Wednesday 5 January 2011
It is always heartening to post a vote of confidence in a market only
to have it correct sharply a few days later. [See Silver - Revisited,
click on http://bit.ly/eUlK0H, if you missed the article.] Here is a chart
to reflect the current correction in progress.
As prices work higher in any market, the dollar correction amount
becomes greater, but as a percentage, the corrections are pretty
normal. The lines from each swing low to each swing high shows
how the TREND is developing. The $ number below each swing low
is the dollar amount corrected, and the number below is the number
of days price corrected.
We see no evidence of ending action to the current up trend, and
corrections are healthy for any market. There is no change in our POV.