You get days like today...
Never mind that I told you this morning that silver would be capped all day.
Never mind that I warned you last night that The Wicked Witch would be stalking the pit like a mythical beast.
Never mind that I told you yesterday that gold was going to be leading silver for a while.
Today was truly breathtaking it it's peculiarity.
I've been around a long time and maybe my memory is starting to fail. (Wouldn't surprise me. It's always been said that alcohol abuse damages brain cells.) I cannot recall ever seeing such a disconnect between silver and gold on a day session. Ever. Oh, sure, maybe silver might be up or down 3% while gold only moves 1% but at least they'd be moving in tandem. To have the two totally and completely trade independent of each other is absolutely extraordinary. Here are your two charts to consider. They are both 5-minute pictures of today's action.
So, what does this mean? Is it just an aberration? A coincidence? No freaking way, my friends. Everything...and I mean everything...is being done to temporarily restrain silver. The Cartel is effectively expending their entire "conventional" arsenal in their attempt to survive May settlement in silver and live to play another day. Think about it, this week we've seen:
1) Two CME margin increases in 48 hours.
2) Every available Disinformation Agent has been put forth to convince the sheep that silver has topped.
3) Sell side analysts stubbornly refusing to raise or even maintain year end price estimates. Remember, year end estimates are critical to the calculation of miner share price forecasts.
4) Today's historic price divergence.
5) And now, on the Globex, on a Friday no less, The EE is putting the hammer down in an attempt to gin up ever more top-calling over the weekend. Since closing on the Comex at about 48.60, silver is now down 80 cents, the majority of which has come in three minutes.
Anyway, the good news is that The Cartel has been successful. Weak-handed longs have been frightened. They've run from silver and charged into gold, instead. This is great news! I'm long a bunch of June 1550 gold calls so I made a lot of money today. Thanks, Blythe!! Its also great news because we needed The Comex to survive May. The fundos haven't changed. In fact, they've only gotten worse. Remember the Scotia story? June will be another crazy, wild month in the silver pit and we will have a remarkable opportunity to make a boatload of money. In the words of The Wicked Witch herself, "shit, Ruprecht, IF Turd Ferguson is correct, we'll make enough money to fucking BUY Venezuela"!
And, regarding this "topcalling nonsense". Since when has any market topped while everyone was telling you to sell. I'll tell you when...NEVER! Markets "top" when the last buyer has bought...when there is no fear and no perception of risk. Is that today's silver market? Hardly! The fact that so many douchebags are trying to convince you to sell your silver is simply a sign that silver will trade even higher. "Climbing the wall of worry", as they say.
So, relax and be happy. Go into the weekend KNOWING that you are WINNING. Gold is at $1562/ounce, for the love of pete! Rejoice! TF out
ps Before today, I hadn't urged anyone to make a trade at any time. Against my better judgement, I did just that earlier. For any short-term angst I have caused you, I sincerely apologize. I won't do it again. I make general observations here for you to interpret and evaluate. It is not, nor will it ever be, my place to give you specific advice or trade ideas.