US 10 year bond yield falls - but stocks and metals pressured?

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US 10 year bond yield falls - but stocks and metals pressured?

Wednesday morning, I suggested that if silver couldn’t hold $23.80 , lower prices would probably quickly follow; silver proceeded to drop intraday to a low of $23.25 spot. Thus far, it is holding with a short-term bottom about 10 cents higher than the Jan. 5 low of 23.11. I would reaffirm that if the Jan. 5 low breaks, traders should account for the probability of lower prices still, and $22.55 would be the level to watch, in my opinion.

Gold also made another run at the $1920 level yesterday before again being beaten back down. Let me reiterate that I believe metals likely have higher to go before spring and that should a deeper correction occur, my current forward-thinking strategy is that the dip is to be bought, again. Interestingly, yesterday the US 10-year yield dropped precipitously, right in the face of Fed president Bullard who did his best to raise the prospects of a more aggressive hike path. If you read my analysis last week, you might have expected the yield to continue to drop. I wrote:"Another look at the US 10 YR yield shows that a lower low is still the probability. My bias is to be long metals for as long as the pattern is in play and the yellow support zone is in reach".

 

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