Silver and silver miners.

Silver prices have been climbing, defying all expectations by silver bears. Since, last August, silver went from 17.5 to over 47. Earlier this year, silver corrected like gold, though the timing and size were different some. After the correction, silver resumed its rise and has been on a tear since.

Silver miner stocks did something else. Beginning in March, silver miners began a wedge formation. I have provided the graph of three of my favorites: FVITF, IPT.V and GPL. I did not draw in the wedge for FVITF, but did for the other two. The resemblance in the graphs suggests a common cause. Profit taking is probably one. All of these stocks have at least doubled since last September and GPL has increased 5-fold. Some experts claim that PM miners are being shorted by the hedge funds and predict that when the rally in these stocks resumes, their rise will be spectacular because of the short covering.

Gold miners do not show the same pattern, but some have dropped or have gone sideways while gold broke through the1,440 resistance.

We can see silver moving faster, because of the disparity between gold and silver prices. The latter is more attractive to the small investor.

Could it be that the miners give us a non-confirmation to the PM rally? IMO, that is doubtful. The FED continues to increase the money supply, inflation is showing and threatens to accelerate, the rising oil prices are dampening the barely existent economic recovery and the sovereign debt crisis of Europe has driven Greek bonds past a 20% yield. Greece can not survive with such an interest rate. In addition, US debt ceiling may be breached next week, meaning a crisis in raising it. Granted, that Republicans are afraid of the Media and are expected to cave when the Dems turn on their demagoguery machine, but even the dim wits will start seeing that something is radically wrong. None of these factors is conducive to stabilize PM prices.