8:08 am (Hawaii) Gold breaks out. Silver holding its ground. What difference in little more than 24 hours. There were traders like me who got shaken out whether by stop-loss sell orders or plain fear. Then there are those who were long through the week come speed bump or avalanche. Also there were probably some who jumped in after yesterday's early-morning takedown and held overnight.
They were handsomely rewarded. Spot Gold is at 1536. Silver is at 37.80. All three indices are up fractionally. The US Dollar has barely above 75, hovering near its low of the day. I knew gold had a chance to have a big week, but I lacked the conviction to hold XG through yesterday. It's now at 10.65, or .17 above my sell point.
EXK opened at 10.00 and is still above 10 at 10.03. AGQ is holding ground above 200. In other words, instead of selling yesterday for a total loss of nearly $400, I would've been up right now roughly $800. That's the difference between conviction and fear from the long side. Somewhere, there's someone who is equally bearish but got spooked out and lost money from that direction.
Moving on: I hate to chase any precious metals going into a three-day weekend. The puppet masters will hammer any overseas gains. They could even turn spot prices back to previous levels, not just break-even over the weekend. But I have a hard time denying what Brother Turd wrote today: they'll likely whack any gains back to zero ... not necessarily below that. Would they actually bring margin requirement hikes to Spot Gold? Silver is establishing a base at 37.50-38.00. But it's gold that is through the roof now, with the Dollar sucking so badly and default issues in Europe. If the Chinese and Europeans buying up gold, is there really a whole lot the puppet masters can do to stop all the momentum?
I think not. But they will try. I guess I answered my own question.
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