Just like Craps - Rolling 6 the hard way

The gold and silver market are just a little....crazy lately.  Silver is grossly overbought, once again, and gold is making it's way there as well.  The really weird think about this is the non-confmation in all of the silver and gold stocks.  This really reminds me of a good craps game.  Sometimes things are going your way, and you can even roll the 6's the hard way, and they just keep coming.  There's no logic, you think it shouldn't happen again, and there it goes again.  "Six the hard way!"  Pay the man.

Gold chart lately:

Not too extended over the 50 MDA, but it's getting there.  Note that gold has been consolidating its gain's for the last 6 months, so I can't say that a breakout is too surprising here.

Now for silver, the shiny little brother of the PM family.

Silver has been on a mission lately.  Notice the moderate correction in January and the mini correction in mid-March.  That's been about it lately.

Now food for thought.  Runaway moves defy logic, and ignore technical indicators.  So, if gold and silver start the vertical climb due to rapid dollar devaluation, or some other unforeseen world event, we could be riding a real wild stallion until mid-May or so.  I still plan on exiting most of my PM positions in May, and getting back in the game around August.

I think the real head-scratcher is the non-confirmation of the gold and silver stocks.  Let's use the GDX for gold stocks and SIL for silver stocks. 

GDX

I would have hoped to see GDX take off yesterday, but it did seem to have a good showing today.  Let's see if this support holds

And for SIL.

Looks very similar to GDX.  However, as Silver is outperforming gold right now, I would have hoped to see SIL take off already.

So, the less risky of the two options here is probably the GDX play.  I just feel that Silver is more likely to correct a lot sharper than gold at this point.

I'm still pretty well stocked up on gold and silver stocks at the moment, so I am hoping for some better action out of them tomorrow.  I may have a nice gold junior to talk about tomorrow.  It's got a great looking chart for an entry buy, and it actually has gold reserves as it is just adjacent to a another gold play with a lot of resource ounces.  Nothing like being next to a biggin!!

Until the next time...

Fiat Doubter