Silver

[Gcubed]

My take on the next couple of days is that the Fed and the ECB are going to act in unison. The ECB is going to implement a corporate bond buying program which is something they have the legal right to do and would not require them to go to the individual governments for approval. They will buy corporate bonds off of the banks - which will help to rid the banks of many of their toxic assets and give them room to begin lending to small to mid-size companies. I got this tidbit from the Hilsenrath article today in the WSJ.

Bernanke is going to implement a bond buying program whereby the Fed buys government securities off of the ECB. This is something that the Fed has the legal ability to do.

The net effect is that the ECB will be able to provide substantial relief to the Eurozone without devaluing their currency because the proceeds they receive from the Fed will be used to buy the corporate debt from their banks.

Of course this would be detrimental to the value of the dollar, but, that is desired anyways. The markets would react positively to this both here in the US as well as in Europe.

The rationale for this would be that Bernanke would say that it was imperative to help Europe out because if the Euro fails - the US would be hurt significantly. There might even be reference made to the Marshall Plan part 2.

The only loser in all of this is Germany which would experience pressure on their exports because of the rising Euro as a result of all this.

Why tomorrow? Because no one is expecting it. Everyone seems to be of a consensus that further easing wont happen until next month or even next year. Europe doesnt have time to wait...

You sincerely believe that Bernanke would "walk off of the plank" in order to possibly stop this slow motion Euro train wreck? WHY? Can't they just print their own money?

[bemac]

You sincerely believe that Bernanke would "walk off of the plank" in order to possibly stop this slow motion Euro train wreck? WHY? Can't they just print their own money?

Off the plank and into the helicopter.

[Strawboss]

You sincerely believe that Bernanke would "walk off of the plank" in order to possibly stop this slow motion Euro train wreck? WHY? Can't they just print their own money?

Good question. First, a comment from Bernanke in his famous helicopter speech...

The Fed can inject money into the economy in still other ways. For example, the Fed has the authority to buy foreign government debt, as well as domestic government debt. Potentially, this class of assets offers huge scope for Fed operations, as the quantity of foreign assets eligible for purchase by the Fed is several times the stock of U.S. government debt.

Ok - so that addresses the ability of the Fed to buy foreign debt.

Bernanke knows that if Greece leaves the Euro, things could start to get a bit disorderly. If Spanish yields spike - or worse, if Spain leaves the Euro - its game over. The 50 year Euro experiment would suddenly and immediately end. That would cause immediate and existential threats to the existing global monetary system.

It is apparent that Europe isnt capable of responding to the crisis in a coordinated and timely manner. Too many parties are involved in the decision making process - and all it takes is a single party to thwart any initiative. Germany has dug in their heels and isnt going to budge.

That practical reality leaves only 2 choices for the Fed. They can do nothing and continue to "monitor the situation" and only act in response to whatever happens. The problem with this approach is that if Greece goes - or if Spain goes - the horse will have left the barn and there is no way to go back and fix the damage.

The only other option would be to act pre-emptively, along the lines of what I suggested initially and which Bernanke addresses in his speech as being a viable policy option that the Fed has the legal authority to implement.

Draghi can talk all he wants about "whatever it takes" but, we all know that in practical terms - there isnt much he can do on his own without the consent of Germany.

Ultimately, what Europe needs is time to allow the political process to work with the end result being an integrated monetary union. But, because of the way events have unfolded - time is a commodity that is in very short supply. There are questions as to whether Greece and Spain would even make it until the next Fed meeting in September.

Bottom line. The Fed has the legal authority to buy foreign government debt. The ECB has the legal authority to buy corporate debt. My thesis incorporates the 2 in a coordinated fashion.

[Gcubed]

I'll ask again, authority or not, WHY?
2nd why, Can't they print their own money?
3rd why, Why should we print if they can print their own?

[Strawboss]

I'll ask again, authority or not, WHY?
2nd why, Can't they print their own money?
3rd why, Why should we print if they can print their own?

