Is Silver Winning The Battle?

Tue, Feb 28, 2012 - 10:27am

Very impressive price action so far today in the metals. Though gold is still being restrained below $1785, silver is rolling and is currently trading above the all-important $36 level. The is all well and good but, as you might imagine, it's what happens next that matters.

This is The Battle Royale. Longtime Turdites will recall the significance of past duels with the number 36. In this instance, we also have the convergence of two, powerful and significant lines of resistance in the same area. Moving through and closing above $36, when it happens, will be immensely significant and will lead to an even greater acceleration of momentum to the upside. $40+ silver awaits.

Gold would also be at its Battle Royale level this morning were it not for the three, consecutive 2:20 pm Globex trim-jobs that were described in the previous thread. $1800 - $21 = $1779 (current price). You may think I'm crazy or over-stating things a bit but you must remember: Silver is JPMs problem. Gold is the problem for every central bank in the world that relies upon unlimited fiat creation. In the micro, The Cartel is attempting to keep gold below 1800 as they know that any close above that level will induce even more spec money into the pit and rapidly drive gold back toward its all-time highs. If they can stall this momentum for a few days, perhaps The Bernank and LTRO will "disappoint" and gold will move lower on its own volition. We shall see.

Just a couple of news items for you today. First, Jeff Nielson wrote the piece below last week. YOu may have missed it. If so, please double back and read this very important article:

And I don't often cite Greg Hunter here because he is usually posted and linked in so many other places. However, in this instance, he's right "in our wheelhouse".

As I close, gold is surging to 1785 and silver is 36.36, even while The Pig is rallying, ostensibly because of this, I suppose:

Hold onto your hats. This day keeps getting crazier! TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Feb 28, 2012 - 10:29am

in the club

with mrF

Feb 28, 2012 - 10:33am


The mining shares are still performing horribly. Crazy on a day like this!

Feb 28, 2012 - 10:38am

Where's the Numbers

Anyone have a link to H's spreadsheet? It looks like the metals are trying to make a move towards my targets to win me a yellow hat!

Feb 28, 2012 - 10:38am

Silver made a smaller inverse

Silver made a smaller inverse head and shoulders at 35.00-35.60 that took it to 36.20. Then it completed a Fibonacci move to 36.40. It moved into the upper portion of the Andrews Pitchfork with this move. Retracements have been only 23.6% lately. It might not drop below 36.08 from here.

Feb 28, 2012 - 10:39am

Central Banks

I would add silver is also a central bank problem since it competes against both gold and paper. Remember, Central Banks control most of the world's physical gold and infinite paper, but do not control physical silver. Central banks' number one objective is control.

Feb 28, 2012 - 10:39am

$36.40 new intraday resistance?

Sure feels that way.

Torpedo Fish
Feb 28, 2012 - 10:44am


feels like a trap to me

Titus Andronicus
Feb 28, 2012 - 10:46am

Dear $36, this is for you.

Video unavailable

(I know it's not a sure thing, but I grew up on this 70s soul music and I love this song. It was going through my head as I was watching my the nice numbers on my trading platform. And it sure looks to me like silver does not want to go back down.)

Eric Original
Feb 28, 2012 - 10:47am

I know I had 1792.47 in the

I know I had 1792.47 in the gold contest. I'm feeling pretty groovy right now....

Fred Hayek
Feb 28, 2012 - 10:48am

Is this a reluctant to have all their shorts on record Tuesday?

Hasn't there been a suspicion that Tuesday's generally show a strong rise in prices because any new shorts dumped on the market then can't be covered before the commitment of traders report comes out?

Between this and Ben Bukkake speaking tomorrow, well, that's a fair dose of rocket fuel.

H - original
Feb 28, 2012 - 10:48am
Feb 28, 2012 - 10:49am


This is a great time for the EE to pile on some big shorts, the profits will be huge and the small investors will be cleaned out again.

Feb 28, 2012 - 10:52am

Gold is building up a

Gold is building up a Spring-Coil. If it punches through, watchout!

It may fail, but my guess it would be short-lived and the assault on 1785 would be back quickly.

Feb 28, 2012 - 10:54am

No trap here folks

SLV long on the Jun '12 at 35,36 strike. Somebody wants it higher, and we're like the little fish that kling to the sharks underbelly along for the ride. However, I do believe the EE will try a beatdown on the "disappointing" LTRO uptake - if it should be less than 500B Euros.

That's probably the next good buying opportunity.

Feb 28, 2012 - 10:55am

Mining Shares lagging AGAIN

Even on a major breakout day these things can't seem to catch a bid. It boggles the mind...

Feb 28, 2012 - 10:55am

Yes EE maybe trapped

This is a great time to get upside momentum after being range bound for so long. Like a breath of fresh air. Stop cowering - "over the top - CHARGE!" ;-)

Feb 28, 2012 - 10:57am

Now is the Time to go All-In w/ your Gold and Silver Investment

Barry is super pumped.


