Today Reuters was carrying this story: "Ever-cautious Chancellor Angela Merkel has made comments which could be seen as preparing the ground for some sort of aid and in a clear shift, some influential newspapers have started running editorials arguing Germany may have to act." Here's the link: German bailout imminent?
IF Greece is bailed out, and it is my view that if Germany does not lead one, then the U.S., via the IMF, will spearhead a bailout because of AIG's known CDS exposure, expect that the markets will party hard to the upside, especially gold, silver and mining stocks. I believe part of today's ebullience in the precious metals market (HUI +2.57%, gold +1.45%, silver +2.79%) was related to these news reports. The reason this development would be positive for the precious metals is that any kind of bailout like this means there is a de facto devaluation of the fiat currency involved. In this case primarily euros, but to the extent the UK and the U.S. are involved, secondarily sterling and greenbacks.
With this as a backdrop, please enjoy the chart below, provided by DC of New Jersey and created by Carl Swenlin of Decisionpoint.com (green commentary is mine):