Dan Norcini Update – Apr 16th 2011



Dan Norcini
(Apr. 16th, 2011)

  • great action in Silver, more coverage
  • technically plowed thru $42
  • gold very strong, took out good resistance at $1480
  • WRT miners, looked like ratio trades unwinding, long bullion, short miners, but ratio trades coming back in.
  • ratio chart of HUI to price of silver, HUI to silver ratio is same as 2001 when silver at $4/oz. Peak was above 45, now 13.5.
  • XAU is worse, peak in late 2003 above 20:1, now at 5:1, can’t find when the ratio was this low going back 20 years.
  • mining shares are obscenely undervalued.
  • is watching the HUI at 575 since that is the area where ratio trades started to be unwound in the past few weeks.
  • COT report, picked up Goldman ‘lets sell commodities’ call, shows liquidation of managed money, gold saw big commercials pile on shorts.
  • US dollar, relentless downtrend.
  • only reason for dollar uptick is due to Ireland downgrade.
  • not impressed with US dollar, would need to get above 76.50 to break trend.
  • on crude oil, strong energies but gold and silver moving up on inflation play due to energy increases. Europe and China have inflation concerns, yet US CPI core was 0.1%, bonds moved up on this bogus tame inflation call
  • silver, floor at $42, should move higher to $44 test early next week. If $42 fails, then could fall to $40.25 and still be ok. Seems to move up in $2 increments
  • gold, could make a run at $1500 next week, likely will see resistances, if it does go thru $1500 easily then could run.

See full interview on Kingworldnews here (about 7 min. in)

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