OK, its now 8:00 EST on Friday evening. I promised you a new post and a summary of this amazing day. I promised that I would have it up by 4:00 EST. Oops. Running your own businesses and managing a viral blog are somewhat time-consuming. Our overnight guests have also arrived so now my time is even more limited. Fortunately, we have a 3-day weekend to catch up.
First things first, here is your daily silver chart:
1) After yesterday, you could have expected a soft opening. You didn't get it.
2) The CME raised margins. In December, silver dropped 10% in 2 days following a similar announcement. Today, price vaulted higher.
3) Understand this. Silver went down into the close as speculators who piled into the March contract over the past 48 hours liquidated and took profits rather than hold over the three-day weekend and meet their margin calls. This is totally, 100% natural and not significant in any way.
4) At around 2:00, Blythe may or may not have tried a raid. Its impossible to know for sure. Either way, the new support level of 32.30 held.
5) AND THIS IS BIG...On a Friday, heading into a 3-day weekend, from 2:30 through the Globex close, we rallied about $0.35. HUGE. SIGNIFICANT. RALLY. This tells me that our BoS...those that are standing for delivery in two weeks, seized the opportunity presented them by the weak-handed longs that sold into the close. The BoS BOUGHT. They are resolute. Margins don't matter. They are not afraid. They are ready for next week.
Onto gold. Look at this beautiful, weekly chart:
I could type all night but I can't. My duties as host prevent it. How I wish each and every one of you were here to tip an adult beverage with me. We are comrades in arms and should celebrate (a little). We live in historic times and we are on the right side of history. Relax. Have fun. Enjoy your weekend. Look for another post sometime tomorrow.