Having only just now recovered from an early morning trip to The Waffle House, I'm ready to tackle the day.
First up, it seems like it has been so long since I've:
- Made a short-term prediction
- Been right
That I feel compelled to tout this one:
Submitted by Turd Ferguson on August 15, 2012 - 7:50pm.
Kinda gotten out of the habit of making short term predictions but here goes.
I think the metals look to move higher overnight/tomorrow. Crude is currently basing above the old double top at 94.25 and the grains are stronger, too. Eventually this will translate onto the short term metals charts that look increasingly positive. A move through the 100-day MA in gold (near 1612) would send price back toward 1620 and beyond.
Let's just see now if gold can get above 1620-25 and if silver can finally get through 28.20. The algos will likely game it back down lower later today but we'll see. I spoke with Winston again this morning and he assured me that demand for physical metal remains "robust" in London and that "every dip below 1600" is being met with increased orders in size. As this physical market continues to create a rising floor in the paper market (see the higher lows on the charts below), eventually this buying pressure will burst the caps at the top of the now 100-day price ranges. WHEN that happens, momentum-chasing algos will flip long and we will accelerate to the upside. This is inevitable and only a matter of time.
Helping things along is crude. Look closely at the chart below and you'll see that we are simply continuing a pattern of breakouts and consolidations that stretches back to late June. As it appears that we have begun another breakout period, the next logical price target appears to be $98-99 before another period of consolidation. IF trend continues, there's no reason not to expect $98 crude at a minimum by late next week.
Just a couple of news items to review. First here's a story on David Walker and the fine work he is doing. I've met David before and he is a very nice gentleman. A true non-partisan, he couldn't care less about who wins the upcoming election, he just wants to see something done regarding the debt and deficits. http://finance.yahoo.com/blogs/daily-ticker/u-government-debt-grows-10-million-minute-david-160752953.html
And then these two ZH stories regarding gold demand. These stories add credence to what I mentioned above about global, physical demand and the whole "China making a new currency" idea that we discussed yesterday.
And this is a really good, Chris Martenson article that everyone should take the time to read: http://www.peakprosperity.com/blog/79470/what-dowhen-every-market-manipulated
Lastly, I feel I must ask you again to keep the comments section of this post as close to on-topic as possible. As we near election season, I know that emotions are high (and getting higher) and it's easy to steer off onto a tangent. Therefore, please try to keep this discussion here focused on the metals and the economy. Discussions about prepping, politics, guns, ammo and insurrection must be taken to the forums. Always keep in mind that this is a public site. While it might be fun for you to type up and post your wildest thoughts regarding the future, you are not the one at risk of seeing black sedans pull up in front of your house. I am. So, again, please try to keep this main page focused on metals and take all other, coincident discussions to the forums. Muchas Grassyass.
It's already noon EDT so I'm going to go ahead and send this now. I hope everyone has a great day. Clearly, this week was not the "explosive, historic" one but next week holds promise. Be right, sit tight and keep stacking.