Sunday, April 22, 2007

The Big Picture: Time Will Tell...

If you're looking for excitement, the Silver market is certainly the place to be. From no volatility to begin the week, to violent volatility to close the week, Silver is not for the feint of heart. But if you've got the stomach for this roller coaster, the potential for profits is huge. Patience and conviction are absolute must have tools to possess in your psychological arsenal.

Let's go to The Big Picture for a dose of fortitude.

Please click on the chart above to enlarge. (14.03 should be 14.04)

14.04 has been and remains dem Rat Bastids first line of defense since we sprung our Rat Traps at 13.03 and 13.39. With Silver's bounce off it's 50 "Day" moving average on Thursday's dip we gained a new ally in our assault on the Vermin. The 50 "Day" moving average / 13.39 / 13.03 all now individually "support" our position, and help to defend the ground we have taken back from dem Rat Bastids. Silver has now tried for two weeks in a row to crack 14.04. Thursday's dip has added some strength to our push and the weekly MACD has turned bullish for the first time in this current rally leg up in Silver. The stage has been set, and we may soon get the command to "go for throttle up". It is never a mistake to protect profits. It may be prudent at this time to protect a portion of your profits to date in this leg up with stops of your choosing below any of our lines of support.

Looking ahead as we push forward, a weekly close above 14.04 could potentially devastate the cumulative and "concentrated" short position dem Rat Bastards have devised over the years to suppress the price of Silver.

(to read more see Ted Butler's latest missive on the subject here:

The Vermin, I can assure you, will not go quietly and without a balls to the wall fight. The fray in the Silver Market we witnessed Thursday and Friday is a tiny example of the zany volatility we can expect in the future.

Now should we close above 14.04, expect dem Rat Bastids to make every last ditch effort to defend the late February high at 14.53. If you recall this was the highest "closing" price for Silver since the highs in 1980. 14.43 will be "the last chance" for the Wall Street Sewer Scum to keep a lid on the price of Silver. I suspect a breach of, and close above, 700 Gold should throw some high octane gasoline on the fire already lit under Silver and burn dem rat Bastids en masse.

In the event of an ensuing rocket ride up and thru $15 Silver, pay very close attention to the Gold to Silver Ratio ( G/S ). Remember, 45 on that ratio has repeatedly stopped Precious Metals rallies in their tracks. Time is beginning to work against us now because we are fast approaching Precious Metals "Annual Spring Top". Late May/early June have been historically unkind to Silver and Gold. I know I haven't forgotten last Spring...and neither should have you. Past performance is never a guarantee of future performance...but it's always worth bearing in mind as we project our targets and set profit goals. Though time may be short, let's not forget that between April 11, 2006 and May 12, 2006 Gold rose $137. A LOT could happen in the next 3-4 weeks.

Fibonacci projections I have done of a Silver breakout at 14.03 project to 16.80. Coincidentally, if you follow Jim Sinclair you know his next target for Gold is $761; A Gold/Silver ratio of 45 with Gold at 761 would equal Silver at 16.91. Hey, it could happen. Will it? Time will tell...

Gold closed at 692 on Friday. $1 above dem Rat Bastids line of defense at 691 spot. Gold has remained resilient in the face of all efforts by da Vermin to avoid self-destruction. A strong push by the Bulls this week could collapse all defenses of the Rat Bastid Defense Force. Their last ditch effort will be at 729 spot.

Our Rat Trap at 655.50 launched our assault on the Wall Street Sewer Scum. Smashing their defenses at 666 sent the Vermin to the hills to regroup at 691 to defend their existence at 700. Breaching 700 could be potentially devastating for dem Rat Bastids. The flood gates will have opened, and a tsunami of Gold Bricks will lay waste to their noggins. What little of the rabble is left will try and regroup to save their Family Names at spot Gold 729.

It may be prudent following a close above 700 to put in stops to protect a portion of our profits at what would now be our lines of support at 691 / 666/ 655. It is NEVER a mistake to protect profits in the event that dem Rat Bastids pull a fast one on us.

The Spring PM Window officially opened with the close of the markets on Friday The 13th...Gold 685. Add one month and $137 and you could project gold to 822. Yes, I know, it sounds far fetched. But Gold DID run $137 in 4 weeks last Spring...could it again this spring? Time will tell...
Silver Resistance: 13.95 / 14.o4 / 14.12
Silver Support: 13.88 / 13.75 / 13.67
_______________________________All prices SPOT
Gold Resistance: 693 / 699 / 714
Gold Support: 691 / 686 / 681

No comments:

Post a Comment