Wednesday, May 9, 2007

Bargain Hunting

Fed Speak comes and goes. Again, NOTHING they "do" or "don't" say changes anything.

"The Fed said we're not going anywhere," Larry Smith, chief investment officer at Third Wave Global Investors. "They're not saying inflation is going to the moon, they're not saying it's a huge problem right now, but they're concerned that inflation won't come down to their comfort range."

Like the Fed is ever going to tell us the truth. The truth hurts, and the peeps can't handle the truth.

Though some investors were hoping the Fed would raise the possibility of a future rate cut, they weren't surprised by the committee's stance. Moreover, they were relieved to hear the Fed is not more inclined than it has been to raise rates, a move that would make access to capital more expensive and potentially hurt the stock market.

Is that meant to imply that cheap and easy money is driving the stock indexes to historical highs? Shocking!

Have you been adding to your Silver positions this week? The past two days have offered excellent buying opportunities. Silver gave an intermediate buy signal on May 3 at 13.28...Traders take note: The last time silver had a similar buy signal in March it went up $1.50 an ounce off the prior low. Tails on the candles the past two days are signs of bargain hunting. Silver has traded in a tight range between 13.14 and 13.50 for the past 10 trading days. Bouncing between the 61% and 38% Fibonacci Lines, the spring on Silver winds ever tighter for the next assault on dem Rat Bastids wall at 14.04.

Please click on the chart to enlarge.

Silver Resistance: 13.32 / 13.42 / 13.52
Silver Support: 13.27 / 13.17 / 13.10
____________________________________All prices Spot

Gold Resistance: 681 / 686 / 691
Gold Support: 679 / 676 / 672

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