I've got some good stuff for you tonight. Let's get started.
First of all, my firsthand experience with MFing Global today. My puny, little account has been transferred to a firm called R.J. O'Brien in Chicago. My current positions transferred over intact but the cash did not. Now, it's not like it's make-or break money. It was only $3,100. However, where did it go? The nice people at R.J. O'Brien don't seem to know nor do they have any idea as to whether or not I'll ever "get it back". So, all the press regarding MFing Global co-mingling and plundering their client's funds is apparently true. My $3M as well as everyone else's cash has been, for lack of a better term, stolen. Not cool.
So who are the thieves? Well, obviously MFing Global executed the theft, that much we know. But who received it? And why do they get my money instead of me? And isn't it a crime to receive stolen property? Unfortunately, I'm sure it'll be quite some time before we get any answers. I'll keep you updated regarding this ongoing saga as we go through this month but, for now, that's all I know.
OK onto the charts and, boy-oh-boy, do I have so good stuff for you tonight. First of all, do you recall this post from two weeks ago tonight? I encourage you to take a moment and reacquaint yourself with it:
The "money shot" of the post was a prediction of a 10% rally in gold over the next 5 weeks or so. Well, we're almost there. At $1795 in the Dec11, I just need another $15. (I sure hope I get it. I don't want those loser delta-bravos over on the Kitco boards to start whining about me again.) The chart sure looks like $1810+ is in the cards so I'm feeling pretty good right now. In fact, take a look at the chart below. Note that gold is once again breaking UP through the 3-year, QE-world channel. IF it can hold this position through the week, a move back to the old, all-time highs of 1920 would seem a near certainty. And quick, too. Probably before Thanksgiving.
Wow! $1900+ by Thanksgiving would be great, wouldn't it? Yes, it would but what's really got me worked up tonight is silver. First of all, back to the post from two weeks ago. The gold chart below is lifted and reprinted from that post:
As I wrote in that post, note that gold had finally broken through the downtrend line from the September highs. Resistance then became support and gold rode the trendline back down before breaking away and moving higher. This chart was the basis for the whole "10% rally in November" stuff. Look at it very closely.
Now, take a moment and look at the chart below. See any similarities?
I think the chart pretty well speaks for itself. If silver now follows gold it, too, should rally at least 10%. Let's see...$35 + 10% = $38.50. Hmmm. $38.50, huh? Why does that sound familiar? Oh, yah...I've been saying $37-$39 silver for the past two weeks, too! Here's another perspective, this time on a daily chart:
In fact, I'll raise even raise the bar a little higher. Go back up to the 12-hour chart above. Though $37 will provide resistance and $39 will provide even more, I think silver could trade all the way to the new "target" of $41 before stalling. By when, you ask? Let's shoot for December 1.
So, to sum up...Gold looks great. It's a near certainty that it will soon trade to my $1810 target but I don't think it's done there. By closing this Friday above the 1790-1800 area, gold will be primed for a very quick catapult back toward the old all-time highs above 1900. Silver looks to be almost exactly where gold was two weeks ago. If it continues to follow the same pattern as gold, it will trade to $39 before Thanksgiving and perhaps even into the low 40s by 12/1/11. Do not expect a smooth upward ride. Volatility is only going to continue to increase but, until these patterns break down, the smart move would be to buy the dips.
Trader Dan has given us a great HUI update:
And "Tabberto" turned some of us onto this earlier today. Coming soon!
OK, that's it for today. Let's see if we can break $1800 overnight before the London boys take over. More in the morning. TF