This week we would like to highlight the incredible buying opportunity now being seen in precious metals. Silver in particular is extremely undervalued and is set to produce a strong rally to retest the 2011 high of $47. It is now testing multi-year support and presents the best risk/reward proposition of any asset we have evaluated.
Stocks experienced another turbulent week with the S&P shedding 250 points to find support at 3,850. The major indexes then rallied considerably Friday and are set to continue into this week. We expect a counter-trend rally to now take place. However, technicals remain bearish for the major indexes with the Dow, S&P, and Nasdaq all below their significant moving averages. The VIX also remained elevated, but was able to close beneath the key 30-level by the end of the week. Overall, we still expect higher prices to be seen in equities during 2022. A major high should be delivered during October/November.
Last Week’s Economic Data:
Core CPI: Beat
Initial Jobless Claims: Miss
Upcoming Economic Data:
Tuesday: Core Retail Sales, Fed Chair Powell Address
Wednesday: Building Permits
Thursday: Initial Jobless Claims, Philadelphia Fed Manufacturing Index