To the surprise of no one, the metals traded off last night as the EE hopes to paint a H&S top onto the silver chart. Do you remember this from yesterday afternoon?
"I'd say a certain "moment-of-truth" has arrived. We either smash through 30.50 tomorrow or Friday (with or without "Benton" help) or Blythe is going to fiercely beat us back.
As a cautionary measure, I sold a few of my March silver calls a few minutes ago. I still think we've got the EE on the run and the fundos haven't changed...but...I'd feel like a real dork if, after noticing this, I failed to act and I let Blythe wipe me out with a beatdown toward 29 or 29.50.
So far, all is well as we hang in there at 30.10 and 1362 but be wary of an early am, pre-Comex smackdown and the selling it could generate."
March silver reached a low of 29.67 but it has since rebounded to 29.80. As I type, it's 8:32 EST so, by the time I finish this note, Blythe may have conducted her early morning raid. We'll see.
For now, here's what you need to be watching today. I'll start with gold because, frankly, its less important right now. Here's a chart that takes us back about a month:
The action is more profound in silver. Here's a chart with a similar timeframe:
We'll see but, for my own account, I'm looking to take the funds I received from selling some March silver calls yesterday and begin rolling into May once we get close to $29.50. Of course, I will keep you posted on any action I take.
Its going to be a very interesting day. Don't stray too far from your computer screen. TF
ps Its now 8:45 and Blythe is definitely attacking. Lets see how this plays out...