Ridden Hard and Put Away Wet
I don't know about you, but I'm ready for this week to be over. The title of this thread refers to an old adage of the American West and it has to do with horses which, as you might know, need to be cooled and "walked" after a strenuous ride. Pretty well sums up how I feel. I need to be cooled and walked after this strenuous week. No time for that yet, though. We've still got to get through today's trade and, later on, I'll have some very important information for you.
Your main concern today should be the close of silver. The closing price will be quite important for the overall look of the chart heading into next week. Right now, the chart doesn't look too bad, as you can see below.
Note that, as of yesterday's close, this weeks "candle" was still white (on some charts this would be green).
- Also, I should point out here what this chart shows. The "wick" or "tail" of the chart shows the true range of prices during the week. The shaded area is the difference between the Monday opening price and the Friday closing price. The chart is then colored white or green (positive) or blue or red (negative) based upon whether silver was UP or DOWN on the week.
So, again, as of last night, silver was still UP on the week and the candle was white (positive). You can see, though, that the price range has been nearly $4. What we don't want to see today (and what The Cartel does want to see) is a steep drop that will not only paint the candle blue, it could also drop the lower end of this week's range BELOW the lower end of last week's range. A technical analyst would call that a "bearish engulfing pattern" and it would most assuredly flip the WOPRs into a "sell-first" mode next week.
Last week's high in silver was 35.59, last week's low was 33.52 and it closed last Friday at 35.33. A close today above $35.33 and we can all be very pleased to have dodged a dangerous technical bullet. A close below $35.33 would not be great but, as long as today's trade doesn't drop below the lows of Wednesday, the resulting chart won't look too terrible. The thing to be concerned about is a close below $33.52. The Forces of Darkness would LOVE to see that happen but time is running short and, more importantly, buyers continue to appear when silver approaches $34. Let's just hope we survive this day and move on to next week.
As you can see below, the gold chart already has a nasty, blue candle on it and that is unlikely to change today. I'm also reprinting below a chart I added yesterday. At this point, we have to expect more selling next week and a move down toward 1600-1650 or so appears possible. I'm praying that that happens as I will be buying with both hands IF it gets there.
Lastly, if you're looking to kill some time this morning, you should click this link and watch the video that is contained within the story:
OK, that's all for now. I have to go prepare and record this week's podcast. PLEASE BE SURE TO CHECK BACK THIS AFTERNOON FOR THE RELEASE OF THIS VERY IMPORTANT PODCAST.