Good evening, my dear reader, wherever you are. It is about 10:00 pm EST here in the U.S. but I felt compelled to update and extend two recent posts.
First up is a post from yesterday called "Buck an A". (Cute, huh?) Please review it by clicking here:
I'd intended to write the post about the sinking dollar but, in my research, I noticed that the always dangerous "Poseidon's Anchor" formation had clearly formed on both the 10-year note and long bond charts. The anchor formation leads to a near-term bottom which is the opposite, technically speaking, of a parabolic, blow-off top. At the time I wrote the post, I commented that the drop in treasury prices looked to only be about half over. To the casual observer, that might have sounded silly however, after another 2-point plus drop today, the anchor is proving once again to be a reliable indicator. Here again is the chart from yesterday:
For short-to-intermediate term metals prices, more significant information is contained in this post below. This is from last week so please take a moment to refresh your memory:
Late today, Eric King blogged another interesting tidbit from his "source" at the LBMA. This is significant because his "source" has been so accurate. Take a moment to read this:
I'm starting to get very interested (excited) that we are on the verge of a major move in metals prices. If this all comes to pass, and Santa is vindicated with a $250 move in gold over the next month....well, let's just say that the guy should be deified. Either that or put on trial in Salem as some kind of witch. In any event, I'm strongly considering violating one of my cardinal trading rules, namely, purchasing a large quantity of out-of the-money, front-month options. As you should know by now, this is a type of trade works, oh, about 0.127% of the time and it is almost guaranteed to wipe out your trading account in short order. However, tonight the Feb11 $1550 gold calls, which expire on 1/26/11, are trading at 2.50 which means they cost $250 each. If Santa is correct and gold trades at $1650 by 1/14/11, each call will be worth $10,000 at a minimum. Hmmmm. Now you see why I'm considering pissing away a few dollars tomorrow. Between Santa, Eric King, the crashing bond market, the euro contagion, the JPM squeeze and on and on, I almost think its crazy not to own some way out of the money calls. As always, I'll let you know if I actually pull the trigger.
OK, that's it for today. An amazing day, at that, as we had our most pageviews ever. Over 14,000!
Thank you all again for making this endeavor successful way beyond my wildest dreams. Turd out.