Take Some Profits?

11:15 EST UPDATE:
I normally would craft a completely new post but I feel strongly about the info below from earlier so I want to leave it up all night for our Far East readers.
Not much happening this evening. The metals are steady...like everything else...about what you'd expect for a no-news, 12/28 evening.
I did want to post a USDX chart, however. With gold and silver having such huge moves today, one would have expected that the dollar had sold off. In fact, quite the opposite happened. Frankly, this chart makes me even more confident that the EE will emerge tomorrow morning with some fresh paper shorts.
Have a great evening. More in the morning. Turd out.

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What a great day! Silver has closed above $30 for the first time since the 1980 peak. We should all be excited as the next UP leg has clearly begun, as predicted last week.
http://tfmetalsreport.blogspot.com/2010/12/interesting-weekly-charts.html

Now, let's see if we've learned anything over these past few weeks together.
Do you remember this? It is essential that you take a moment to re-read this post:
http://tfmetalsreport.blogspot.com/2010/12/wicked-witch-of-new-york.html

Here is a reprint of the gold chart from that post:

Here is the same chart, updated and current:

With that in mind, here's what we know right now:
1) Silver exploded to the upside, in line with the expectations from last week, on a nice short-covering rally. This next UP leg should carry us to the $32.50-33.00 area over the next couple of weeks.
2) Silver has made a new closing high but not a new intra-day high, That number is 30.75.
3) The Evil Empire does not like to raid the PMs on Tuesdays as the COT survey is always basis the Tuesday close.
4) The EE, in their recent, aggressive efforts to cap price for 6 straight days, obviously had no interest in adding to their already substantial short positions today. They may even have covered some.
5) The EE will, most likely, raid tomorrow and try to drive price back down under $30.

So what do we do next? Personally, The Turd will try to lighten some positions here, either later today or at the open tomorrow. If the recent pattern holds (and why wouldn't it?), silver will probably continue to rally up near the old intra-day high overnight and early tomorrow. The EE will then commence their raids and price will probably fall back to the $29.50 area. Remember this?
http://tfmetalsreport.blogspot.com/2010/12/hi-yo-silver.html
It sure looks like the BoS are putting up support lines at $1.50 increments and the next level is $29.50.

Now, of course, I could be wrong, so I would caution you against completely blowing out any position. There is nothing worse than being out and watching the market continue higher. If you are holding physical long-term, just sit back and watch to see if this plays out. If, however, you want to try to trade this thing like me, study all this information carefully. Consider selling a little when silver gets above 30.50 and look to buy back when it dips toward 29.50.

Lastly, please read this from Trader Dan. Very important info:
http://jsmineset.com/2010/12/28/trader-dan-comments-on-soaring-commodity-prices-and-plunging-bond-prices/

That's it for now. Please don't forget to visit our "sponsors" on our way out.
More later. TF