When I was a kid, my sister had a cat named Calvin. Its been so long ago that my memory is fading but I remember Calvin looking a lot like this:
Fast forward to today and look at a 2-hour chart of the POSX:
Taking my own advice, I have now sold all of my May silver options at an extraordinary profit. I've also unloaded my June 1500 gold calls. The only PM option position I currently have is a measly 2 June gold 1550s.
OK, here are your PM charts. First, here's a 2-hour June gold. This needs to move higher right now or it risks a brief, consolidation move. On the back of the anticipated POSX bounce, I expect gold to fail here and trade down over the next few sessions to the support level of 1480-85. The move will look almost identical to the down move on the chart right above the word "June".
Silver has a similar look and I've given you two charts to consider. First, here's a 15-minute. Note the $1.00 downdraft from this morning. Usually, this is an indicator of more to come. We'll see. Like gold, if it doesn't move to a new high near 45.50 very soon, chances increase that sellers will begin to outnumber buyers and we'll get a brief pullback.
9:45 pm EDT UPDATE:
Well, I could just about barf. I feel like I've got a hairball like ole Calvin used to have. Only my hairball is made out of silver that Scotia Mocatta just announced they are effectively removing from possible delivery status.
Combine this with the fact that May and July silver are now trading in "Backward Asian" to September and December...
And we may finally be on the verge of a serious, serious delivery problem at The Death Star.
And I'm out. I wasn't out yesterday at this time but I'm sure as shit out now. Nuts.
I'm still expecting a "Calvin Bounce" out of the POSX but it hasn't happened yet.
I'm still expecting The Cartel to try to gin up some selling to frighten the May longs but they haven't yet.
I'd love to be long May calls but they expire in three trading days.
So, I'm out. Made a boatload of money but I'm still out. And it hurts. Killing me, in fact. Near death.
See you in the a.m. TF