Maybe Pic can update on the planetary influences today, but I feel bullish as hell on this market action and have been buying PM juniors aggressively. I added more SLW yesterday and KXL on Monday, but today I grabbed some GPR and EAS, and will probably load up on UXG, a stock that has been trading higher in this correction.

Now I have a history of buying too early after selloffs, but most of the time those buys turn into winners as I also have a history of a strong stomach to put up with the takedowns and not pitch into weakness. I think this market action is beautiful, as it has flushed out the weak holders yet again, and burned off the overbought technicals for most of the stocks that were on an uptrend. It is healthy, despite my hostility to the crooks that have engineered this selloff for their own benefit.

I think that is the critical piont to emphasize: This is an engineered event. It is phony, created by intervention, and not a trend change. The manipulation will run its course, and then the fundamentals of the PM bull market will regain momentum. The primary trend will be unaffected by all of this, just as we have seen so many times in the last few years, after takedowns even more severe than this one.

That idiot Nadler is posting his nonsense as usual, and he even had the nerve to call the gold rise a bubble that has popped. What a crock of BS! We get a selloff in gold about every 4-5 weeks of similar magnitude and it has not changed the bullish bias for the metal. This latest market hissy fit is accompanied by sell-in-may seasonal weakness, plus a dose of hysteria over the slow train wreck in Europe. Otherwise, been there, seen that many times before.

My personal view is the USD is getting a sharp bounce off market weakness creating demand for US dollars as leverage is closed off in other sectors, plus the weakness in the Euro is pushing up the teeter-totter for the US dollar in response. However, the dollar is also a sick currency and will not be able to sustain this rise, and it is already way into overbought territory.

My final point to consider today: gold has staged a comeback off the lows, and is trading in lock step with the dollar for the last few weeks. When the dollar breaks down, and it will, I expect gold to continue higher. This is as bullish as it gets for gold to break out and decouple from the dollar. After this correction has been resolved, I think gold will establish new highs, and hopefully drag silver up with it.

cheers!

mike