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Silver Continues Breakout, Predictions For Exchange Markets

|Includes: EUO, FXE, GLD, iShares Silver Trust ETF (SLV), UDN, UUP
aaronbasile.wordpress.com/2011/02/18/silver-continues-breakout-predictions-for-exchange-markets/

On a day where the Chinese hiked reserve ratios by 50 basis points and the CME hiked gold and silver margin requirements, silver managed to close $.78 higher for a gain of 2.46%. Meanwhile SLV closed up $.76 for a gain of 2.44% on volume that set a 2 1/2 month high of over $50M.

The bullishness is back in this market and not even the Chinese or the CME could slow down today’s activity. Silver miners are catching up to spot price but still have some space to cover, and the 20 and 50 Day MA’s are crossing over.

Gold is going to continue to lag here but it is slowly gaining back ground.

So here’s the outlook for the next 2-3 months – Silver is going to at least $36 before making the next retracement. Regarding gold, I expect it to really break out in late March, early April. Around this time, Portugal will be making headlines the way Greece was at the same time last year. The dollar index will make a YTD high somewhere above 80 – perhaps 83-87, the exchange rate will likely fall to about 1.26 but may make it down to 1.20, and the stock market will finally peak though I’m not sure if that means the Nasdaq will take out the 2007 high of 2861. I’ll be keeping track of these 5 predictions.