Position: short EEM
Well, it appears I was early on the silver call. Just look at what happened after we closed below 30 on SLV yesterday. I said 30 was going to be key so I'm not real surprised it got hammered today. I am starting to see the selling momentum slow down on EEM, but price pays and we made another lower low today so I remain cautiously short. We are at a key price level of 37 but recall what I said about those price levels that "should hold" and what the market likes to do to them. I believe one has to look at the dollar here and notice that it just officially went into uptrend mode making a higher low and just now making a higher high this week. The dollar can get moving in a hurry when it starts trending so I would not feel real good right now if I was long anything since the dollar is the opposite of all the world's risk assets. A radio guy I listen to who talks markets mentioned that the vix hasn't budged much this week. This to me shows complacency; everybody thinking "Oh its no biggie, we'll get another huge snap back rally any day now". Perfect fuel for continued weakness.
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