Killed Another Printer
Apparently, HP didn't have me in mind when they designed the Officejet 4500. I guess the sheer volume of crapola that I print off every day wears them out pretty quickly. So, where I had planned to give you quite a few charts today, you're left with just a few.
And to make a long story short...I think we are very near a tradable bottom. We may have already seen it, what with Hong Kong coming back online tonight/tomorrow. Maybe but I hope not. I'm hoping for one last spike down to wash out a few more longs and draw in some additional spec momo shorts. I'm so confident of future price that I actually sent in a few dollars once again to Jim & Teddy in Chicago. IF I can get this final washout, I won't be able to help myself. Besides, after blowing some dollars two weeks ago in a Vegas casino, what's a few more fiat dollars dumped onto the Comex casino?
So here's what I'm looking for. On the weekly gold chart below, you can plainly see (at least I can!) that the area between 1620 and 1640 offers considerable support. If you look closely, you can even see where we are forming a rounded, bowl-type formation from the highs of August 2011. (Of course, if you look closely, you can see just about anything. In fact, I'm pretty sure you can spot an image of Mother Teresa, too.) Regardless, as mentioned late last week, the Chinese New Year has allowed The Cartel to openly manipulate the chart in order to draw in as many spec momos as possible. One more spike down and the trap will close and we should get a pretty decent, short-covering rally. From there, gold will rally back toward the $1680-85 area where it will encounter the downtrend line from the early October highs near $1800. After breaking through, the typical action would be to "ride" it lower for a week or two before springing higher with the newly-established trend.
Before we get to silver, I want to insert a chart of DrC here. It's one of the few charts I was able to print before the HP died. Note that classic pattern that I referenced above in forecasting where gold might go next. See how copper broke the downtrend line about two weeks ago. It has spent the time since "riding" the line down, but on the other (breakout) side. What should happen next is a further breakaway from the old trend as the new trend asserts itself.
OK, so now to silver. I sure wish I could draw on this chart because several things clearly stand out. (By tomorrow, I will.) Connect the August 2011 high with the October 2012 high and extend the line. Then, connect the June 2012 lows and the early January 2013 lows and also note the horizontal support near $30. Anyway, though a drop all the way to $28 isn't out of the picture, I only give that likelihood about 1 chance in 4. Far more likely is that, with the turn in gold described above, silver bottoms right near here, somewhere between $30 and $31. From there a rally to that line I had you draw connecting the old highs, right now near $32.50 or so. Remember that the 100-day MA is in that area, too. Once again...The Big Test. This next time, I believe that silver will pass.
And simply because I was able to print them while HP was on life support, here are two other charts for you. Note that both crude and platinum have rallied back to clear resistance. If they fail to break through again on this pass, the weakness will help encourage that final washout spike in the metals I'm
looking hoping for.
Finally, just a couple of other items to consider. First this article was posted in the previous thread and I like it a lot. In fact, I wish I had written it. It discusses the coming, new paradigm in a straight-forward and understandable way. Please take the time to read it and you might even consider forwarding the link to those who are just awakening. http://theeconomiccollapseblog.com/archives/petrogold-are-russia-and-china-hoarding-gold-because-they-plan-to-kill-the-petrodollar
And I thought I would post the charts you'll find below. Someone emailed them to me yesterday. I think they come from Casey so I hope they don't mind that I'm posting them here. (If they suddenly disappear from this post, I guess you'll know why.) Look them over and, by all means, feel free to draw your own conclusions and discuss.
That's it. It's off to Sam's or Costco for a new printer...and probably some Valentine's roses for MrsF, too.