Another Winner!

Mon, Jul 18, 2011 - 10:29am

I've got the re-crossing of $40 silver at about 3:09 EDT last night. Someone just won another autographed yellow hat. But who? I have no idea, frankly. I know someone out there in TurdLand has a spreadsheet of all the picks. Please post the winner in the comments section of this blog.

Our precious precious metals are sure looking fine this morning. Copper, crude and the grains are all down so it is clear that the world is looking at the PMs as safe haven plays...which they are. It's nice, too, to see that silver has shrugged off the "commodity" tag and is soaring alongside gold. Look for this to continue.

Now that silver is back above $40, look for the big money that left the pit back in May to come pouring back in. Not right away but in stages. IF silver can hold its position today and close above $40, the stages will be set for a run toward 42-42.50. It may briefly pause there before continuing higher. A close through $43 will force more dollars off of the sidelines and back into silver. Like April, we will likely see an accelerating move toward 48 and even 50. Do not think for a minute that the Forces of Darkness won't try everything in their power to paint a double-top at/near $50. Be very careful as price approaches that level. However, that's a topic for another day. For today, just enjoy the fact that silver is back above $40 and looks poised to mount another run toward 50 and...eventually...beyond.

Of course, gold looks fabulous, too. Hanging in there just above $1600 as I type. The simple fact that raiding and profit-taking at the psychologically significant sixteen hundred level hasn't occurred is interesting. If gold stays above 1600 for another hour or so, you may see buyers gain confidence that a quick drop will not be forthcoming. IF this happens, gold should skip away toward 1610. In either event, this is big news! Gold above 1600 is headline-grabbing material and it is sure to attract attention. It will help provide bids for the miners and it will provide spillover strength into the silver pit. A virtuous cycle, so to speak. Let's watch and see.

Have a great day. Rejoice and be happy. We are winning! TF

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Jul 18, 2011 - 2:24pm

When to call an entry point

What works for me is to scale in slowly. If the price goes up, buy more. If the price goes down, buy more. Back in the day when I was scaling into gold, I'd make a purchase for every $10 move. If it moved back through one of my buy points, I didn't re-buy, only if it was a new range. That worked great for establishing a long term position. Of course, I wish I'd gone all in at the beginning now, but it could have been different. My goal was preservation of capital.

And kudos to the longs who have hung in there. I bailed fairly quickly on my trading position, leaving a good bit of cash on the table. OTOH, I was green for the year and couldn't resist the temptation. 'Tis a bummer to be sitting at the station watching the express train's tail lights. Thank goodness for core positions as they do lessen the sting.

Is it better to be left at the station but still in the green, or underwater but well situated on the "to the moon" express?

Jul 18, 2011 - 2:23pm

What an amazing month for

What an amazing month for PM. I waiting for my entry point too.

@silvertree. . . Beautiful!

Jul 18, 2011 - 2:22pm

@ snoochieboochies

Re: Fingers crossed...

So, if we dont close higher than the psychological barriers of $1600/$40, then suddenly the trap door opens and we all fall down the mine shaft? I don't think this is the case. Trading on a number of days over the past while has been like today and we've only crept higher in the day(s) that followed. There are just as many balls in the air today as there were last week or the week before that. Don't get me wrong, if we were gapping up $25-50 dollars per day (which could be the case soon) I'd be very concerned that some profit taking and/or a huge raid could occur.

That being said, my original thought that the EE would try with all their might to not let gold make a new high (and paint a dble top in the process) is still in the back of my mind somewhat. Yes, we are higher, but we have only overshot the old high by $20-25, which is peanuts in the scheme of things. IMHO, it is not too late for the EE to manipulate the charts lower (that is, if they want to at this stage). Or perhaps they let things boil over and the charts go parabolic before making a far more drastic move? It is still too early to determine with any certainty what their next move is (or to pull out the champagne for that matter). Stay nimble...

Jul 18, 2011 - 2:13pm

100 Professionals

And not a one raise their hand!!!! What a pity. Stackers keep stacking.

Dr G
Jul 18, 2011 - 2:12pm

Our news media is so screwed

Our news media is so screwed up.

"iPhone falls from skydiver's pocket" is actually a CNN story. Really? Who cares? Our economy is going to hell in a handbasket. Idiots.

Jul 18, 2011 - 2:11pm
Jul 18, 2011 - 2:11pm

@OC15 - I think the real manipulation of would be 'kings' is

Real estate ... If they own the ground underneath every ones feet - prices of anything else means nothing.

Now I'm talking LONG LONG TERM end game. Just a thought regarding my thinking that the whole economic crisis was carefully planned and the the evil hand behind the curtain is an international group of elite azzholes playing everyone and everything against themselves. WTFDIK

Why is EVERYTHING real going up in value except for real estate and who will ultimately end up owning and therefore benefit from the outcome say in the next 10-20 years? We will be serfs and they won't care about the price of anything because they can just raise the rent!!!

Jul 18, 2011 - 2:01pm

Everyone has to deal with their own fear.

"When to call an entry point by vinzz

9 min 39 sec ago

So freakin' hard to decide where/when to enter. I'm on dry powder since May, awaiting the summer doldrums to pass. Any suggestions here? Like someone here already mentioned, I'm afraid to get suckered in now, just before a pullback."

That's the market, ups and downs.

Rule of thumb is if I buy, it will go down. If I sell, it will go up. Never fails. Doesn't stop me. Want to borrow my balls?<--girl

Entry level seems to matter more if you are dealing with the stock side rather than the physical. Is that right, stackers?

Jul 18, 2011 - 2:00pm


Looks like were painting a 3 drop raid and now comes the FUBM ;-)

Jul 18, 2011 - 1:57pm

I second that emotion

"Fingers crossed that we close above $40 today!"

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