"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


Monday, April 18, 2011

Silver flirting with $44

Silver has made an approach to its next resistance level near $44 which it will have to clear to set up a run towards $46. Its prior pattern has been to make an approximate $2 increase, pause, move sideways and consolidate, and then make the next leg higher as it stairsteps its way upward.

I am a bit concerned by the huge volume earlier in the session but that is only because the market has moved so far, so quickly. Also, we are beginning to see an increase in rollover activity which is going to exaggerate volume readings until we get to the first of May so that has to be taken into account as well when we look at these things.


  1. Dan,
    I think the market is really starting get concerned with Comex Delivery. Between the U of T demand for Physical and the PSLV premium to spot, there are many who smell something rotten in Denmark.

  2. Dan,

    Would you mind commenting on when you think this market will top-out (short term). As it seems we are getting into a parabolic phase as we had in 2004, 2006, 2008 etc. As you know, those tops ended pretty missy. Thoughts?

  3. I really have no idea when this market will top. One can use power downtrend lines for trading purposes (trendlines that are drawn on the very short term trend) as a sign of a short term top but that does not mean that the trend is finished. It oftentimes signified merely a pause in the prevailing uptrend which can then resume after a period of consolidation. The silver market is very extended to the upside but so far has not yet shown evidence that it is topping out. It does need to be monitored like any other market does because things change so quickly nowadays on account of the computerized trading systems.

  4. Dan--enjoy and benefit from what you do, thanks

    Is that your picture? Get rid of the gray! :-)

  5. Jake - I worked hard to get that gray hair!


Note: Only a member of this blog may post a comment.