Longs ought to be careful here as the market is nearing critical support. The XLF in particular needs to hold $14.40, and if BAC visits its lower channel boundary, we’re looking at a single digit stock by January. It’s possible we see precious metals morph into becoming a safe haven trade during the next downdraft. I have a new projection on silver which has $35 as a possibility in early 2011. The trifecta of ingredients necessary for another sustained move in the shiny stuff would be equities, bonds, and the dollar all selling in unison. Think about it. This gold monthly chart helps to make sense of the potential upside.
Put all of this up against the backdrop of a shooting star at horizontal resistance on the SPY monthly chart, and you’ve got the makings of an interesting December on deck.
For more macro charts, be sure to head on over to Dragonfly Capital and check out the latest from Greg Harmon. This guy works tirelessly and deserves to be read.