Gold and Silver Still Rangebound
Man oh man, The Turd's head is spinning this morning. There is so much going on that we need to cover but there is not very much time. So, I'm going to split this content up into separate threads. This thread contains the latest charts. The threads that I will begin below are also important, though, and require your attention.
FYI, this is also kind of a test run for how this site will be changing next month. As the name implies, TFMR is a metals "report". I, your humble correspondent, will scour the news and blog wires every day and present to you individual threads where you can contemplate and discuss the issues. The comments section of the "report" threads will also be changed to a threaded format so that members can interact and discuss things on a chronological basis. At least, that's the plan. If Rule #7 of the TFMR guidelines isn't followed, however, I will switch things back to the way they are now.
So here are your charts for today. Once again, I start with the POSX. As you can see, there seems to be very little interest in taking The Pig out of its pen and through 79.60. However, a couple of headlines could blow this all away real quick so be careful.
Gold and silver tried to rally earlier this morning but, at present, they have been beaten back. Silver is particularly funny. Once again, it was allowed to rally exactly to $33.98 before getting jammed lower. You can see on the charts to the right that it even dropped all the way to 33.50. At the current time, I still have no trading positions and boy does that feel good. IF I can get the selloffs that I'm looking (hoping) for, I will be buying, though. We'll see.
Lastly, a few words about silver lease rates. As you can see on the chart below, rates have continued to decline this week and, as of yesterday, the 1-month rate was at -0.36%, just a scant 4 basis points from the seemingly critical -0.40% level. I've noticed quite a bit of discussion about silver lease rates, not only here but all over the PM blogosphere and I'd like to touch on a few things:
- Monitoring gold and silver lease rates is an important task but not the sole indicator of an impending raid.
- I'm pretty sure I was one of if not the first person in the blogosphere to connect the lease rate "dots" back in December and correctly warn you of the possible, impending beatdown.
- Sharply declining silver lease rates and a sharply rising EE net short position should give you cause for concern regardless of what anonymous commenters might say.
- I know that I'm not a paid troll or disinformation agent. I can't say the same for everyone else.
So here is your chart. IF rates dip below -0.40%, I will seriously consider buying some puts. IF silver dips toward 32 or even 31, lease rates turn higher and total OI drops as the EE covers shorts, I will be an aggressive buyer of paper and physical silver.
That's all for now but look for some updated charts later today. TF