I’m starting to feel like it’s Thanksgiving around here – not Easter. By the way, Happy Easter to all and have a great weekend!
The move in the metals and the dollar has quite honestly surprised me. Heck, it was only last weekend when it looked as though corrections were in place and the hurt was on. But as they say, from failed moves come fast moves.
The plan was – and still is – to ride this C wave no matter how hard the bears try to throw us around. But it’s looking as if the momentum trade could really be getting going now.
Last night around 12:30 AM CST we broke the 74.24 pivot on the US dollar, which was the 2009 low in the dollar and we continue below that this morning. Won’t surprise me if we dance around it now for a few days, but the ultimate goal is 70-71 by mid June. At this pace we’ll be there rather quickly.
Without any retracement of any real proportion now, gold and silver can be considered in a runaway move. This means that we can expect continued strength and any sell-offs in gold would not exceed 25-35 points. The noise out there is ripe with “experts” calling for a top, but they continue to be early and wrong.
Many are pointing to the weakness in miners. But it is here where I think the best opportunities still exist. SLW sits right at the 50-day DMA and if the metals truly are in a runaway, this setup will act as a springboard…..
Can it fake us out? Sure. It’s kinda been doing that already. But again – from failed moves come fast moves. And SLW is one of the best companies in the world with key advantages in the gold and silver industry.
So game on. This is press time and we’ll continue to have exit plans in place in case something changes. But this is the time to push, to stay in the game and to be watchful for the parabolic move(s) that will define the top in gold and silver.
Stay thirsty my friends, and play the extremes always!