Rested and Ready

After a weekend spent with the extended family of Mrs. Ferguson in Chicago, The Turd is happily back in the command post of his underground bunker, prepared for what may be a truly extraordinary week. The Turd enjoyed his trip, however. Highlights included a behind-the-scenes tour of Smith & Wollenskys on a bustling Friday night and a Saturday trip to Penny's Noodles, which simply makes the best Lad Nar on the planet. (Well, they probably make it pretty well in Thailand, too, but The Turd has yet to visit there.)

Gold and silver will be much discussed and dissected this week. Be prepared for all the usual suspects to be trotted out with their dire predictions of "bubbles" and other such nonsense. In reality, gold is only now breaking out of a six-month consolidation range. Its chart looks nothing like corn or wheat or soybeans or crude or copper or cattle or....I could obviously go on and on. That gold is only now beginning to play "catch up" will be lost on all the topcalling trolls and chartreaders. Ignore them. Here's a daily chart that shows the old range as well as the breakout.

In the very short term, gold has struggled some with moving away from the 1476-77 area. No big deal, really, and certainly not something with which you should be concerned. You can see on the 5-minute chart that there's pretty consistent buying with every little dip. I hope to awaken tomorrow to gold somewhere above 1480.

Regarding silver, what can I say? The march higher is simply relentless. Agonizingly painful for the Big Shorts and any other smartypant tagalong unbelievers hoping to make a quick buck. Look at this daily chart:

Now behold the action in silver from Friday morning to current time. This is seriously impressive:

Again, "first notice" day for the May contract is still two weeks away. The pressure on the Comex will only be increasing. The possibility of a signal failure will attract even more attention than it did back in February. There will obviously be dips along the way but the next two weeks may be the most exciting that we've experienced yet. Let's not get overly aggressive and greedy...yet...but don't let a price that starts with a "4" scare you away, either.

I'll be here, ready and raring to go tomorrow morning. Buckle up! The next five days are going to be crazy. TF


8:15 EDT UPDATE:
Here's a re-post of a chart from Friday. There should be support for gold between 1464 and 1467. Should be. We'll see. I'll have a new post in about an hour or so and we'll certainly know more by then.