This is a spring board now. Shorts could get rolled over here. I now believe $22.89 might have a higher likely- hood than first thought. first things, first. $21.86, then $22.00 and if those get beat with ease, 22.89 is real!
Trader chatter in the pits is for gold to test $1350 to 1358. At a minimum that is 1.5% up from here and assuming the gold:silver gain ratio of 1:2 that means silver has to move up 3%. That brings the price of silver to at least $22.29. I check from time the twitter chatter of the CNBC fast money group and none of them are on gold or silver right now. That means, LOTS, are itching for a pullback, that means heavily supported with bids.
Normally, I'd have sell orders at each of my targets (like $21.86) but I'm not doing it this time. I want to see what happens when/if it gets there..
One miscalculation I've made: With all the news chatter about JPM looking for physical gold and silver during delivery, speculators will want to invest in tangible assets. I now believe this gives the miners the edge because they own the silver. My 2 x etf has gotten good gains but today pales to what miners are getting. on a pullback I'll be into slw if the rumors of JPM and physical hoarding of silver and gold continues.
Dollar index has hit a ceiling, that looks like it will snap the price back.
type in "zero hedge why gold spiking" in google search.
Day-after-day for the last few weeks, I've read this constantly from at least a dozen non-gold analyst sources.
I know better than to trust this stuff, but the continuous barrage of the information is a bit unusual from non-gold biased sources. Lots of COT analysis also that say commercials have reduced short positions by 10's of thousands contracts, seemingly making them structural long for the first time in a decade or something going up against the large speculators.
At the end of the day I have to trust the technical's first, still waiting, floor of 21.577 is holding. My stop has moved up to 21.517.