I think we are off support at 12.00 and are heading up from here. Lot's of talk about Iran getting nuked is circulating. Silver right now...40 min before London opening has just peaked its shiney little head over 12.41.
We'll see what happens with the candlesticks at 12.60...remember London did an about face yesterday and bid up the price the entire session. NY went along for the ride until midsession when it sold enmasse the minute London closed in 50 minutes of trading...then the smart money slowly got back in the rest of the session. As usual I'm on the edge of my seat...
I am very wary that this may be a sucker's rally. Maund is being trashed for his view of shorting gold at 615 and silver at 12.40 (by some gold bugs) but I'm gonna be ready to get back into cash just in case...
What would make silver blast through all support down to 10.50?
"Bottoms can be the most confusing. The accumulation phase, where the smart money is building positions, can be marked byreactions, crosscurrents, shakeouts and false reversals." "After the bottom is finally in place, many traders will be looking for the next break to be a buyer. After all, the market has been so weak so long that the odds favor at least one more break, right? But it never comes. The smart money won’t let it. The “smart money’s” objective (after the bottom is in place) is to move the market up to the next level; therefore, the best time to be a buyer will often feel uncomfortable. However, the train has already left the station, and at some point, you need to have the courage to hop on for the ride."
Look at all the false reversals in the chart below. The train appears to have left the station. I experienced all the emotions of the above in the last couple days trading...especially today! Todays reversal to the upside was a complete shock:
Wow. This place is a morgue. I've got some juicy chart/time comparisons. And there are great articles today analyzing what's ahead this week and through Feb-early March. We have the exact same technical setup now as we did this same period TWO years ago. In brief, we could go up to 13.25ish and then down a bit and sideways till June...then the next parabolic upleg starts. But we are in a different worl today than in 2004-5. So we need to keep a close watch on things this week. I especially want to see if Sinclair is right...I believe his time table for a breakout is Jan. 15-29. Awesome!
It's a battle between Sinclair and Maunde. Both make their cases well. Will silver break out, down, or claw sideways?
Hey - here's a chart that shows where I think Maunde got his idea of a dollar rally to 97 in 2007. He's eying a head and shoulders formation that at it's end ill sink down and test the plunge through 80 in 1992. Considering the news that China is putting copious amounts of its dollar trade surplus into the stock market (like the Saudis have done for years!) means that we could very well have that kind of a dollar rally...and stock market continuation of it's unnatural uptrend. Money talks! And there's lots of it! This makes a good case for silver to go down or sideways til June...just thinking out loud folks.