Lots and lots of noise out there this morning regarding the EU and their bailouts. So far, its all smoke and no real fire.
Your first hint that something significant is up will come from watching the PMs vs the $. As you know, over the past week or so, we've seen a return to a direct inverse coupling between the PMs and $. If that coupling untangles and you begin to see the PMs and $ move higher together, I think you can take that as a sign the EU situation is getting serious. Until then, let's patiently watch and see what happens.
Silver looks great this morning. Here's a little reminder from yesterday of what I'm watching:
"Again, note all the support near $28. If we can get rolling tonight, we should see 29-29.20 pretty quick. From there, imagine a pullback to 28.60-80 and you have the makings of a reverse head-and-shoulder bottom...a very bullish short-term technical feature." - "Silver Quickie", 12/8/10
We did, in fact, reach a high of $29.05 in the March11 before pulling back to $28.57. Can't ask for more than that, huh? More importantly, this chart looks better by the minute.
We've got about 75 minutes left on the Death Star so, hopefully, we can finish strong. Currently we are at 1390.20 and 28.78. Crude is about 0.80 off its lows, too, so for now all is well.
Keep a sharp eye on that PM/$ coupling. This is very important, indeed.