Well, That Sucked

Every once in a while, ole Turd rolls out a real clunker like last night's post. Must have been the gin...

At any rate, after taking a beating in the overnight hours, our precious precious metals have begun to rally back. I speculated in the comments of the earlier thread that perhaps a "capitulative low" may be reached during the regular bloodletting hour. So far, that's worked out pretty well. Right on schedule, silver reached a low of $36.43 at 8:20 EDT as the monkeys tried to capitalize on the downside momentum. It has since rebounded almost 40 cents to 36.82. As it recovers, its first hurdle will be the double-bottom from late last week, at 36.85-90. If/when it gets back through there today, it will encounter some more resistance at 37.10 and 37.30 but lets worry about that later. For now, lets hope we stand strong in the face of the option expiry nonsense and hold the line around the earlier lows.

Gold is just stuck. Last week showed that someone or something is keenly interested in keeping it below 1440. On the plus side, it also showed that there are a lot of buyers in the area around 1410. So, for now, we are simply rangebound. Have been for a couple of weeks now. Probably will be for a while longer.

Lastly, some folks have asked me to comment on this:
http://ftalphaville.ft.com/blog/2011/03/28/528886/some-curious-silver-forward-patterns/
I wish I was smart enough to offer some enlightened opinion. It looks to me like a couple of banks are searching rather diligently for some silver and are willing to pay up for it. Anyone have other explanations? Is this even anything significant? I don't know.

As I submit, we're back up above 37 and 1418. Very Nice!!
More later. TF