-denominated. For example, wheat has an entirely different set of fundos than gold but the wheat chart is almost identical in terms of percentage move.
As this relates to the PMs, it is further proof that we are simply seeing a price correction. Not a top. Not a new paradigm. Not a Wave 1 of Bear 1 of...blah, blah, blah Elliott nonsense.
Gold will probably test today's lows and may even see 1320 but I am supremely confident that that is as far down as it will go.
Silver will test 25 again but no way it goes much below 24.75 before rebounding sharply.
Crude's gonna find a ton of support between 80 and 82.
Wheat may see $6. If it does, holy cow! The chance of a lifetime to buy. Very tight global stocks and a long, cold winter guarantee it won't go any lower.
Beans between 1160-75 are a steal.
My point, again, is that all these commodities are within the same % of very substantial support.
The change in sentiment that has caused this correction is very near the point where it will flip back.
Keep the faith. Buy this final dip. Much fun lies ahead.