Time for Natural Resources Correction

If your in natural resources, it is starting to look pretty scary out there. Either the sector is going to keep running up, and the result may be civil unrest, or as the charts look, things are stretched and it's time to go back to the mean.

Several bloggers are calling it toppish right now. First, there is Gary of the Smart Money Tracker. As he points out, the USD has broken the trend line down. And if my friend John Chinnock is right, (which I am currently not in agreement with), we have seen the worst of the US dollar fall.

Over at xtrends, where they have been spot on since June, they are also calling a top.

Over at slope of hope, a top in silver has been called, as prices are breaking down.

A side note, Slope of Hope is also calling for plummeting solar panel prices next year, for those of us who are looking to reduce our houses on limited energy (fossil fuels).

In any event, natural resources when they correct are violent. So consider taking 1/2 down again of positions.

So there ya have it, I'll be lightening up again (after I added a week ago) and putting stops in.

Good luck.