Justin Smyth's Blog

Silver attempted to take out 50 on Monday of this week and instead had a big reversal day as it temporarily ran out of gas. Then after testing 45 the following day silver has moved higher after the Bernanke press conference and is once again approaching 50. For the very short term silver appears to be trapped in the 45/50 box and is awaiting a break either above or below this box.

Silver continues its powerful and relentless move higher. From August 2010 until now this is the biggest rally during this silver bull market that started early last decade. Silver has also been the star performer of the financial world over the past year.

The slogan "the trend is your friend" was created for a reason. People tend to agree more often than disagree with their friends. Aligning yourself with the long term trend means you are choosing to agree with the wisdom of the market. Good friends typically help each other out too, and when you trade with the trend you let the market help you choose the correct direction to align your long term investments with.

The major indexes were slightly down last week, but the Transports had a more significant pullback down –2.65% for the week. Commodities were the outperforming part of the market last week with oil up 4.61%, copper up 5.71%, and silver surging up 8.28%. The powerful moves in commodities were aided by the declining dollar, which slid down –1.29% for the week.

There seems to be a lot of silver pundits calling for a major top in silver lately. There’s basically two main reasons why they are calling for a top: 1) silver is currently stretched above its long term moving averages and 2) silver looks spiky on a chart.

It's now been over a decade since the great tech bubble burst in the year 2000, but even today technology stocks are still popular among most investors and the financial media. There are good reasons for the continued popularity of technology stocks.

Warren Buffet released his annual shareholder letter last week and also conducted what has become an annual interview on CNBC with Becky Quick. During the interview they covered an array of topics including the economy, the U.S. government’s fiscal situation, inflation, Berkshire’s investments, and oil.