Is Silver Winning The Battle?

Tuesday, February 28, 2012 at 11:27 am

Very impressive price action so far today in the metals. Though gold is still being restrained below $1785, silver is rolling and is currently trading above the all-important $36 level. The is all well and good but, as you might imagine, it's what happens next that matters.

This is The Battle Royale. Longtime Turdites will recall the significance of past duels with the number 36. In this instance, we also have the convergence of two, powerful and significant lines of resistance in the same area. Moving through and closing above $36, when it happens, will be immensely significant and will lead to an even greater acceleration of momentum to the upside. $40+ silver awaits.

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Gold would also be at its Battle Royale level this morning were it not for the three, consecutive 2:20 pm Globex trim-jobs that were described in the previous thread. $1800 - $21 = $1779 (current price). You may think I'm crazy or over-stating things a bit but you must remember: Silver is JPMs problem. Gold is the problem for every central bank in the world that relies upon unlimited fiat creation. In the micro, The Cartel is attempting to keep gold below 1800 as they know that any close above that level will induce even more spec money into the pit and rapidly drive gold back toward its all-time highs. If they can stall this momentum for a few days, perhaps The Bernank and LTRO will "disappoint" and gold will move lower on its own volition. We shall see.

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Just a couple of news items for you today. First, Jeff Nielson wrote the piece below last week. YOu may have missed it. If so, please double back and read this very important article:

http://www.bullionbullscanada.com/us-commentary/24220-the-15-trillion-money-laundering-mystery

And I don't often cite Greg Hunter here because he is usually posted and linked in so many other places. However, in this instance, he's right "in our wheelhouse".

http://usawatchdog.com/gas-prices-signal-tsunami-of-inflation/

As I close, gold is surging to 1785 and silver is 36.36, even while The Pig is rallying, ostensibly because of this, I suppose:

http://www.zerohedge.com/news/ireland-mentions-r-word-eur-plunges

Hold onto your hats. This day keeps getting crazier! TF

Comments

survivalwstyle's picture

in the club

Submitted by survivalwstyle on February 28, 2012 - 11:29am.

with mrF

Titus Andronicus's picture

Dear $36, this is for you.

Submitted by Titus Andronicus on February 28, 2012 - 11:30am.

(I know it's not a sure thing, but I grew up on this 70s soul music and I love this song.  It was going through my head as I was watching my the nice numbers on my trading platform.  And it sure looks to me like silver does not want to go back down.)

Pokersensei's picture

Shares

Submitted by Pokersensei on February 28, 2012 - 11:33am.

The mining shares are still performing horribly. Crazy on a day like this!

Vagabond's picture

Where's the Numbers

Submitted by Vagabond on February 28, 2012 - 11:38am.

Anyone have a link to H's spreadsheet?  It looks like the metals are trying to make a move towards my targets to win me a yellow hat!

xaviercromartie's picture

Silver made a smaller inverse

Submitted by xaviercromartie on February 28, 2012 - 11:38am.

Silver made a smaller inverse head and shoulders at 35.00-35.60 that took it to 36.20. Then it completed a Fibonacci move to 36.40. It moved into the upper portion of the Andrews Pitchfork with this move. Retracements have been only 23.6% lately. It might not drop below 36.08 from here.

PaullyMoore's picture

Central Banks

Submitted by PaullyMoore on February 28, 2012 - 11:39am.

I would add silver is also a central bank problem since it competes against both gold and paper.  Remember, Central Banks control most of the world's physical gold and infinite paper, but do not control physical silver.  Central banks' number one objective is control.

lairdwd's picture

$36.40 new intraday resistance?

Submitted by lairdwd on February 28, 2012 - 11:39am.

Sure feels that way. 

Torpedo Fish's picture

trap

Submitted by Torpedo Fish on February 28, 2012 - 11:44am.

feels like a trap to me

Eric Original's picture

I know I had 1792.47 in the

Submitted by Eric Original on February 28, 2012 - 11:47am.

I know I had 1792.47 in the gold contest.  I'm feeling pretty groovy right now....

Fred Hayek's picture

Is this a reluctant to have all their shorts on record Tuesday?

Submitted by Fred Hayek on February 28, 2012 - 11:48am.

