After being poked, prodded, felt-up, electrocuted, weighed and measured, it's good to be back behind the MacBook. It's also good to see silver rally just as predicted in last night's podcast.
Let's see I've:
- Lost about a pint of blood
- Donated some wee-wee
- Had every orifice inspected (to my chagrin, the Digital RE is NOT a more high tech version of an Analog RE)
- Been hooked up for an EKG
- Nearly froze to death in my exam dress
- Arm is already sore from my tetanus "update"
This getting old stuff is for the birds. And I've never felt like a "mid-life crisis" before but I'm going to be 49 in a few weeks and I'm NOT too excited about it...at all.
Anyway...I'm ready to get back to work...and what do I see? A continued rally in silver! In case you missed it last evening, this chart from the podcast perfectly illustrates the classic pattern of cap-and-cap but, if unable to press price lower, an impending fallback to new resistance at higher ground:
And that's exactly what happened! Almost as soon as the Globex re-opened last evening, silver shot higher and finally broke decisively through the $16.65 cap. Now you can say that all of Turd's TA is just nonsense and useless in a manipulated market and blah, blah, blah. But there's a reason why I have a website in the first place and a big part of that reason is having the experience to recognize short-term patterns.
Look, silver is currently UP 61¢ to $17.18. That's more than 3%! Why? The other precious metals are only up 0.5% and crude is down 0.75%. Silver should be up about a dime. Instead, it's UP 3.86%. Again, WHY?
Go back and listen to last night's podcast. I explained to you in detail why silver was about to break free and why it would rush to "catch up" to gold after the capping. It was already relatively undervalued by about 30¢ due to the cap. Today, we've reclaimed that 30¢ and then some. The Silver Cartel has fallen back to higher ground just as they always do and they've set up their next line of defense right where I told you it was going to be, near $17.25. I have a high so far today of $17.21. What about any of this is surprising? Once again, here's your chart from last evening:
OK, so now let's update the charts. Recall that I gave us 5-7 days to have this play out and, having reached our first price objective, I'd expect silver to consolidate at this new level before moving higher again...toward it's first really tough test of 2015, near $17.70.
As we've also discussed, gold was stymied today right near the highs of $1239 seen back on Dec 9 and Dec 10. Again, The Cartel DOES NOT want to allow higher highs, giving the appearance of a low and recovery. However, we've actually exceeded $1239 with a couple of early morning highs near $1244 so I think we are, in fact going to close above $1239 soon (maybe today), setting gold up for it's first really tough test of 2015, in the area near $1260.
And while the HUI is working off a little "overboughtedness" today, it is encouragingly staying well above its 100-day moving average. As discussed last evening, all of this leads me to expect the miners to surge higher again, as well, likely peaking in the area near 200-202 at the same time silver moves to $17.60 and gold to $1260.
More later. Thanks for your patience.