Well I don't know about you but I, for one, am glad to have this day behind us. Ever since The Sunday Night Silver Massacre, Mondays have made me very nervous. Things certainly didn't look too rosy this morning with the euro getting crushed, the dollar rallying and WOPR in charge. Fortunately and as hoped, humans reclaimed the market and the metals trended higher virtually all day with both putting rather impressive mini-FUBMs on their intraday charts. With this day behind us, we can begin to look forward toward the rest of this week.
Here's a 2-hour gold chart. It looks very good. You've got the spike down to a panic low of 1462 about 15 days ago. A snapback rally was followed by seven trading days of a beautiful looking base between 1475 and 1515. It now appears to be breaking higher and ready to take its first stab at 1525. Because that level is so technically significant, I have a hard time imagining that it will break through in its first attempt. Maybe some "news" will help it but I think it's more likely to fail at 1525 and then take a day or two to regroup between there and 1515. Then, after that pause, the next attempt at 1525 should carry enough momentum to blast through and send gold on a trajectory to take on 1545.
One last thing, Gonzalo Lira has decided to convert his site to a subscription service. Here's the announcement:
Given the current, unprecedented economic conditions, those attempting to manage significant portfolios should give his service a look.
Have a great day and evening. More sometime soon. TF
p.s. As you've probably heard, the city of Joplin, Missouri was devastated by a tornado yesterday. They are desperately in need of water and basic supplies. If you can help in any way, here is a link you can follow:
You can also donate through the local chapter of the Red Cross:
If you've ever wondered what it's like to be caught in such an event, watch and listen to this:
Very sad and tragic.