I am on the road today flying jets around the country, Turd can handle the market updates for me. Silver is still hanging around and my position fro last week is already up 6%. I will likely put in a stop loss at Friday’s close.
Our Nascent Ascent
After the 3-day weekend, things are looking quite positive this morning. I know there were a lot of nervous moments back on Friday but those who hung in there have been rewarded today.
As we begin the week, let’s start with the dollar. “Calvin” appears to have run his course and now it’s just a matter of watching it bounce off of potential support areas. Nearly all bounce buying will be purely technical in nature because who, in their right mind, would be buying on the dollar’s fundamentals? Seriously.
The PMs are getting, and will continue to get, a lot of help today from the crude pit. As we’ve been discussing for the past 10 days or so, once crude got past 101.50, it was going to be clear sailing to 105. Today’s action proves that to be correct as I have a last of $103.10, up $2.50. The pace of buying will begin to slow above $104 and selling will emerge as we approach $105. I’d expect $105 to serve as rather significant resistance for a while as, beyond there, it’s straight back to $109-110 and our esteemed and supremely qualified president has clearly stated his desire to keep prices down.
Gold continues to climb higher as it builds toward The Wicked Witch’s hoped for double top. It made it’s first foray into the 1540-45 area overnight and it will continue to ram into that area today. However, just like 1525, 1545 will fall, too, and we will head toward 1560. Beyond there, 1570 awaits and with it, all the firepower that The Cartel can muster in what will be a desperate attempt to paint a double top and convince their shills and disinformation agents to proclaim the long-term bull market in gold to be kaput.
Lastly, here is silver. As if on schedule, it is making its run to $39.50 as we close out the month of May and flip the calendar to June. I expect some tough sledding between 39 and 39.50 but, ultimately, the fundamentals will trump the technicals and silver will once again eclipse 40 and head higher. Our goal before the end of June is still somewhere around $43. Let’s call it a range of $42.50-45.00, somewhere in there. Again, I would expect silver to reach that level sometime before “first notice” day of the July contract, which is June 30.
OK, that’s it for now. Keep an eye on the headlines today as the Greek “situation” is just another step in the collapse of the Great Keynesian Experiment. Have a fun day! TF
Sent with MobileRSS for iPhone