Wow! This has sure been a crazy week. One day to go and then we can all take a couple of days off.
Sorry that this is only another brief update but it's been a long day and I have to leave shortly to go pick up my little ballerina.
First of all, here are updated POSX charts. That picture I posted last night of the dude balancing on his hands on the edge of a cliff sure seemed to be a good metaphor, didn't it? The Pig broke 76 and it fell into the abyss. For now, it looks like it should catch a few bids around 75 and that may slow the fall temporarily. However, as you can plainly see on the charts below, it sure looks like its headed back to 74.
What would stop it at 74, you ask? Just wait and see. Like magic, just when The Pig looks like it's on its death bed, the headlines will turn. The euro will sink and the dollar will rally.
Until then, the metals look to continue higher. Gold will likely begin to encounter some resistance around 1760-65 and silver will slow near 37. Having come this far, this fast, some profit-taking is to be expected. I still think, though, that gold has farther to go in this rally. Ultimately, 1840 is not out of the picture. Silver, too, looks strong. Through 37 and we'll begin to look for a short-term top somewhere between 38 and 39.
OK, gotta go. I promise you a more comprehensive update in the morning. TF
NOON EDT UPDATE:
As predicted above, the PMs are seeing some profit-taking today. Short-term traders who've made $100 in gold and $4 in silver this week are reluctant to hold over the weekend. This is perfectly natural. The metals may decline a little further into the close but I'd expect a rally on the Globex. Keep in mind that the Commitment of Traders survey numbers are released at 2:30 and those numbers are basis last Tuesday. Well, most of this rally has come post-Tuesday so I'd expect both the gold and silver reports to remain quite bullish. Therefore, let's look for silver finish the Globex session somewhere around $35 if not a little above. Gold will likely finish somewhere in the 1740s. I'll try to have more later. TF
