And I say, it's alright.
Oh man, what a fantastic day. We speculated last night that gold would tap 1400 overnight. It hit 1398.30 before, again as predicted, it rolled back and tested the 1385 area. Turd's Crystal Ball was equally accurate in silver as it nailed some buystops overnight and rolled right up to 29 before pulling back to the (now) support area around 28. Once that was all accomplished, the metals consolidated and pushed back higher. In fact, they both closed above the significant levels we've been discussing. March11 silver needed to close above 28.24 and it did it, closing at 28.42. Feb11 gold needed to close above 1385 and it made it, too, closing at 1389.20. Gold even withstood a last second EE barrage. See the chart below:
So, where do we go from here? In a word: UP!
The charts look terrific and there's $17B in POMO still to come this week.
Below is the current, 3-hour Feb11 gold chart:
Now, take a look at this March11 silver chart. This chart is even more simple and clear.
Will it work? Maybe. I don't know. Who knows? Who cares? It may work for a day or a few days but not much longer than that, if it works at all. Silver is headed much, much higher. Probably 33-35 before consolidating and pulling back again. Review this if you need a refresher:
Lastly, though I expect the PMs to stage these rallies tonight, tomorrow and Friday, don't forget that we get our monthly BLS BS number on Friday at 8:30 EST. Do not be surprised if this disgustingly manipulated, government-issued, economic metric isn't massaged to reflect a "surprisingly positive" jobs summary. The BLS BS report of 12/09 was the "green shoot" used by CNBS et al to concoct the whole "Recovery 2010" nonsense exactly a year ago. And, yes, they do think you're stupid enough to fall for that line of crap again.
I'll try to check in again this evening. Until then, any extra thoughts I have will get placed in the "comments" section of this note. Thanks for reading. TF