The Dow is down 800 points at the time of this writing, and although silver is not headed to the moon, the path to least resistance still up. An exciting week with the Fed “aggressive” rate cut is forcing the market to take a deeper dive, but for now, let’s call it a correction. The fear of the Covid-19 virus has made its way with the markets, but common logic will soon prevail. It is not that the virus isn’t dangerous and killed people, but most of my reading discusses its similarity to the common flu. Look, the equity market was long overdue for a decent correction anyways, so I wasn’t surprised about that. What surprised me and others the most was the fact that the FED went nuts with their rate cut of 50 base points. The last thing this market needs is a scared Fed. Supposedly, this will be a global coordinated effort to keep markets afloat globally. So far, I’m not convinced, but I could be wrong. All I know is that silver is taking advantage of it. Consider buying dips provided you have an appropriate “risk asset.”
The technical outlook remain strong, although it may close on lower side here, you really need a close below 16.60 in the front month May futures contract for the bears to have a better edge.