I just like typing that. It could go down in history as the greatest thread title, ever.
I'm not ready to declare Turd's #2 just yet but I really want to. I mean I really want to. Honestly, the only thing stopping me is the brutally manipulative way that this "correction" in silver has been forced upon us. If the goons at the CME hadn't already shown their willingness to do anything to restrain silver, I'd feel a lot more comfortable sticking my neck out. I mean, I'm already on the record predicting a turnaround by early next week but to come right out and say it is happening tonight would be foolish given the circumstances.
That said, we are really freaking close. Right now. Tonight.
Silver has rebounded all day from the shellacking it took this morning. It is back above $34 and has now held the $33 level 3 times in past 7 trading days.
Now, do me a favor. Print off the 3-hour chart below. Walk into your bathroom with the chart. Turn it upside down and look at it in the mirror. What do you see?
Seriously, go do it. I'll wait right here until you get back.
OK, glad you're back. What did you see? I'll tell you what I see.
I see a chart that, if looked at in the inverse, would tell you to sell. Fast.
I see a sharp move higher to a spike top, followed be a brief selloff.
Then it reverses and spikes again but fails to make it much past the original high.
It then back off again before attempting another run to a new high only to be rebuffed and roll over.
(And what if it made all these thrusts higher on sequentially lower volume, too?)
If you were long (something, anything) and the chart you just saw in the mirror was your chart, you'd be awful nervous and ready to sell at the first sign of failure. To me that failure, that terminal sign, would be a breakdown through the lows made after the second stab at the new high.
Now, turn the chart back around and look again at present-hour silver. None of the dynamics listed above are different. They all apply. We're just looking for a bottom instead of a top. The nervous longs in the outline above are the nervous, smartypant shorts that currently rule the silver pit. Right now, right this instant, silver has triple-bottomed. In fact, it's even a H&S bottom as the middle bottom is deeper than both shoulders. This could all change, of course. The bottom could drop out overnight and we could be under $32 by tomorrow morning and all the shorts will be contentedly counting their newfound wealth. However, IF silver continues to grind higher overnight, every single tick increases the shorts' nervousness. A move through 34.50 would cause them to cover a little. Above 35.50 and they're covering more and, if silver gets back above 36.50, they'll be covering the rest of their shorts faster than you can say "Bob Moriarty".
So, hang in there tonight and let's bring home a victory. I've got a last of 34.20 and gold is rallying, too. It's back up to 1491.
We're close. We're very close.
See you in the U.S. a.m. TF