Sunday, April 15, 2007

The Big Picture: Powerful Potential











Friday The 13th has come and gone. The economic data spewed forth by the illustrious number crunchers in Washington was not quite as deliciously depressing as we had hoped, but it certainly lit a fire under our PM positions. And the pressure continues building on dem Rat Bastids now as our Rat Traps squeeze [pun intended] dare little heads until dare beady little rat eyes burst under the weight of a ton of gold bricks. KaRaaaaang!


OK, fine. But let's not allow ourselves to get complacent here. Dem Rat Bastids are at their most dangerous as their backs are pressed against the wall. We haven't taken the high ground yet. And until we do we must show some respect for the nasty vermin.


We are in a potentially very powerful position as we open the week. A trailer load of economic data on tap this week. All of it with the potential to bomb the US Dollar. Retail Sales, CPI and The Treasury International Capital Report (TIC flows), and Housing starts are the big ones to keep an eye on.


Click on the charts from StockCharts.com to enlarge. This week I'll let the pictures do most of the talking. The big "event" on Friday The 13th was the breakout of The HUI Index at 360. Gold bugs have waited for, and anticipated this move for months. Historically Gold Stocks lead the metal higher, so some follow thru this week of the breakout in the HUI could prove pivotal to the intermediate future of Gold and Silver.


Should Gold surpass 691 spot, and Silver surpass 14.43, this week it may be wise to consider protecting a portion of your profits with stops below these significant milestones.



Silver Resistance: 14.04 / 14.12 / 14.30


Silver Support: 13.95 / 13.85 / 13.67

__________________________________ All Prices are SPOT


Gold Resistance: 686 / 691 / 699


Gold Support: 681 / 677 / 672


Insightful reading here:


US Dollar Perched Precariously on a Precipice


The Dollar Continues To Get Creamed …




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