GDP Lower Than Expected? NO!!! Really?
In a stunning development, Q1 GDP in the U.S. came in under expectations at 2.2%. Since this number has undoubtedly been "massaged", one must wonder just how bad things really are.
Conveniently, the ensuing pop in gold surged price through the nasty 1660 level. We are now having a bit of trouble with 1665 again as there seems to be an effort afoot to keep it below there. (Interestingly, most Turdites will recall that 1665 is the gap-level open from back on 8/7/11, after the S&P downgrade of the U.S.) Regardless, moving through and closing above 1660 today will be a very important first step for our nascent recovery. The next hurdle (for next week?) is 1680.
Silver continues in a trade centered around the support/resistance area of 31.25. Closing above there, particularly closing above 31.35, would set the table for a run at $32 next week. Once that level is bested, we will be ready for Battle Royale II in May.
At this point, I want to complete my responsibility for my adamant trade "recommendation" back on Wednesday. Anyone who listened and bought silver near $30 and gold near $1635 is now on their own. I'm glad you made some money and, if I were you, I'd hold here with stops back near your entry point. That said, nothing wrong with "ringing the register", either. At any rate, It's good to be right again...for once.
The GDP numbers are also playing heck with The Pig this morning. Again, you should be watching this very closely. A sharply falling Pig would catch many by surprise here and would, obviously, have a positive impact in PM prices. IF the POSX falls much farther below 79, some stops will be run and we will see a quick drop toward 78.50 and then 78. IF 78 fails, we're looking at 75. Needless to say, a POSX at 75 does not translate to $1660 gold.
And you should be watching crude, too, particularly at these price levels. A decisive move through $105 and it's back on. We'll soon be looking at $110 dollars again and $4.00/gallon gasoline in the U.S. Of course, the O'Bomney administration would very much like to avoid this ahead of the election so you must expect all sorts of dirty tricks to suppress/cap price (SPR releases, etc.). However, the global crude oil market is so massive that their tricks are limited in their impact. Again, watch this closely.
One more thing before I wrap up. I couldn't help but notice the overnight discussion on the previous thread, so, let me tell you what I did this morning. I called Andrew Maguire. Why? Because I could. I had read all of the nonsense disparaging him and his (our) motives and I thought, "Gee, I wish I could call him to thank him for putting up with all of this incessant crap". Of course, because of the amazing surreal twist of fate that has made me "Turd", I actually now have the ability to call him, so I did. And I thanked him. Thanked him for his expertise. Thanked him for his willingness to put himself out there. Thanked him for his willingness to be subjected to lies and ridicule, all the while dealing with lawsuits, lawyers and gag orders, all for the ultimate benefit of US as he does his part in the fight against The Bullion Bank Cartels.
Let me tell you something: He's a great guy! He's 60 years old (Sorry, Andy, if you're reading this) and he doesn't need this crap. He's been trading for 30 years and doesn't need me, you, or anyone around him, other than his family. But he does it anyway and now he actually takes my calls. Earlier this week, we spent about an hour visiting about a variety of things and when we finished I thanked him because I felt like I had just completed a graduate-level trading course. The guy knows more about trading and the physical bullion market than I will ever know and yet he's willing to freely share his experience. I could go on and on but, for the sake of time, I won't. Just trust me when I tell you that Andrew Maguire is the real deal and he's working on a number of things behind the scenes, the new Chinese Physical Silver Exchange is one of them, that are going to greatly impact the fair pricing of the precious metals. We are all in his debt.
Be sure to check back later today for the release of the latest TFMR podcast. It's a return visit by "Ranting" Andy Hoffman and, having already listened to it, I can tell you that you will certainly enjoy it. The part where I ask him about those who maintain that "silver is not money" is priceless. Those two minutes alone are worth the price of admission (which is free anyway).
Have a fun day. TF