"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat


Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput

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Tuesday, March 22, 2011

Silver attempting to push away from $36

The session is still young but the silver bulls finally appeared to have beaten back the defenders at $36 on good volume. Bears are attempting to stymie the move higher by digging in near $36.50. When the market dipped earlier and fell below $36, the selling dried up and the shorts were forced to cover.
That has emboldened the longs who are pushing and attempting to now take out the last refuge of the shorts here. A strong push through $36.50 sets the market up for a run towards $40 with initial resistance standing near $37.20 - $37.30.

If the market is going to break out it needs to hold $36 on any possible setback in price now that it has cleared that level.


10 comments:

  1. No worries. Brian Flanagan and/or Kid Dynamite will be here as soon as school gets out to deny that any problems exist in silver supply or that any shorts needed to cover.

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  2. Still would like to see Gold clear out 1430 and Oil take out 104

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  3. Is that a gap in the 34.40 - 34.50 range? Silver has this nasty habit on coming back to fill its gaps - if you subscribe to "gap theory"

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  4. Jack, you haven't read their comments properly. They're both long silver. They (and I, among others) don't believe in the break-the-Comex fairy tale that keeps being retold. Fundamentals will ultimately rule the day. Silver and gold will continue to appreciate in dollar terms, until the dollar is finally dead, and a new currency is created. The Comex default is a red herring.

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  5. I couldn't get silver Maple Leafs for a month, and then I got lucky because they got a few in and I gobbled them up at the right time. They may still not have them. Based on my direct experience there are serious silver shortages.

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  6. Silver, silver, silver. To where did gold suddenly disappear? I guess there are more gentlemen about than kings.

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  7. Silver is more speculative than gold, people see opportunities there... I certainly do. I bought physical silver when the ratio to gold was about 50 to 1, it is now a little over 39 to 1. When that ratio gets to 40 or less, I start trading some AG for AU, it's like getting a discount on gold.

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  8. With 36.50 silver, gold should be at 1825 at minimum by now, using the 50:1 ratio. It probably would be if the gold market wasn't so managed by MOPE.

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  9. The ratio of annual silver mined to gold mined is 9 to 1. That is one ratio to look for. The ratio of above ground refined gold to above ground refined silver is 1 to 5. That means available silver is 5 times as rare as gold right now. 50:1 ratio is way too high.

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  10. above 36 will not hold (for a while at least) because Blythe can willy-nilly (as she has repeatedly done) force a 50-cent to 1-dollar drop anytime, and when this happens there is usually turmoil and fear in the pits (which creates more sell-off) before the troops regroup, rally and try another half-hearted attempt to take the hill.

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