Tuesday, August 30, 2011

Prophesifantastical?



11:40 am (Hawaii) Here we go. Brother Turd is not, in any way shape or form, guaranteeing this. But he sees a possible spike higher in gold and silver. In silver, a break over 42 should be a winner. In gold (see his stunning "reverse pennants"), a run overnight could spark a return to $1,900/oz and beyond.

I've never traded based on any person's forecast, but nobody grasps space and time in the near term like Brother Turd. Nobody. Between the puppetry of the CME mafia and various wafflers chattering on TV about the demise of metals, Turd Ferguson cuts through and reads the price action without peer.

I am still inclined toward scaling into AGQ and/or DGP here despite today's gain; DGP dipped to 60 just a few sessions ago. But the after hours spread is wide. AGQ 222.50/bid 222.43/ask 222.89, DGP 68.13/bid 68.11/ask 68.42.

Update 12:29 pm Couldn't help noticing that silver/AGQ has been taken down almost regularly the past week between 11 am and noon Eastern time. A somewhat similar price action exists in gold/DGP, just less drastic. Of course, as I notice this, the pattern/trend is probably done with. If it continues, then buying the dip at lunch time and selling the rip late morning may earn a few shekels. To buy more physical.

Why not just buy more physical now? I noted a few times recently that AGQ ran from 220 to 380 when spot silver went from 40 to (nearly) 50. A 74% gain versus a 25% gain. The math is simple, though new factors are present, like the tempered speculation in this post-5-margin-hikes era. Maybe AGQ tops out at 300. That's still a 37% gain. On balance, more fiat to buy more physical ... unless somehow the physical market surges. Can you see that happening with central banks and ordinary, fellow peons like me grabbing up hard metal? I can. For now I'm leaning toward a scale-in of paper silver and/or gold.

AGQ simply eaten alive between 11 am and noon lately


The lunchtime takedown isn't as severe in gold/DGP



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