Tuesday December 03, 2013 08:31The

Tuesday December 03, 2013 08:31

The markets lost the $1,237 level yesterday and quickly moved to our targets from last week in the low $1,220’s. The lack of momentum and the severe chart damage of the past few weeks, finally gave way to some capitulated selling. The focus (misled) again, that the Fed may begin tapering next week created the catalyst to push the metals through support. This morning we find the Japanese embarking on a $55 billion stimulus plan and I believe the EU will continue to remain accommodative. Based on the fundamental “expectations,” I believe this market, especially silver, is over-sold in the short-term. With this market’s mindset that a stronger US$, due to higher rates is upon us and continued tax loss positioning, catching the falling knife is hazardous. For the robust risk takers, taking a longish shot at the $1,209 level may be looked at.