Wow! What a crazy day! So much going on today that I don't think I have the time to adequately cover it all but here goes...
First up, check out this 5-minute chart of the USDX. Two things I want to know:
1) Is anyone surprised that the index bounced right off of its last hope of support at 76.17? Also is anyone surprised that the absolutely bogus "Gaddafi wants to leave Libya" rumor showed up at about the exact same time?
2) Who in their right mind was selling at 76.20? Brainless algos or brainless traders, you pick.
Now back to that BS Gadaffi rumor. What a joke! Anyone that believes or believed that is utterly clueless. Let me state this clearly: THERE IS NO FREAKING WAY THE COLONEL EVER LEAVES LIBYA ALIVE. As stated by several of our astute readers, he can't. If he does, he's a dead man. Either The Mossad or the MI6 will immediately whack him or he'll die in jail while awaiting a war crimes trial like Milosevic. Either way, HE AIN'T LEAVING VOLUNTARILY! Got it?
So, where does that leave crude? At a buying opportunity if you ask me. Look at this chart:
Now, let's look at the PMs. First up, look at gold. It still shows a steady, accumulation pattern where you should be buying all dips. $1430 should have acted as support today and it did. Only a break of last weeks lows would be a cause for concern as that might signal the end of this current trend and the beginning of a consolidation phase.
Two of the silver miners we follow got some great news today and are kicking booty.
EXK has filed to move from the AMEX to the NYSE. This increased visibility is huge and it adds an extra layer of credibility to the company. Keep in mind that they have zero debt, too.
Great Panther is rolling, too. Here's the announcement that temporarily caused a halt in trading.
The Great Ted Butler has apparently deduced that JPM is the only remaining short in the silver pit. IF this is true, the implications are quite significant. I'll let you decide:
And this is something that has to be on your radar...the ongoing explosion in premium to NAV of the Sprott Physical Silver ETF (PSLV). I don't believe this to be an anomaly. Investors are flocking to this fund because they are worried about their future ability to get physical silver. Like backwardation, this is evidence of just how significant the current physical supply squeeze is. A significant contraction of this premium will be a sign that the squeeze may be abating so this issue must be watched.
OK, that's it for now. On the Globex, gold is $1435 and silver is $35.94 (c'mon, Blythe. Help a brutha out.) April crude is well off its lows at $105.28.
Keep watching. Tonight will be interesting and tomorrow is, of course, Happy Tuesday.
More this evening. TF
ps You all might want to take time to read this, too.
9:00 EST UPDATE:
Watch out. Blythe just clipped us for about 30 cents in the past few minutes. She's clearly lurking and has bad intentions. Don't be surprised if you see silver trade down toward my 35.50 or even 35 overnight. Crude and gold are holding firm, however, and that will make her job more difficult.
Harvey discussed tonight the Ted Butler commentary that is linked above. If you haven't read it yet, you should do so immediately. If Ted is correct, then silver is going to continue sharply higher. Turd out.