Trends were not finished last night. Higher dollar , to 81.00 and a lower silver price, 21.61 have occurred during the night . The dollar lead about 4 1/2 hours. Both silver and the dollar index seem to have started a retrace , but only time will tell for sure. 81.74 , gap fill, now a dollar target.
Another dollar gap way up at 83.66. Wondering if SLW and the dollar are already A B and price is soon to start the C waves ? Dollar not falling very fast, either don't have far to move or the move will take a second day ?
For the past year, 79 has been the floor, actually pretty strong support. It would not surprise me to see just enough out of congress to allow the spin media to make a bigger deal than warrented sending the dollar higher. On the other hand, if they punt like August of 2011, the 79 floor may again be support. That will limit SLW upside over the medium term. Speaking of spin, I am hearing a bit about how the deficit has come down to sub $700 billion for last year, but average in the $400 billion first month of fy 2014 and we are on trend for trillion dollar deficits last year and this year. Sooner or later that has to be reflected in PM's and PM stocks.
I covered my SLW calls yesterday for a decent return waiting on a small pop to re-write them. Over the last week or so, dollar index has run up nearly 2 cents and is probably due for a small short term re-trace, which should be positive for SLW.