Well, I'd say that $1 bottle of white-out was one of the best investments I'd made in a while...
As discussed yesterday, silver and gold both broke out overnight and appear to have started new UP legs in their rallies from Turd's Bottom. First up this morning, lets take a look at a longer term picture of gold:
Onto today, Happy Tuesday. Again, its called Happy Tuesday here because of the obvious fact that the EE does NOT like to raid on Tuesdays. Last week was an exception to the rule as the desperation of the moment forced Blythe to take action. Typically, however, the EE does not like to add to short positions today because the weekly CoT survey is this afternoon.
With silver seeming to commence another UP leg overnight, its time to project where we might again run into some resistance. Its very tough to say at this point because there are no clear chart indicators when you are making 30-year highs. All I can do is look at percentages and assume the herd will continue to act in the same manner they have been. I'd say the next slowdown is somewhere between 35 and 36.
Gold is rolling, too. Take a look at the breakout it has made today:
Again, in no way should 35.50 and 1440 be considered "tops". I'm just looking for the next level where the metals might take a consolidatory (I just made that up!) break.
As I prepare to hit the "publish" button, gold is 1421 and silver is 34.34. Lets go have another great day!
ps Trader Dan's got a nice chart here. http://traderdannorcini.blogspot.com/2011/03/4-hour-gold-chart.html I like this chart a lot...especially the squiggly lines at the bottom.