Hasn't there been a suspicion that Tuesday's generally show a strong rise in prices because any new shorts dumped on the market then can't be covered before the commitment of traders report comes out? 

Between this and Ben Bukkake speaking tomorrow, well, that's a fair dose of rocket fuel.

H - original's picture

Spreadsheet link

Submitted by H - original on February 28, 2012 - 11:48am.

https://docs.google.com/spreadsheet/lv?key=0AkbhQfELraBedEphbGVKS2xGVm1I...

Good luck folks!!

NW VIEW's picture

EE TRAP ???

Submitted by NW VIEW on February 28, 2012 - 11:49am.

This is a great time for the EE to pile on some big shorts, the profits will be huge and the small investors will be cleaned out again.

tallydynasty's picture

Gold is building up a

Submitted by tallydynasty on February 28, 2012 - 11:52am.

Gold is building up a Spring-Coil.  If it punches through, watchout!  

It may fail, but my guess it would be short-lived and the assault on 1785 would be back quickly.

lairdwd's picture

No trap here folks

Submitted by lairdwd on February 28, 2012 - 11:54am.

SLV long on the Jun '12 at 35,36 strike. Somebody wants it higher, and we're like the little fish that kling to the sharks underbelly along for the ride.    However, I do believe the EE will try a beatdown on the "disappointing" LTRO uptake - if it should be less than 500B Euros. 

That's probably the next good buying opportunity. 

Pokersensei's picture

Mining Shares lagging AGAIN

Submitted by Pokersensei on February 28, 2012 - 11:55am.

Even on a major breakout day these things can't seem to catch a bid. It boggles the mind...

Bugzy's picture

Yes EE maybe trapped

Submitted by Bugzy on February 28, 2012 - 11:55am.

This is a great time to get upside momentum after being range bound for so long. Like a breath of fresh air. Stop cowering - "over the top - CHARGE!" ;-)

FriedEggs's picture

Now is the Time to go All-In w/ your Gold and Silver Investment

Submitted by FriedEggs on February 28, 2012 - 11:57am.

Barry is super pumped.

.

Yes, now is the time to go All-In with your gold and silver investments.  Last week I provided you the four key fundamental reasons for the coming break-out move for precious metals. The gold & silver price action for the first two months of 2012 tells me that this year is going to be a record setting year, and that a substantial rally is coming very soon.

To answer some of our clients concerns of a possible 10% price pullback from current levels, I think the possibility of a major Gold/Silver correction taking the Gold price back to the $1,600 level, or Silver back under $32 per ounce, has about a 5% chance. So, make your purchases now, not when gold and silver make new all-time highs. I believe that within the next six months, today’s gold and silver prices will look like the good old days. With this perfect storm for precious metal investors, gold should set all-time highs above $2,000 per ounce with Silver reaching $50 per ounce this year. Gold is trading at $1,776, up $210 (13.45%) while Silver is at $35.33, up $7.46 (26.75%) since Jan 1st, less than 2 months since the start of 2012.

.

http://www.kitco.com/ind/Stuppler/feb272012.html

.

Fried(e)

cz0840's picture

I think it's a trap

Submitted by cz0840 on February 28, 2012 - 11:57am.

Silver has gone up very fast and very quickly for my taste, I would hold-off here and wait to see what happens next.

Loud Noises's picture

Good Morning

Submitted by Loud Noises on February 28, 2012 - 11:57am.

Its a nice morning and I'm sure there are a few smiles around Turdville.  Not sure if this has been posted yet but its both hilarious and infuriating.  Make sure never to use Google maps or write illegible notes.

http://www.takepart.com/article/2012/02/15/you-may-already-be-fbi-terror...

Number 47's picture

After fear scaring me out of

Submitted by Number 47 on February 28, 2012 - 11:58am.

After fear scaring me out of my position this morning at 35.85 crying I have now gone short at 36.425, I can't see this staying up before Bernanke tomorrow. We're way overdue a beatdown, hopefully Blythe will provide.

cpnscarlet's picture

So what to buy?

Submitted by cpnscarlet on February 28, 2012 - 11:58am.

I never buy into strength. On days like this, I just watch the ticker and stroke the stack.