In Bernanke's eyes - the Euro crisis is the biggest threat the US faces. By saving them, he is saving us.
The ECB cant buy individual government bonds - its explicitly prohibited. They can buy corporate bonds - but, not government bonds.
Why should we print? For the same reason we do currency swaps in the trillions of dollars. Because it needs to be done in order to kick the can a bit further down the road.

[Gcubed]

In Bernanke's eyes - the Euro crisis is the biggest threat the US faces. By saving them, he is saving us.
The ECB cant buy individual government bonds - its explicitly prohibited. They can buy corporate bonds - but, not government bonds.
Why should we print? For the same reason we do currency swaps in the trillions of dollars. Because it needs to be done in order to kick the can a bit further down the road.

We shall see. I'm betting our Fed doesn't act on this at present.

[Strawboss]

We shall see. I'm betting our Fed doesn't act on this at present.

You are probably right. Bernanke will probably want to put off using the heavy artillery as long as he can, but, I think everyone knows its ultimately inevitable - i.e. monetization. The million dollar question is when...

I have some options in place in case he prints tomorrow and have a larger than normal amount of cash ready to deploy if prices dip and printing is delayed.

[fat panther]

My take on the next couple of days is that the Fed and the ECB are going to act in unison. The ECB is going to implement a corporate bond buying program which is something they have the legal right to do and would not require them to go to the individual governments for approval. They will buy corporate bonds off of the banks - which will help to rid the banks of many of their toxic assets and give them room to begin lending to small to mid-size companies. I got this tidbit from the Hilsenrath article today in the WSJ.

Bernanke is going to implement a bond buying program whereby the Fed buys government securities off of the ECB. This is something that the Fed has the legal ability to do.

The net effect is that the ECB will be able to provide substantial relief to the Eurozone without devaluing their currency because the proceeds they receive from the Fed will be used to buy the corporate debt from their banks.

Of course this would be detrimental to the value of the dollar, but, that is desired anyways. The markets would react positively to this both here in the US as well as in Europe.

The rationale for this would be that Bernanke would say that it was imperative to help Europe out because if the Euro fails - the US would be hurt significantly. There might even be reference made to the Marshall Plan part 2.

The only loser in all of this is Germany which would experience pressure on their exports because of the rising Euro as a result of all this.

Why tomorrow? Because no one is expecting it. Everyone seems to be of a consensus that further easing wont happen until next month or even next year. Europe doesnt have time to wait...

Soooo, you think the US (bernanke) will backstop Europe?, or am I missing something?

[Gcubed]

You are probably right. Bernanke will probably want to put off using the heavy artillery as long as he can, but, I think everyone knows its ultimately inevitable - i.e. monetization. The million dollar question is when...

I have some options in place in case he prints tomorrow and have a larger than normal amount of cash ready to deploy if prices dip and printing is delayed.

Break out yer Shekels Kid. Watch that GSR too.

[lightcycler]

I'll ask again, authority or not, WHY?
2nd why, Can't they print their own money?
3rd why, Why should we print if they can print their own?

Only the US Petro Dollar reserve currency has that ability to print at will. We will lose that ability at some point but for the moment its still there. The full faith and credit of the US Guberment allows for that confidence. Silly yes but reality at this point. Where is the breaking point where that ends? Can't be too far down the line.

[Strawboss]

Some silver charts for Saturday morning...

[southfork]

Break out yer Shekels Kid. Watch that GSR too.

OMG is this a bullish metals post cube??

[Au-myn]

StrawBoss,

In reference to your P & F analysis, I agree with you that support is $26 on both charts.

The buy signal at $28.5 is also correct. The second at $30 however, is not valid because the X at $29.5 is part of a #1 Double Bottom formation sell signal.

[Strawboss]

Here is a monthly chart for the US dollar. We are at very solid resistance. It would take a MAJOR event of some sort in order for the dollar to overcome this resistance - in my opinion.

Considering the fiscal cliff is rapidly approaching and the political rhetoric will be heating up once we get past Labor day, debt ceiling discussions to commence in the near future, etc... I just dont see a fundamental case for dollar strength strong enough to push up and through this resistance.

