Alert: Silver Squeezes
The commodity silver is surging today, making new 52 highs. Not only is silver a store of value during inflationary times, but more importantly, it is used in many products and the production of products. Therefore, it makes sense that it is running higher ahead of gold due to the solid economic outlook. The iShares Silver Trust (ETF) (NYSE:SLV) is jumping, hitting a new 52 week high at $32.08. This chart is extremely extended and could see a solid pull back.
The markets are floating higher as the Friday Effect is in full swing. Generally, Fridays are higher, especially ahead of a three day holiday weekend. Today looks to be following this logic. The SPDR S&P 500 ETF (NYSE:SPY) are trading at $134.51, +0.26 (+0.19%). As the markets float higher, the Dollar is continuing to drop. The markets and the Dollar move in opposite direction. As the Dollar falls, the markets move higher and vice versa. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $22.32, -0.09 (-0.40%).
The three day weekend brings into focus the global picture. Over the weekend, traders will be watching for any new riots or events out of the Middle East. In addition, traders are also watching Europe very closely as there are new rumblings starting to brew.