Paging Dr. C
Just a quick note to follow up on something we discussed last week.
If you haven't noticed, DrC is kickin ass and takin names. Up over 2% today alone and it has crossed a very important technical barrier. IF it can consolidate and hang here...and I think it will...it looks to be breaking out and rolling higher at almost exactly the same time as last year. Here, see for yourself:
So, why is this important? As mentioned in the post from last week, copper has a track record as a leading indicator of future PM price. While copper rallied about 45% in the time period listed above, gold and silver had huge gains, too. From 8/1/10 to 1/1/11, gold rallied about 22%. In the same timeframe, silver rallied over 70%!
Similar performance in the remaining months of this year would take copper to nearly 600, gold to 1850 and silver to 62.
In summary, watch ole DrC very closely in the coming days and weeks. If it starts moving out to new highs above 465, it will be just another surefire indicator that the next UP move in the PMs will be explosive and amazing. TF