The new Bear stock market will add to Silver and Gold's shimmer

The bear market means it will pay off to be more on the short side of equities vs. long.

Here is Louise Yamada explaining it.  She has been in the business a LONG time and is a pro and well respected technical analysis.  Watch the first video, then it will skip to the second video.

http://finance.yahoo.com/blogs/breakout/market-death-cross-mode-stay-sidelines-says-louise-152153683.html?sec=topStories&pos=1&asset=&ccode=

Here is a long term chart of the S&P 500 showing the falling trend-line of lower highs.  10 year chart.

Now of course QE3 could possibly turn the ship around, but it will have to be huge, like 2+ trillion dollars, to have any kind of decent affect to a rise in the stock market.  I would pretty much advise against buying much of anything here except for the precious metals.  But like I said QE changes everything and it could be a reason to go long.  Right now it is best to stay on the sidelines.

Here is what I think will happen with the precious metals going forward.  Gold is kicking ass and may continue to do so in the near term.  While it is getting overheated, they have introduced one margin hike(which usually takes the wind out of the sails of a security), and we are already back towards the highs just two days later.  This shows a lot of strength.  And you can see the large volume coming in during the broad market selloffs during the day.  So it is like the ultimate safe haven right now.  So it's gonna take a lot to slow this puppy down.  But the CME group did raise margin requirements 5 times in 9 days for silver, and that came to a screeching hault.  The same thing could happen to gold.  So I say this run tests the $2000 level if there are no more margin hikes.  But it will have a nice correction at some point, and that is where you step in and buy physical gold.

Now on to silver.  Silver is finally staging a solid recovery, and should start to look much stronger here above $40.  It will basically start to look like last August, but its ascent will be much faster.  The trading community has seen what silver can do, and they will not be afraid to jump on that bandwagon again when the time comes.  The public might not, but it's the institutions that really move prices, and reports show they were jumping ship last April when silver was still less than $45 an ounce.  They know better.  This is the move that will be just as good as gold's if not better, and Dec-Jan is usually the time frame we get a mid way breather before another run into the spring.  I still have a target of $75-$80 for silver by year end.

Print this out and let me know how I did later in the year!

P.S.  The only reason for more QE this time will be to blatantly push up equity prices.  And with so many retirement and pension funds tied to the stock market, don't think that the government isn't crazy enough to do it.  That will be one of the final nails in the coffin.


                                                                                     Gold- go baby go!

Sincerely,
Chris Criner

Criner Investments, LLC
CrinerInvestments@yahoo.com