Just a quick note this morning.
As expected, the BLSBS report "surprised" this morning with an NFP number of +248M. As you know, I'd expected the metals to hang in there this week and then have the BLSBS cause a spike in the POSX which would begin a two-week downward consolidation in the PMs.
I thought the POSX could rally to 74.50 - pretty good.
I thought gold could trade down toward 1525-45 - not so good.
I thought silver would trade down toward 45 - only off by $10. What's the big deal?
Anyway, the point is, pattern is still present and there are some things that are still predictable. This string of 5 consecutive margin hikes is as cruel as it is unprecedented. The central planners are taking great pains to cover their policy mistakes and blame the evil "speculators". Even that worthless, empty suit Chilton has finally shown his true colors. Just another bureaucrat hack.
However, for now we still have a relatively free flow of capital around the globe. The tide has rushed out but it will, most assuredly, come rushing back in at some point. My thought all along (go back and watch the last Wicked Witch video for a reminder) was that after rolling over by today, the metals would consolidate through May 20. In the end, we rolled over earlier and much deeper than I'd expected but, nonetheless, the time schedule remains the same.
Let's see if the metals can begin basing from here. Perhaps silver will spend the next two weeks between 34 and 40. Gold should stay between 1480 and 1520. Then the fun begins anew as we turn the corner into June.