[fat panther]

Here is a monthly chart for the US dollar. We are at very solid resistance. It would take a MAJOR event of some sort in order for the dollar to overcome this resistance - in my opinion.

Considering the fiscal cliff is rapidly approaching and the political rhetoric will be heating up once we get past Labor day, debt ceiling discussions to commence in the near future, etc... I just dont see a fundamental case for dollar strength strong enough to push up and through this resistance.

Sorry, off topic. Who uses what for shorting the USD, leveraged ?ETFs? Curious. Thanks.

[Strawboss]

Sorry, off topic. Who uses what for shorting the USD, leveraged ?ETFs? Curious. Thanks.

AGQ works pretty good (slightly kidding as the correlation is lower than you would think it would be).

A true play would be UDN - but, it has very low volume. Another play would be to go long the Euro which you can do with FXE - much better volume.

If you want leverage - I would suggest gold, silver, miners, leveraged PM ETFs, options, etc... all of which should do well if the dollar declines.

[fat panther]

AGQ works pretty good (slightly kidding as the correlation is lower than you would think it would be).

A true play would be UDN - but, it has very low volume. Another play would be to go long the Euro which you can do with FXE - much better volume.

If you want leverage - I would suggest gold, silver, miners, leveraged PM ETFs, options, etc... all of which should do well if the dollar declines.

Yea, correlation. My thoughts exactly.

UDN, ditto, and I've gotten a real education on the leveraged ETFs. Look good, feels good,I'm making correct decisions, but my account balance is out of whack....tastes bad.

I should have stayed in the neighborhood I play best in. Bullion, (leveraged PM ETFs). Options, I suck at (timing)

Thanks for the reality check, and all my best.

[Weatherman]

Barron's likes silver (sort of), but it is touting Fresnillo as the best way to "invest".

Caveat Emptor, Silver Buyers

Coins are for collectors. Investors interested in silver should look to the miners. But these days, those miners require a much closer look.

Silver prices have been flat for most of 2012. Prices typically rise when inflation is expected, as it was back in February when silver prices skyrocketed in anticipation of a new Federal Reserve monetary-easing plan. (Prices subsequently crashed when it didn't materialize, and have been flat since.) If the Fed announces a third round of quantitative easing at its next meeting Sept. 12-13, though, silver should receive a major boost.

But finding a pure-play silver miner isn't that easy, and finding one worth investing in is even harder.

Just 30% of the global supply of silver comes from companies that specialize in silver mining. The other 70% is a byproduct of digging up other metals where silver deposits are also often found, such as zinc, lead, copper, and gold.

Primary silver producers have a natural edge on the market: As prices rise, they can increase production and gain market share. Their competitors won't increase supply unless demand for their primary metals rises as well.

"I would expect [silver equities] to perform, at minimum, in line with the metal, and potentially outperform the metal if it's a sustained rally," said Andrew Kaip, an analyst with BMO Capital Markets.

But investors should tread carefully, as some marquee names in silver have been tarnished by some management missteps.

The world's second-largest primary silver producer by volume, Pan American Silver (ticker: PAAS), has seen its share price beaten down 28% so far this year, in part because of its purchase of Argentina's Navidad mine. Pan American acquired Navidad in 2010, hoping to negotiate a permit for open-pit mining, which is banned in the region. So far, no such accord has been reached.

Pan American stock should be trading at about $21 a share, of which Navidad would contribute around $5 a share, according to Dahlman Rose analyst Adam Graf. Instead, the stock closed at $15.80 on Friday.

Meanwhile, Coeur d'Alene Mines (CDE), the largest primary silver producer in the U.S. and third-largest globally, has suffered from management mistakes.

In August 2011, the company missed the deadline for paying its annual fees for mining claims at and near the Rochester property in Nevada. The rights were snapped up by another mining company, Rye Patch Gold (RPMGF). "It's bookkeeping," said John Bridges, analyst at JPMorgan Chase. "These things do happen. It's very embarrassing and probably expensive." A court will hear the matter in November. Coeur stock is down 17% so far this year, closing at $19.95 a share.