But I have decided (even after a completely blown call in 2011 - I "blame" Doug Casey) today to go long again on TBT. With the UST 10 yr down below 1.90, I think now may be the time to "short" with that fund. Nat gas is still cheap, but I think it may, like housing, still be in for some downward chop.

Comments? 

ClinkinKY's picture

My guess for Ag- $36.79 - I wear a size 8 Turd:)

Submitted by ClinkinKY on February 28, 2012 - 12:00pm.

Where's the Numbers

Submitted by Vagabond on February 28, 2012 - 10:38am.
 

Anyone have a link to H's spreadsheet?  It looks like the metals are trying to make a move towards my targets to win me a yellow hat!

tallydynasty's picture

Crowing "Trap", "RAID Coming"

Submitted by tallydynasty on February 28, 2012 - 12:00pm.

Crowing "Trap", "RAID Coming" ----- does nothing.  Please remember the prior 9 years of this bull run.  When it wants to run, it does.

Jdawg's picture

Say Good Bye to Silver in the Thirty Five Dollar Range

Submitted by Jdawg on February 28, 2012 - 12:04pm.

Folks, believe me when I tell you that silver will be at $50 by May 24, 2012.  Oh!!! by the way this only my conservative view. 

I got a wild side  also.  It gonna be a wild thing (silver)

Dr G's picture

It's not a trap. You guys

Submitted by Dr G on February 28, 2012 - 12:05pm.

It's not a trap. You guys looking for a raid or a trap will certainly find one down the road. As I said before, certain stackers/traders have been "waiting" for a raid for well over a week now. Well, if you wait long enough you will find it. That doesn't mean you were correct. If silver gets smashed next week, will you look to lease rates and other items and say "told you so?". That seems less effective, because the nature of the metals is retracement and consolidation. That is healthy.

Stop looking for raids. Continue stacking. Enjoy these price moves. This is a fun time to be working with the metals. Everybody here is light years ahead of our friends and neighbors. Enjoy life a bit. If you are trade, use your technicals and indicators.

There should be another leg up tomorrow with the Bernank before Congress, and perhaps a move down on Friday with the BS numbers being released.

Did I buy physical metals today? You betcha. Philharmonics for $1.10 over spot at 5:30 this morning. Will I buy tomorrow? You betcha.

Titus Andronicus's picture

@ Pokersensei RE: mining shares

Submitted by Titus Andronicus on February 28, 2012 - 12:09pm. 



Pokersensei wrote:
The mining shares are still performing horribly. Crazy on a day like this!



I guess you own the wrong mining shares.  Almost all of mine are doing great!


(AG, EXK, TRX, GG, PVG, SVM)

     
      

  

 


    

      

     






  

  
  

  Dr G's picture


  
    
  
My usual...

  

    Submitted by Dr G on February 28, 2012 - 12:10pm.  


    
  

     




fx_image.ashx?relative_usd_d1.png&rev=63

     
      

  

 


    

      

     






  

  
  

  opticsguy's picture


  
    
  
Miners not participating.

  

    Submitted by opticsguy on February 28, 2012 - 12:14pm.  


    
  

     
$xau at same level as it was when gold passed through $1650

     
      

  

 


    

      

     






  

  
  

  Dark Smith's picture


  
    
  
Silver rocketing on Irish referendum, yes,but also Greek default

  

    Submitted by Dark Smith on February 28, 2012 - 12:15pm.  


    
  

     
I think Turd's right.  Irish referendum on the bailout probably isn't helping the EURUSD, which is a nice bonus for those of us stacking silver Eagles.  This probably doesn't help either:


"Greece One Step Closer to Default"


After all, when a country is technically in default, does anyone really care how technical it is?

     
      

  

 


    

      

     






  

  
  

  MrE's picture


  
    
  
Support & Resistance Levels

  

    Submitted by MrE on February 28, 2012 - 12:16pm.  


    
  

     
I have support levels on my charts at $35.67 & $36.06, it seems like a nice base was built at $36.06 this morning.


Resistance at $36.99 where I expect this party to reverse later today and trade rangebound between $36.06 - $36.99 for a while.

     
      

  

 


    

      

     




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