Silver, Gold, and Oil

Thankfully, as stocks continue to peg fresh record highs, oil is doing the exact opposite.  Prices at the pump have been melting lower and are going the opposite way of the stock market.   This is great news for the consumer.

Years ago it seemed the consensus was a massive inflationary event was coming and you should be buying gold or silver.  Like most failed trades, they look good at the start.  Gold and Silver are now reverting back to their 2009 prices.

Gold, Silver, and Oil continue in a down trend.  Just like shorting this market is painful,  trying to catch the knife on falling prices.... you might lose all your fingers and still never catch the bottom

I think its important to note investors are forgetting about precious metals as stocks rally.  It's all about making money and anyone long Gold or Silver the last couple years hasn't been doing so well.

IF you look at the trading action as Gold hit new highs in 2011, there were some large candles and volatility.  It was a blow off top.  When Gold bottoms we will likely see similar trading action.  Right now its just a slow steady bleed lower.

Here are a few long term charts.  I think all three  $USO, $GLD, $SLV have a chance to reclaim 2009 prices.


Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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