Yes, now is the time to go All-In with your gold and silver investments. Last week I provided you the four key fundamental reasons for the coming break-out move for precious metals. The gold & silver price action for the first two months of 2012 tells me that this year is going to be a record setting year, and that a substantial rally is coming very soon.

To answer some of our clients concerns of a possible 10% price pullback from current levels, I think the possibility of a major Gold/Silver correction taking the Gold price back to the $1,600 level, or Silver back under $32 per ounce, has about a 5% chance. So, make your purchases now, not when gold and silver make new all-time highs. I believe that within the next six months, today’s gold and silver prices will look like the good old days. With this perfect storm for precious metal investors, gold should set all-time highs above $2,000 per ounce with Silver reaching $50 per ounce this year. Gold is trading at $1,776, up $210 (13.45%) while Silver is at $35.33, up $7.46 (26.75%) since Jan 1st, less than 2 months since the start of 2012.




Feb 28, 2012 - 10:57am

I think it's a trap

Silver has gone up very fast and very quickly for my taste, I would hold-off here and wait to see what happens next.

Loud Noises
Feb 28, 2012 - 10:57am

Good Morning

Its a nice morning and I'm sure there are a few smiles around Turdville. Not sure if this has been posted yet but its both hilarious and infuriating. Make sure never to use Google maps or write illegible notes.

Number 47
Feb 28, 2012 - 10:58am

After fear scaring me out of

After fear scaring me out of my position this morning at 35.85 I have now gone short at 36.425, I can't see this staying up before Bernanke tomorrow. We're way overdue a beatdown, hopefully Blythe will provide.

Feb 28, 2012 - 10:58am

So what to buy?

I never buy into strength. On days like this, I just watch the ticker and stroke the stack.

But I have decided (even after a completely blown call in 2011 - I "blame" Doug Casey) today to go long again on TBT. With the UST 10 yr down below 1.90, I think now may be the time to "short" with that fund. Nat gas is still cheap, but I think it may, like housing, still be in for some downward chop.


ClinkinKY Vagabond
Feb 28, 2012 - 11:00am

My guess for Ag- $36.79 - I wear a size 8 Turd:)

Where's the Numbers

Submitted by Vagabond on February 28, 2012 - 10:38am.

Anyone have a link to H's spreadsheet? It looks like the metals are trying to make a move towards my targets to win me a yellow hat!

Feb 28, 2012 - 11:00am

Crowing "Trap", "RAID Coming"

Crowing "Trap", "RAID Coming" ----- does nothing. Please remember the prior 9 years of this bull run. When it wants to run, it does.

Jdawg Titus Andronicus
Feb 28, 2012 - 11:04am

Say Good Bye to Silver in the Thirty Five Dollar Range

Folks, believe me when I tell you that silver will be at $50 by May 24, 2012. Oh!!! by the way this only my conservative view.

I got a wild side also. It gonna be a wild thing (silver)

Video unavailable
Titus Andronicus Pokersensei
Feb 28, 2012 - 11:09am

@ Pokersensei RE: mining shares

Pokersensei wrote:
The mining shares are still performing horribly. Crazy on a day like this!

I guess you own the wrong mining shares. Almost all of mine are doing great!


Dr G
Feb 28, 2012 - 11:09am

It's not a trap. You guys

It's not a trap. You guys looking for a raid or a trap will certainly find one down the road. As I said before, certain stackers/traders have been "waiting" for a raid for well over a week now. Well, if you wait long enough you will find it. That doesn't mean you were correct. If silver gets smashed next week, will you look to lease rates and other items and say "told you so?". That seems less effective, because the nature of the metals is retracement and consolidation. That is healthy.

Stop looking for raids. Continue stacking. Enjoy these price moves. This is a fun time to be working with the metals. Everybody here is light years ahead of our friends and neighbors. Enjoy life a bit. If you are trade, use your technicals and indicators.

There should be another leg up tomorrow with the Bernank before Congress, and perhaps a move down on Friday with the BS numbers being released.

Did I buy physical metals today? You betcha. Philharmonics for $1.10 over spot at 5:30 this morning. Will I buy tomorrow? You betcha.

Dr G
Feb 28, 2012 - 11:10am
Feb 28, 2012 - 11:14am

Miners not participating.

$xau at same level as it was when gold passed through $1650

Dark Smith
Feb 28, 2012 - 11:15am

Silver rocketing on Irish referendum, yes,but also Greek default

I think Turd's right. Irish referendum on the bailout probably isn't helping the EURUSD, which is a nice bonus for those of us stacking silver Eagles. This probably doesn't help either:

"Greece One Step Closer to Default"

After all, when a country is technically in default, does anyone really care how technical it is?

Feb 28, 2012 - 11:16am

Support & Resistance Levels

I have support levels on my charts at $35.67 & $36.06, it seems like a nice base was built at $36.06 this morning.

Resistance at $36.99 where I expect this party to reverse later today and trade rangebound between $36.06 - $36.99 for a while.

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