Sorry for the delay in posting this morning. As you might imagine, I've been a little busy assessing the situation and determining what I wanted to say. As discussed yesterday, a close below 1405 and 34 would be cause for concern and I think we're going to get it. The situation in Japan is simply too uncertain for anyone, man or machine, to invest confidently and make rational decisions today.
At some point, logical people will get back to making logical trading decisions and, when they do, the PMs are going to be headed a lot higher. Why?
1) Do the events in Japan make the continuance of QE more or less likely?
2) Because of this event, is the global economy going to be growing or slowing?
3) Do the events in the Middle East make oil higher or lower priced?
4) Is the by-product of nuclear meltdown physical silver that Japan will be shipping directly to the Comex?
These things don't matter today as all we are seeing is mindless and panic selling and deleveraging. OK, I mean, really, can you blame anyone for selling today? We are truly dealing with an unprecedented series of events and all potential outcomes must be considered. However, the moment is coming when the investing world realizes that the precious metal "baby" has been thrown out with the paper asset "bathwater". That moment may have already come as we are already $15 off of the lows in gold and $0.60 off of the lows in silver. I don't think so, however. I fear that the Japanese "situation" is going to get worse before it gets better so I'm not buying the dip just yet.
So, here's what we need to do today:
1) Pray for the people of Japan.
2) Hang in there.
3) Keep the faith.
4) Be patient.
5) Ignore the trolls. They're not worth the time and energy.
More later, that's for sure. TF