In the wake of the SPR news yesterday, it's hard to deny that the powers that be don't appear motivated to prick the speculative froth from the commodity bubble. We can debate the merits or shortcomings of these moves from the CME's increase in margin requirements in silver to the Saudi's motivation to flood the market with more crude - the simple truth is they have likely contributed to the path of least resistance in the short term.

Here is an updated chart from a few weeks back with one addition - I added oil because it is leading the way lower at this point. It seems like a foregone conclusion that silver - and by extension the respective currency pairs off of the us dollar will embark on their next leg lower.

Disclaimer: Position in UUP

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