Well, here we are. After a week spent catching falling knives, you'll recall that I committed to time, date and price a few days ago. For a refresher, read this: http://tfmetalsreport.blogspot.com/2011/01/1600-gold-by-june-10-2011.html and this: http://tfmetalsreport.blogspot.com/2011/01/end-is-near.html
In attempting to call a bottom, I frankly couldn't ask for more. First up, the USDX is sick and dying and looks terrible. It is struggling mightily to maintain its footing above critical support at 78.50, the bottom end of a range that goes back to November. Recent positive correlation notwithstanding, if the PMs are to reverse course out of this current correction, they will find strength from further weakness in this index.
The answer is yes, so far. Take a look at this 15-minute silver chart. Note the first low came in at $26.54 and the almost immediate bounce. What I'd like to see now is a re-test of the low and then consolidation for a day or two between $26.50 and $27.30 or so. Then, a late week break back UP into the 27.60-28.00 even area.
Lastly, I leave you with these three items. One old, two new. First, read the latest from Patrick Heller, a guy with his finger firmly on the pulse of the physical market:
Then, reread these two missives from the Great John Embry. The first, http://www.sprott.com/Docs/InvestorsDigest/2010/06_23_2010%20Gold's%20on%20the%20cusp%20of%20a%20parabolic%20move%20up.pdf was written near the bottom of the last major correction back in July of last year. This new one is so fresh, its dated this coming Friday. http://www.sprott.com/Docs/InvestorsDigest/2011/MPLID_012811_pg003Emb.pdf
Keep the faith. We will win. More later. TF
So far, so good regarding the consolidation above our levels.
Perhaps President O'bottom can cook up a little $ strength tonight. We'll have to wait to see what the teleprompter tells him to say but its already beginning to leak out: