Of course, I may be just a little bit biased. I own June $1500 gold calls. I've also broken one of my own cardinal rules in that I own May silver calls at $43, $44 and $45. They expire next Tuesday. Turd's gotta put his money where his keyboard is. I expect the next 3-5 days to play out just like late February. Feb 17 had a low of $30.55. Feb 24 had a high of 33.75. I'll let you do the math and draw your own conclusions.
Let's start with the gold chart as I like it very much. Note that its moving higher in daily stages, almost a mini-SwissStair formation. Significantly, after each thrust higher, it pulls back and uses the previous highs as support. You can see this progressively higher support below at 1467, 1472, 1478 and 1488. When gold breaks through 1500, a pullback will show support at and slightly below 1500. Perfect. Now, if we can just get it to actually break through...
Silver is funky. Its unclear whether its the reluctance of gold to break through 1500 that is holding it back. What is clear is that its stuck in a rather tight range around the $43 level. On the bright side, it ain't going down, either. You'd think that if The Cartel had any gas in the tank, they'd use this pause to try to gun it lower here. Maybe the sharp rebound off of yesterday's raid has spooked them a little. Hard to say. What I do know is this: You can bet that there are, once again, a bunch of buy stops placed at $43.50+. If you got short yesterday or Friday, you're hanging on for dear life, praying that it will roll over. You're also watching $43.50 very closely. A move through there and you have to cover and retreat to higher ground.
But, seriously, after the PIIG SPIN-induced bounce yesterday, even I didn't think it would roll back over this quickly. Watch 75.35 in the June (about 75.15 cash) very closely.
OK, that's it for now.