There will be, I believe, some help for Wall Street from the White House in the next 60 days. That ought to shake the present USD strength, and start the precious metals rally. If you see another extreme sell-off in silver, don't hesitate: jump in and tell yourself, as you do it, that this is a three year commitment. If you prefer the silver producers, these are weighed down by rising costs, so the royalty company SLW is probably best. I'd write puts and buy calls and go long the stock at the extreme sell-off.

Absolute cycle bottom numbers are often set during a flood of margin calls. In the commodities, like the precious metals and energy, this stage is usually linked to the failure of hedge funds and the broker-dealers that administrate them.

Today’s US Jobs Report is likely to show another significant retraction of non-farm employment and a lift in the unemployment rate. Politically speaking, this situation is unacceptable to the Republican Party which is embroiled in a 60-day fight for retention of control of the white House. Hence my time frame expectation that the Administration will make a panic move to help.

Yesterday, PIMCO’s Bill Gross was pleading for help from the Administration. However you paint this picture, color it yellow. Bill Gross represents Wall Street, so this is another case of Humungous Bank & Broker pleading for Intervention, a tilt in that so-called level playing field that would help HB&B.

Every time that tilt happens, the $USD sinks. Presently, the $USD has been on a powerfully bullish run, which has been tanking the commodity prices. The Administration has been touting the positive impact that is having on the US economy; yet the data does not confirm that. Traders have been selling off the Energy, Financial, and Tech sectors because they now clearly see that the US economic problem is a global problem. As other currencies have dropped, the $USD has lifted. But there is a limit to how far traders are prepared to push it higher, knowing that US banks, broker-dealers, insurance companies and hedge funds are likely to fail soon.

As Bill Gross mouthed his plea in the direction of Washington, he was signaling “Get set for tilt”. Yes, we are that much closer to a bottom in precious metals. As I see it, traders with a three-year time horizon can buy Gold with a 7-handle and Silver with a 12-handle and do well over that period.

Day traders and swing traders of the stocks will be waiting for the next flood of margin calls and resultant sell-off in the goldminer stocks. That could happen on Monday and Tuesday. We’ll have to wait and see.