Tommy Humphreys | May 21, 2013 03:41AM ET
There have been more false bottoms in precious metals and mining shares than a 1920s gangster’s briefcase. However, yesterday’s massive bullish reversal has all the ingredients of a major market low – this one looks like the real McCoy. Due to the confluence of the following factors, May 20th, 2013 has a very good chance of going down in the history books as a major inflection point at the end of one of the most grueling bear markets in the history of the metals and resource space:
Adding weight to the bullish case is the bizarre action in silver during the last 24 hours, which has all the makings of a final capitulative flush at the end of a brutal 24-month bear market:
And the icing on the cake comes in the form of the “explanation” for yesterday’s metals rally: “short covering and bargain hunting”
This is all very reminiscent of the October 4th, 2011 equity market bottom:
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