The Rolls-Royce of the silver space is London-listed Fresnillo (FRES.U.K.), the world's largest producer of silver. The company's cash-cost for digging silver out of the ground is around $5 a troy ounce. While Fresnillo's $5 excavation cost doesn't include companywide expenses like capital spent on replacing output, the company still makes enough to pay a dividend yield of nearly 4%, well above its peers. The stock closed Friday at $1,581 a share, off 0.75% on the year.

"In the absence of any mistakes by management," Kaip said, Fresnillo will continue to benefit from "good execution, asset quality and growth."

http://online.barrons.com/article/SB...mod=SmartMoney

[fat panther]

Barron's likes silver (sort of), but it is touting Fresnillo as the best way to "invest".



http://online.barrons.com/article/SB...mod=SmartMoney

As usual, I'm confused.

USD(?) $1581? FNLPF - Grey Sheet? USD quote $24.67. I admit I've never heard of this miner and can't find info other that what I posted here.

Thanks for any info/help.:vollkommenauf.

[southfork]

As usual, I'm confused.

USD(?) $1581? FNLPF - Grey Sheet? USD quote $24.67. I admit I've never heard of this miner and can't find info other that what I posted here.

Thanks for any info/help.:vollkommenauf.

here is the companies web site

http://www.fresnilloplc.com/investors.aspx

[Strawboss]

Did you know that the Fed tracks the volatility in silver? I didnt know that. They track some other stuff too, like gold, gold miners, Apple, Google, IBM, etc... I suppose they consider the 19 different things they track to be important... hmmmmm

Silver is at very low levels of volatility currently according to this chart (which makes sense since we have been sitting here for weeks basically doing nothing...).


Source: http://research.stlouisfed.org/fred2...VCLS?cid=32425

The ascending triangle is getting pretty crowded as price continues to get squeezed tighter and tighter.



Here is a zoomed in view of the same chart which better shows the ascending triangle.



Dont forget that position limits take effect Sept 10, 2012 - which includes the grandfather clause:

In response to comments, the Commissions are including a grandfather provision in the final rules, which provides that a transaction entered into on or before the effective date of the Product Definitions will be considered insurance and not fall within the swap and security-based swap definitions, provided that, at the time it was entered into, the transaction was provided in accordance with the Provider Test.

What does it all mean?

Who knows...what I do know though is that silver has already corrected about 50% from its peak and the correction in 2008 was a bit above 60% so unless they intend to push silver down more than they did during the financial collapse - its at or pretty close to the bottom currently. At least thats how I am playing it.

[Au-myn]

Here is an updated P & F chart on silver. Reference a prior chart and analysis (post #1739) on this thread that is updated on this post. I was discussing the buy signal at 28.5.

This formation is complex as we have a Triple Top formation that originally had four tops. The buy signal at 28.5 did not occur as of yet however, this formation is inside a much larger formation - a Spread Triple Top, again with four tops (lightly shaded in blue). We also have a Formations in Combination (Bullish Signal & Triple Top formation) within the Spread Triple Top at the end of this large formation. So, as you can see, we await the buy signal at 28.5.

Note that this Spread TT has cut through the LT bearish resistance line and the buy signal at 28.5 will turn the chart bullish. For any TA's that use P & F take a look at Spread Triple Top patterns in your books, study the example charts and identify the patterns inside the Spread TT as some of these formations contain several small formations inside.

[Strawboss]

For anyone interested, here is a link to download the definitive guide to point and figure charting by jeremy du plessis. This book is required reading for anyone that wants to be a Chartered Market Technician.

http://www.4shared.com/office/5qZfCe...to_point_.html

[Strawboss]

Ok - lets check my math. Because its a spread triple top pattern, we would use the horizontal count to calculate a price objective. There are 11 columns in the formation which we would multiply by the box size (.25) and then multiple that by the reversal (3) and then add the result (8.25) to the bottom of the formation (26.25) which gives a price objective of $34.50. Is my calculation correct?

Here is an updated P & F chart on silver. Reference a prior chart and analysis (post #1739) on this thread that is updated on this post. I was discussing the buy signal at 28.5.

