Its another Happy Tuesday!!!
As you're well aware, The EE rarely attacks on Tuesday as tonight is the weekly CoT survey. We've tried to document this for you on several occasions. Here's one such example from last December:
Today, of course, may turn out to be an exception due to the considerable chagrin that is pulsating through the offices of JPM this morning. If you haven't yet, I urge you to go back and watch this little gem from two weeks ago today. Turned out to be pretty accurate:
(I just watched it again. If you haven't taken the four minutes yet to do the same, you're missing out.)
The Evil Empire will fight, fight, fight to put a lid on things at $31.20 or so. However, any victory they achieve will be short lived as the fundos in silver are just so overwhelmingly strong that they will be forced to retreat yet again.
First of all, a recap of the effective yet simple TA you get here. Late yesterday I gave you this:
On to today, here's your silver chart. It tells you all you need to know:
Gold remains a different matter. I mentioned earlier this month that it would probably take two trading weeks for gold to slog through 1360-1380 and that has certainly proven prescient. Now, a similar challenge awaits between 1380 and 1390. Take a look at this chart:
Have a great day. Enjoy Happy Tuesday but be on the lookout for the EE if/when silver crosses $31.
1:25 EST UPDATE:
Almost every commodity is down today 1-2%. Crude is down, DrC is down 2%, soyas and wheat are down 2% but the PMs remain higher, even in the face of margin hike rumors. Why?
I believe the primary reason is that its Happy Tuesday. My warning to you is to be very careful post 1:30. Blythe has attacked on Tuesdays before but its almost always after the Comex closes. Do not be surprised to see several EE attacks on the Globex this afternoon. A move down to new lows on the day, near 30.45, will be your sign that the raid has begun.
Watch closely as, if this happens, it will be a clue to book some short term profits in your miners, etfs etc.
Also, you really should read this: http://traderdannorcini.blogspot.com/2011/02/daily-gold-chart-and-market-comments.html