After a double-whammy of an EE blitzkrieg and a silver margin increase, whodathunk that our PMs would be holding in so nicely? Keep the faith folks. Have the fundos changed? Is the US suddenly crafting austerity plans and tax increases with a 5-7% GDP? I didn't think so. As I type Feb11 gold is about $1375, a full $14 off of the Blythe-induced panic attack of this morning. March11 silver is equally impressive, back above $29 at 29.15. A move back up through 29.25 would be very constructive.
Two quick things. First, I see I caused quite a stir by posting that gold chart this afternoon and positing the theory that the EE stages raids on Wednesdays so that their actions won't show up on Friday's CoT report. I didn't realize that this was such a revolutionary theory. I mean, I always thought it was pretty obvious. My friend, Cris in Maine, asked that I post the same chart for silver to see if the same pattern emerged there:
Second, lots of chatter tonight here and everywhere about "descending triangles" and "pennants". I thought I'd better take a look. Uh-oh, look what I found:
Boy, from the looks of it, it's all over. We're doomed! Or are we? Maybe we should consider a little. longer-term perspective:
All I did was extend the time period of our little window. Was it over on 10/27 with gold at 1325? Was it over on 11/29 with gold at 1356? Was it over when the Germans bombed Pearl Harbor? Hell, no! And it ain't over now! Avoid the wannabe top-callers and junior technicians. Don't let them frighten you with their stochastics and their RSIs. Ignore these people. History shows us that gold is going still higher. It may trade sideways for another day, even another week, but higher it is headed.
The metals continue to rebound. Now 1376 and 29.22. Feel good. Rest well. Tomorrow is another day.