We've had a tremendous rally. We're due to consolidate. Can we extend higher?
It has been a busy morning so I'm sorry for the late start. I'll have to keep this post brief, too. But be confident and happy. We are winning and vindication is right around the corner.
It's Tuesday so you know what to expect. Right now, The Cartels are busily adjusting their public-facing positions in order to "paint" this week's CoT in whichever light they choose. With the likely addition of so many fresh shorts late last week, I was expecting a somewhat "Happy Tuesday" today as The Cartels cover a few of their tracks with buy orders. So far, this is exactly what we've seen.
Yesterday's Globex raid provided them a lower platform from which to launch today's buying program. Gold traded as low as $1659 overnight but I have a last of $1673. The Cartel will be careful not to cover too many more here as they risk tripping buy-stops above 1680. Therefore, I suspect that the current range will hold today. The Globex will likely see active Cartel selling again today as shorts are put back on post-survey. Let's hope the bottom of the range holds again. It likely will and we'll probably stay within this 1660-1680 range until The Bernank speaks on Friday. Only a fool would expect a repeat performance of JacksonHole2010 where The Bernank signaled the QE2 program which was to begin in November. He's held off everything all year, why would he change now? It would be logical to then expect a Cartel-inspired selloff post-JacksonHole. How deep and for how long are the two questions. But, who cares? Just btfd.
Silver seems a little tired after a 10% rally in eight days and some follow-on buying yesterday. However, support between 30.25 and 30.75 held overnight and I still think that 31.50-32.00 looks like a more logical staging zone for EE resistance. But you know what...it doesn't matter. Just keep buying it. Please don't use margin or anything with a tight time limit that might force you to take losses based upon shenanigans. Just keep buying the dips and taking delivery. If attempting to trade , do not over-extend yourself and be sure you allow for plenty of time. Historic shifts in market dynamics can sometimes take slightly longer to play out than anticipated and you do not want to be caught without your oars in the water.
Have a great day!