It's 3:20 and, as I type, the Dow is down 392. It'll probably get worse into the close and folks who were trying to hold on, hoping for a late-day comeback, give up and sell.
Into tomorrow, we are about to discover the degree to which gold, and to some extent silver, are now regarded as a safe haven currency instead of a commodity. If an even steeper, liquidating plunge develops, you'll know it's the latter. I don't expect that, though. The last three years have opened the eyes of millions to the fallacy of keynesianism and unlimited fiat money. Therefore, I'm looking to BTFD.
Before we do, we must take a moment and grudgingly admire the handiwork of The Forces of Darkness. Undoubtedly, the selloff in silver began as a long liquidation but, just as assuredly, it was helped along by The Wicked Witch and her minions.
My biggest concern going forward is that a drop of this magnitude raises the specter of a margin hike. It shouldn't be necessary because today's drop was not larger, on a percentage basis, than the drops back in May. Don't be surprised, however, if the crooked C/C/C uses this occasion to raise them anyway. In the end, though, total silver open interest is still 25% less than late April so it's going to be very hard to get the strong hands that bought near 34 and 35 to run away. Everyone that bought in the past week or so probably got blown out today already so, chances are, further declines will be met with more buying than selling.
With that in mind, where should one attempt to BTFD, if so inclined. To me, the levels are quite clear. Take a look at the charts below:
For now, I'm just sitting on all of the cash I am grateful I raised yesterday. After I post this thread, I'm going to call Lind and put a couple of "stink bids" in, hoping to get filled on any overnight selloff toward 1635 and/or 38.
That's it for now. Keep checking back for more updates. Turd out.
