Wow, what a nice day this turned out to be. When I hit the rack last night, it appeared today was going to be a real doozy. Instead, the metals reversed at around 4:00 a.m. and then rallied like crazy on the Comex. Did I wake up in some kind of alternate, parallel universe?
Seriously, today was quite unusual. All the negativity and fear of last evening morphed into a genuine, "risk-on" day with metals, crude and commodities all charging higher. Stocks even rallied as the S&P rose over 23 points! The only thing that assures me that I did not slip through a wormhole overnight is the under-performance of silver. Crude up $1.50 and gold up $35. Silver up 50c. All is right in the EE-controlled world.
That's not to say that the charts don't look good. In fact, they look terrific, particularly gold. Early last week, I stuck out my neck with a call of a 10% rally in gold from 1650 to 1810 before November ends. So far, so good. We're about 2/3 of the way there. I'm expecting some resistance around 1765 and again near 1795. However, the chart looks great and the fundos are, of course, positive. Keep the faith.
While silver also looks good, it's just not as compelling as gold right now. Getting back above 33.60 was significant and now, if it can handle 34.75, it looks poised to tackle last week's highs at 35.70. If/when it gets through there, our target of 37 will be in sight and, with enough momentum, it could still see $39 before significant capping/selling comes in.
I leave you tonight with another fabulous commentary from Jeff Nielson. Please take the time to read it.
Have a great evening. TF