And this time I'm talking about the real thing, not General Jim in Connecticut. Let's get the week started on the right foot by sending a little cheer to our Canadian turdites.
Just a quick update this morning as not much has changed since Friday. In gold, it's quite clear that The Forces of Darkness and Evil would like to see gold stay under $1600 for a while longer. The CoT survey is tomorrow and it covers the period that begins with the beatdown day of last Wednesday. Though we clearly saw some bank short-covering late last week, something tells me that they'll want to cover more of their tracks before the close tomorrow. Therefore, let's see if they hold gold down for most of the day today before relenting. Tomorrow could/should be a "Happy Tuesday" as the EE covers and new spec buyers join the fray.
Silver seems to be fighting a different battle. It seems to me that margins are now so high that a great deal of spec long buying has been removed from the market. Well, maybe not "removed". Let's just say that with margins so high, you can get a much bigger bang for your buck by playing in other sandboxes. This lack of spec buyers is affecting momentum and is making it very difficult for silver to sustain a rally. Uncle Ted is almost screaming about how bullish the CoT picture is in silver and I'm sure he's right. He's studied the silver market a lot longer than I have. However, without buyers, silver isn't going to be heading anywhere very quickly. I fear that silver is simply going to churn along with a negative bias for a while as JPM attempts to extricate themselves from their short position that, sooner or later, the CFTC might actually force them to lessen. I still like the idea that silver found a pretty good bottom last week but, at the end of the day, that doesn't mean much. Silver must be watched closely for further weakness. Hopefully, it holds the 28.60-80 area today and then finally rebounds through $30 tomorrow or later this week.
ZH has a couple of stories that merit your attention. First, this article has some interesting technical information:
Next, you should probably read this but I have to admit, I saw the title and thought: Well, duh. What's next, a TungstenmanSachs research report verifying that the iphone has killed the Blackberry? How about a lengthy missive on whether or not asparagus makes your piss stink?
And lastly, a moment of silence for one of the world's last, remaining Stalinist dictators. Nah, screw that. The little dwarf tyrant is dead and the world is better off without him. There will be, however, some geo-political repercussions, summarized here by the media arm of The Mossad:
By the way, debka also reported over the weekend that Turkish leader, Erdogan, is suffering from colorectal cancer. Not sure how that might affect the MENA calculus but, if true, it's certainly an interesting development.
OK, that's all for now. I'll have more for you later today. TF