I've been crunching numbers and looking at charts, trying to call a bottom for this correction. I'm pretty sure I've found it but it means I must change my prediction a little. It is now official and formal:
$1600 by 6/10/11.
Please give me a few hours as I've got a lot to do tonight but I am very excited to share this information with you. Keep checking back but you may have to give me until 11:00 EST to get it posted. Thanks for your patience but I promise you, it will be worth the wait.
For those of you seeking a bottom in the PMs...and aren't we all...the USDX will be your key. Followed by rebounding copper and crude.
As for the USDX, after coming within 3 basis points of the November 21 low yesterday, the predictable "dead cat bounce" struck earlier today. The bounce took us up almost exactly to where it should have, about 79.35 on the March USDX. It has since pulled back:
1) Another leg up commences tonight, the index races through 79.35, all the way to 79.70 or so.
2) We roll over this evening and immediately begin our trip back to the critical 78.45 level.
3) The index tries to rally one more time but fails again near 79.35. It then heads lower, takes out 78.45 as soon as tomorrow or Monday and trades down toward 77.50 and 77 next week.
If I'm right, and #3 plays out, you'll get a shot to pick a bottom in the PMs somewhere below today's pit session lows, maybe on the open or right after the open tomorrow. I still think this "correction" is almost over with gold bottoming between 1340-45 and silver at 27. If #1 plays out, we may see 1320-25 and 26.50. Either way, this correction is almost over as the dollar is headed lower.
More later this evening after I have a full review of Harvey and the rest of the days events. Turd out.