Well, isn’t this fun? What was it, three weeks ago when I first mentioned $45 silver before May option expiry? At the time, that sounded crazy…the lunatic rantings of a delusional turd. Well, well, well…
I don’t know about you but I’m made some serious fiat over the past few days. After selling my May 40s back when things were heading lower last week, I went long 41s, 42s, 43s, 44s and 45s. It would be an understatement to say that that has worked out quite well. As mentioned last night, I am slowly exiting the last of these positions today. I only have a handful left. I’ve made more than enough paper frn to cover the cost of the new site, however, I do not wish to dissuade anyone from showing their gratitude for all the great information provided herein.
Now, as mentioned last evening, we must be on the lookout for a pullback. Recent history suggests that the period of Thursday into Tuesday will be the timeframe. It will most likely be linked to a dead cat bounce in the POSX. The topcallers will be out in force proclaiming this week as the ultimate parabolic blowoff blah, blah, blah. Ignore them. Wait for the metals to pull back to some clearly defined support levels and then lets go for the glory.
In silver, the level to watch on any pullback is $42.
In gold, it looks to be around $1480:
This is not to say that the metals won’t head higher first. They are pausing this morning as traders digest the move overnight and wait to see if the gains hold. The longer they hold…gold above 1500 and silver just below 45…the more likely it becomes that another spike will develop today/tomorrow that takes gold to near Santa’s angel of 1521 and silver to the 45.81 that I gave as my Thursday close prediction. Here at 10:15 EDT, I have lasts of 1503 and 44.87 so we may begin blasting higher again very soon.
WTI crude is definitely going higher. This hourly chart could not look much more bullish. It may stall briefly near 110.50 but, through there, its straight back to the recent highs near 114 and, through there, it looks like 122.
Lastly, here’s a reprint of the update to the last thread regarding the POSX. Please take time to read and plan accordingly:
No funny pictures this time as this is getting serious. The US$ is in some deep doo-doo. Look at the action overnight:
The cascade stopped right at its current last line of defense of 74.21 cash. As you can see from the chart below, that level must be defended here.
IF 74 gives way, the POSX will quickly plummet toward its final support of 72 and then the intraday low of 70.81 set back in March of 2008. Below 70.81 lays a new world reserve currency system and all that entails. Therefore, expect all kinds of SPIN and MOPE over the next 36 hours. Fed hacks will be rolled out to give hawkish speeches. Politicians will sound conciliatory. One of the PIIGS will be brought front and center again. Whatever it takes to halt the slide and preserve the ponzi will be attempted. It won’t work. Oh sure, maybe it’ll work for a few days or weeks, but I think we are getting awfully close to a US$ meltdown and corresponding PM meltUP.
More later. Stay nimble. TF