For sure techincals can be a useful tool, the only problem with techincals is the chart painters are very good at hwat they do after years of homing their skills and they have a large pack that runs with them when convenient/profitable. For sure Chinese New Year was an opportunity this week along with G7/G20 meeting and State of the Union and for sure JPM has it's eye on silver options expiry for the march contract which for silver is a delivery month. Bottom line is the enemy has exploited it's opportunity which has cost them metal but not as much as usual because lots of far east buyers have been away from their desks.

I expect this will resolve in the next few days and swing back in the favour of gold/silver longs. I still think Sinclair will be correct about the next month and this hammering may be setting it up to happen. It's my view that the FED wouldn't be printing such huge amounts of paper unless they felt they had too and that they know much more about the underlying economic conditions that they are stating or revealing while sitting on pins & needles hoping for the best. The currency wars are an ongoing event as made clear by Rickards and these things never last a short period of time, think years not hours/days/weeks like the momentum traders. This will end badly as it is impossible to unwind in an orderly fashion what the central banks of the world have done and continue to do but the timing is not tomorrow and they can do this much longer than most think or believe but there will be measuring points along the way like the $1900 print on gold in Aug 2011 and $49 print on silver in spring of 2011, etc. And for sure the FED and other central banks will fight for their fiat as will most governments and gold/silver is a direct threat.

It seems to me that we are seeing the reaction of cornered rats lately and they can be very aggressive and dangerous so I remain long this market.