I'm know I'm overdue. I'm really in a stew.
Sorry for the late start today. Turd was up too late last night watching basketball. Because of the time, I'll dispense with the usual commentary and head straight to the charts.
First of all, I'm pretty sure that gold bottomed yesterday. Almost everything points to a bottom and, with that last piece of the puzzle (spot vs front-month backwardation) having fallen into place on Wednesday, all that we need now is some chart confirmation. Well the charts look pretty good to me! At this point, gold just need to move back above 1665 and hold for a while. This will trip some buy-stops and send gold toward chart resistance and the 200-day moving average near 1680. Once back above there, we'll be back in business.
Silver is also forming a bottom. Notice the emphasis on forming. Though yesterday could have been the bottom for silver, I can't rule out a couple more stabs at $31, maybe even a few hours below $31. Nonetheless, with gold trading higher, the pressure on silver will lessen and the bottom will be in there, too.
With the HUI at severely beaten down levels, I thought that today might be a good time to re-visit a few of our favorite miners. I don't have the the time to discuss all of them but these three have been Turdite favorites for some time now and all three look to be rather attractively priced right here.
Lastly, I mentioned this several times in the comments section yesterday and I'm going to do so again here. This is your homework project for the weekend. Because of the recent backwardation in both gold and silver, it is imperative that you make every effort to understand what backwardation means and what the implications of backwardation are. The best explanation I've found is this FOFOA post from summer 2010. As with most FOFOA articles, it can be a bit overwhelming in detail but I urge you to study it and read it several times if you must.
OK, that's it. As I close, I see that the metals have charged higher while I've typed. What a pleasant surprise! It sure is nice to give everyone a "bottom call" and then see higher prices right away. I'll be around on the blog this afternoon as I am very interested in both the OI numbers from yesterday and the CoT report. I'll add any observations I have into the comments section of this post. Have a great Friday and a great weekend! TF
p.s. I might as well just post this before DPH does.