Well, we're off and running in what may be the most significant week of PM trading in recent history. We've opened flat to slightly higher this evening. Since the "issues" are on the Comex, don't expect a lot of fireworks overnight or tomorrow. On balance, I'd expect that dips will be bought and rallies will be sold until Tuesday morning.



Next, here's an 8-hour gold chart. With all the hubbub over silver, many have overlooked the slow, "swiss stair" accumulation that is readily apparent on this chart. Fundamentally and technically, gold is poised to spring higher. The final hurdle looks to be a close above 1390 and then, maybe, 1395. After that, its straight back to the old highs and, from there, $1600 by 6/10/11.

And here's a reprint of a chart from Friday that you must fully consider:

Finally, silver.
There are many things I could say and an almost infinite set of possibilities for how this week may play out. Until proven otherwise, your best strategy is still to BTFD. If I were Blythe (and believe me, I am very thankful that I am not), I would have been covering some shorts on Friday. One, this helps tourniquet the bleeding but two, and most importantly, it frees up my ability to "re-short" sometime this upcoming week. The question then is...where will the EE attempt to raid?

I mentioned last week that, since August, silver has rallied and corrected 3 times. From those corrective lows, the rallies have been about 38%, 25% and 24% trough-to-peak. Applying that same math (which, as you know, I like to do), $26.50 + 25% = 33.12. It is this area, somewhere between 33 and 33.25 that I would expect Blythe to act. Don't get me wrong, she may not. She may wait. She may have even lost the ability to effectively raid. However, I still feel a raid is coming. We must be on the lookout.

In any event, as mentioned above the best strategy is still to BTFD so the next question is: What are our possible entry points? Well, here's the best I have to offer as we are in unprecedented territory:http://tfmetalsreport.blogspot.com/2011/02/wow.html

If things really get rolling, the area around 32.80 might attract some light support, too.

So there you go. Here at 7:00 pm EST, I've already got the PMs rallying at 32.75 and 1391.50.
This situation just begs for another xtranormal video of Blythe and Ruprecht strategizing for this week so maybe look for that later tonight.
Keep the faith. Buckle up. Things are only going to get more crazy. TF

ps: As we enter this extremely important week, you absolutely MUST MUST MUST take time to read this:
Thank you, Dan, for taking the time to write it!

pps: Uhhh...I would say this is pretty important. It must be for Harvey to post on a Sunday!


ppps: And this is by the request of our valued reader,http://harveyorgan.blogspot.com/http://traderdannorcini.blogspot.com/2011/02/what-is-commercial-signal-failure.html