This formation is complex as we have a Triple Top formation that originally had four tops. The buy signal at 28.5 did not occur as of yet however, this formation is inside a much larger formation - a Spread Triple Top, again with four tops (lightly shaded in blue). We also have a Formations in Combination (Bullish Signal & Triple Top formation) within the Spread Triple Top at the end of this large formation. So, as you can see, we await the buy signal at 28.5.

Note that this Spread TT has cut through the LT bearish resistance line and the buy signal at 28.5 will turn the chart bullish. For any TA's that use P & F take a look at Spread Triple Top patterns in your books, study the example charts and identify the patterns inside the Spread TT as some of these formations contain several small formations inside.

[andial]

One would think Silver checks out that 28.50 area next week.

[Strawboss]

One would think Silver checks out that 28.50 area next week.

It would definitely provide a nice entry with a very favorable risk:reward ratio. The stop would be at $27.25. Thats better than a 4:1 ratio.

[Au-myn]

Ok - lets check my math. Because its a spread triple top pattern, we would use the horizontal count to calculate a price objective. There are 11 columns in the formation which we would multiply by the box size (.25) and then multiple that by the reversal (3) and then add the result (8.25) to the bottom of the formation (26.25) which gives a price objective of $34.50. Is my calculation correct?

I counted 12 columns, StrawBoss. My price objective is 35.25. BTW, you can still calculate a vertical PO after the buy signal is completed with a snap back of a column of three O's.

[Au-myn]

One would think Silver checks out that 28.50 area next week.

That is what I am looking forward to, andial. Then the "rocket" takes off.

[Strawboss]

The ideal situation is that silver goes to about $29 and then has a correction (minimum of .75 but potentially more) taking it back into the formation which then reverses which would generate a 2nd buy signal at $29.25 (if $29 was the previous high). That would create the juice needed to thrust through $30 as well as provide an even higher price objective.

[StateofJefferson]

Silver has been flat the first 17 days of August (up .08 cents). Meanwhile the Silver stocks are telling a different story.

Endeavor Silver +4%

First Majestic +8%

Fortuna Silver +13%

Silver Wheaton +16%

This is quite a divergence over a short period of time. I think there is smart money moving into the producers in anticipation of a move up in the price of Silver.

[Strawboss]

Here is a 5 x 3 P&F for the Gold:Silver ratio. We have a failed triple top breakout followed by a triple bottom breakout and a bearish catapult forming. If the ratio hits 56.5 - target is 47.5. For those that arent familiar - a falling GSR is almost always synonomous with a rising silver price (silver outperforms gold).

[Strawboss]

Conventional wisdom is that the stocks ALWAYS lead the metals.

Silver has been flat the first 17 days of August (up .08 cents). Meanwhile the Silver stocks are telling a different story.

Endeavor Silver +4%

First Majestic +8%

Fortuna Silver +13%

Silver Wheaton +16%

This is quite a divergence over a short period of time. I think there is smart money moving into the producers in anticipation of a move up in the price of Silver.

[Strawboss]

All that is needed...

Just one Billionaire to place an order on the COMEX for Silver and POOF...it's all over!

Seriously, this is true, just a single $1 Billion order would basically wipe out ALL deliverable Silver held at the COMEX. Not only that, if a huge order came through (which is discouraged by position limits on the long side), much of the supposed "deliverable" Silver would change categories or even evaporate prior to being delivered.

Think about how small $1 Billion is. It is equal to roughly a mere 8 hours time of which our government borrows 24/7. It is like going to bed and getting a good 8 hours of sleep...wake up and we borrowed another $1 Billion. Only in this case, once this market gets broken and trust me, $1 Billion will do it, we will go to sleep, wake up, and no Silver will be available.

Years ago, Warren "Gold ain't money, it's barbaric" Buffett held 129 million ounces of Silver (equal to nearly $4 Billion at today's price). It was speculated at the time when he sold it that he had his arm twisted to do so, maybe, maybe not. There are now no hordes of this size available, ANYWHERE and the "threshold" to breaking this market goes down every single day.

