I don't know about you but ole Turd had a good day. It looked a little dicey at 7:00 am but the PMs ended up with some stellar performance. Anyone willing to trust in The Turd this morning is already up quite a bit of fiat. That makes me smile. But today is in the books and all that matters now is tomorrow and the next day and the next day...Where do we go from here? Let's start with gold as the chart is quite compelling.
Take a look at this hourly chart:
There seems to be something quite important going on here. Working from left to right across the chart, note the angles of the trendlines. The declines got flatter and the ascents have gotten more steep. Now, granted, the sample size here is pretty small...two ups and two downs...but, nonetheless, this tells us something. The ferocity of the 36-hour decline early last week was met with an almost equally steep ascent Wednesday into Thursday. Note, then that the next decline lasted about two days and was "flatter" than last week's decline. Finally, note that the rally off of this morning's low is considerably more steep than last week. In fact, gold lost almost $100 in the 48 hours from Friday morning to this morning but it has already, in 12 hours, put about half of those losses back on. Lastly, note the almost perfect double-bottom near 1800.
Again, because of the smaller sample size (one week's worth of price action), it's hard to go overboard with excitement. What we can say, however, is that this chart shows us that, for now, the buying is gaining in intensity while the selling is waning. Combine that with the aforementioned double-bottom and it sure looks to me like gold is trending higher for the rest of this week. Your next target is $1860. After besting that level, we'll take aim at the highs from early last Friday, near $1890.
This silver chart is looking better, too, but not as friendly as gold. The area between 41.80 and 42 appears to have some technical significance so I would look for some resistance there. IF it can clear there, it will have clear sailing toward last week's highs near $43.
Part of the reason my enthusiasm for silver is somewhat tempered is the crude chart. Though it has rallied quite strongly for the past month, it's reaching a rather critical point. I currently have no positions in crude. If I did, I think I'd be looking to lighten some here. $91-92 is going to be some pretty tough sledding and, if it rolls over, it could easily drop back down into the lower 80s. I think it will find incredibly strong support there, though, so I'd be looking to re-establish a position if/when it gets there.
OK, now here's the part where I come to you with my hat in hand. Frankly, the site is struggling a bit financially. Our current adsense revenue is barely enough to pay the bills (servers, tech support, site improvements etc.). I am working on ways to enhance our profitability but, in the meantime, I feel I must ask for a little help. Not much. Heck, if everyone who visited this site on a daily basis donated an actual $0.02 instead of just their rhetorical two cents, we'd be floating in cash. All I ask tonight is that if you have found value in this site and if this site has helped you financially and/or educationally, please consider "feeding the turd".
One of the ways I hope to drive more revenue to the site is through this new podcast feature. Please understand that I am doing this for you, not me. Remember, I am just the facilitator. You have made this site popular. You are the reason I am able to communicate with people who, as recently as one year ago, would never, ever in a million years have returned my calls. My hope is to give you access to these people through the podcasts. I figure that if I want to talk to them, then you'd probably like to talk to them, too. Any question I ask is probably something you'd like to have answered.
To that end, I've already lined up a pretty impressive list of future interviews. My hope is to record and release them on a bi-weekly basis. We're going to be building a dedicated "podcast" page for the site. We will even be developing a smartphone app that all Turdites can download for easy access to the information. This, too, will cost a few bucks, so, as mentioned above, any "assistance" you can provide will be much appreciated.
Thank you all again for affording me this amazing opportunity. I often describe myself these days as "Jimmy Stewart". If you recall, Mr. Stewart often played the role of the "ordinary man caught up in the extraordinary situation." This pretty well describes my reality at this point. My hope is that, when the movie is made, I get to star as myself. I'm kind of hoping that Rachel McAdams or Jessica Alba will play the role of Mrs. Ferguson. We'll have to see on that one. I doubt that the real Mrs. Ferguson would be too excited about that.
Anyway, have a great evening. Watch the Asian Globex closely and wait for the regular 3:00 am LBMA beatdown. If tomorrow we open the Comex above 1850, we could end up having a pretty fun day! TF