And here I thought yesterday's tading in silver was bizarre
Yesterday, POS crashes at the open, dropping more than a buck. Silver equities follow suit with an even larger crash. And why? The news coming out of Europe looks extremely bleak, French sovereign debt is signaled for a possible downgrade and suddenly the French/German leadership in saving the PIIGS is severely put into question. Thus, the Euro falls, the dollar rises and PM's head lower. And then, in the middle of the day for reasons I couldn't see, the dollar dives and silver goes green pulling silver miners out of deep descents.
And today, Greece's general strike (against more proposed austerity measures) is taking a toll on the country, it's citizens, and suggests things are about to go from bad to worse for that country's debt to GDP ratio. And yet, Euro markets rise and the British pound declines against the Euro. With Greece obviously collapsing and more debt downgrades coming to Spain and others in Euroland, one would expect the flight to the dollar to continue. But the dollar is now down, U.S. equity futures are now indicating lower opens. So why is silver trading lower right now? Recent history prints a rise in silver price when the dollar falls due to a rise in Euroland.
I'm thinking silver will have another bizarre trading day today. If it dips a dollar like yesterday, perhaps I'll pick up a few silver doubloons (physical).
The exchange rate EUR/USD should work its way towards the 50.0% Fibonacci retracement. We need to keep an eye on that little country west of Spain on the Atlantic. I wish them the best, they are nice people.