1) Downgrade prompts spike as buyers rush in and shorts cover. Fundamentally, this was the right thing to do as this is, unquestionably, bullish for the PMs.
2) All of a sudden, a new thought takes hold. "Maybe this will do it. Maybe this will be the catalyst to finally get the U.S. to take their problems seriously." Along with that, you get this..."This certainly means that the U.S. will raise rates and end QE. Inflation and risk off. Sell your PMs."
3) These two nonsense, bs arguments have taken hold and back down go the PMs. After reaching 1498.60, gold is back down to 1489. Silver touched 43.56 and has since seen a low of 42.20!
4) Without question, The Cartel attempted to "carpe diem" in silver. They are hoping to paint an Outside Reversal Day on the daily chart. Again, an ORD is when you make a new high on the day but then close below the low of the previous day. Technically, it paints the picture of a change of sentiment and a temporary blow-off top. Not good. Technical algos would be tripped into sell mode and the "situation" in silver might be a little more manageable for Blythe and her crew... at least for a little while.
The ultimate number to watch today is $41.80 in May silver. Not only is that the number below which there would be an ORD, its also very important support on the 2-hour chart. Failing there, we could see a move all the way back toward $40. (All the way back toward 40...as if that would indicate some type of defeat. HA!)
And here's the daily silver:
And here's how brainless and stupid this all is:
The POSX is up. Granted, the ginned-up news regarding the PIIGS makes those long euro a little frazzled but, still, so you take your money and buy dollars? What are you...freaking nuts? Seriously? Jeezo, there are sure a lot of braindead, status quo, inside-the-box only money managers out there.
Anyway, the only thing you need to watch today is $41.80 in silver. With an ORD in her grasp, you can bet that Blythe and her monkeys will make repeated attempts to attack and collapse silver. Do your part. Be ready to buy if we start moving under $42. I will.
p.s. In my haste, I neglected to give you an update on the POSX. This, SPIN-inspired, dead cat bounce will likely take it to 76-76.20 but that will be it. We'll be back testing the area around 75 by next week at the latest.
11:55 EDT UPDATE:
I apologize for not taking the time to run upstairs to get the whiteout. You'll have to use your imagination. When you do, you can clearly see that the move back UP through 43 is very constructive for ending the downtrend that began in the overnight hours. I have a last in the May of $42.84. Lets hope it keeps moving higher.