A Brief Recap And A Good Laugh

The past few days have been pretty busy here at my day job, and with the holiday season upon us, my evenings have been more event-filled than they typically are during the week.  Needless to say, I haven't had as much time as I would've preferred to comment on the latest happenings in the markets and the economy...in fact, my time right now is also very limited, so inside, I'll give a quick run-down on the Euro, Silver and the overall markets, then finish up with a "must watch" video clip that will leave you chuckling...I promise.

The Euro:  Against the USD, has rallied off a bounce at $1.30 last week, getting as high as $1.34 last Friday, but has failed to reach that level this week and is now back down challenging the $1.32 level, which has been the latest line in the sand for the bulls to defend.  If $1.32 goes, look for a retest of the $1.30 level soon after.  Here is the 60 Minute chart showing the past several days.  Note the recent series of lower highs.

And here is the 5 minute chart showing current action this morning.

 Silver:  After setting two new 30 year highs in a row and cracking the $30 level, the manipulators came in with a ton of paper shorts and proceeded to trounce silver (and gold), but so far $28 seems to be good support.   After that, we have a strong trendline (annotated below) that will provide support.  Don't worry - the fundamental reasons to own silver have not changed, and you should expect price volatility and sudden, violent corrections in this asset, especially after it has risen over 60% in less than 6 months.  Just keep buying the physical on dips like this.

S&P:  We are back up flirting with the 2010 highs, but from a technical standpoint, I don't like the candle we put in on Tuesday.  This is looking an awful lot like a double top reversal to me, but I'm not ready to go short just yet.   How we end up trading today and Friday should make the picture clearer.  Keep an eye on the news that is supposed to be coming out of China either Friday or over the weekend regarding their rumored interest rate hike.  If the Chinese get aggressive with their efforts to contain internal inflation, it could seriously impact US and European equities.   If there isn't an announcement on Friday and you happen to be long the markets, I would consider taking some profits off the table going into the weekend.

All for now, but I do encourage you to watch the following.  I kept getting html errors when trying to embed the video here, so could only provide the link - but it's worth checking out.

http://www.thedailyshow.com/watch/tue-december-7-2010/the-big-bank-theory