Have you ever wondered what will happen when this market does get broken? You might at first think "who cares?" but that would be shortsighted because any action in Silver will surely spill over into the Gold arena and Gold exploding higher is definitely not a "confidence" builder, on the contrary, fear is THE greatest financial emotion of them all.

Putting the Gold market aside, what really will happen when the COMEX Silver pit gets broken and cannot make delivery?

Obviously, the price of Silver will rise. It will rise because the shorts will get scared and buy, the specs will get greedy and buy BUT, the real catapult will be sellers, or lack there of! When sellers, whether they be paper or physical get a whiff of this, they will pull their offers and create an upside air pocket where anyone who wants in...will have to do so at much higher prices. The physical sellers will probably go into TOTAL hibernation for a long spell where they will not accept any amount of fiat paper until they can "trust" what it is that they are getting in return of sale.

A busted Silver market will spill over into everything. This one "little white lie" will expose many and far larger lies up to and including the fact that the entire system is a Ponzi scheme. It is really this simple, Silver CANNOT be allowed to be "outed" because it will expose everything else so don't hold your breath for a miraculous CFTC ruling, failure to deliver WILL be the catalyst



This is all basic stuff but it is important to understand just how little money is now necessary to detonate the global financial system. It could be a Chinese or Russian billionaire, it could be a Carlos Slim or someone else that has mining investments, it could be a coalition or whatever. It WILL be done for the simple reason that it CAN be done, and it can now be done with very little money and very little effort. The U.S.S.A. has made many many enemies over the years. Stupid it is to have left exposed such an obvious and easily attacked Achilles heal to the entire system.

If a foreign sovereign government were to enter the Silver market?

$1 Billion? $5 Billion?

Are you kidding me?

http://www.lemetropolecafe.com

[Au-myn]

Here is a 5 x 3 P&F for the Gold:Silver ratio. We have a failed triple top breakout followed by a triple bottom breakout and a bearish catapult forming. If the ratio hits 56.5 - target is 47.5. For those that arent familiar - a falling GSR is almost always synonomous with a rising silver price (silver outperforms gold).

Let me help you out here, StrawBoss.

The first formation is a Bull Trap. To qualify as a Bearish Catapult formation the pullback cannot exceed a previous top. A dip to 565 would be a #1 Double Bottom sell signal.

[Strawboss]

Which means the ratio cannot rise to 59 without invalidating the potential bearish catapult, right?

Let me help you out here, StrawBoss.

The first formation is a Bull Trap. To qualify as a Bearish Catapult formation the pullback cannot exceed a previous top. A dip to 565 would be a #1 Double Bottom sell signal.

[Weatherman]

A busted Silver market will spill over into everything. This one "little white lie" will expose many and far larger lies up to and including the fact that the entire system is a Ponzi scheme. It is really this simple, Silver CANNOT be allowed to be "outed" because it will expose everything else so don't hold your breath for a miraculous CFTC ruling, failure to deliver WILL be the catalyst

I see this as the key to understanding the reason why the U.S. government (by using banksters as its agents) is actively manipulating the silver market. It isn't about the profits that the manipulation makes by stealing from the gamblers who bet on momentum. I think the real reason is that there is not enough silver to meet all the demands for it. Since silver is essential for manufacturing and for national defense, the government agenda is to suppress the demand from investors and speculators by punishing them with vicious declines when prices get pushed uncomfortable high, and by trying to hold the price down below those energetic levels that invite more buying. The key to breaking that manipulation is accumulation of physical silver. After the level of available physical silver bullion drops sufficiently that it becomes a potential problem for consumption by industry and national defense, then government will stop the manipulation by price suppression and control silver the old fashioned way - by rationing it to the favored few. The cost to the rest of us to buy a little of the remaining amount of physical silver still available then could be prohibitively high, so buy your physical silver now while government suppression keeps the price at bargain basement levels.

[Au-myn]

Which means the ratio cannot rise to 59 without invalidating the potential bearish catapult, right?

The top cannot exceed 590. When it hit 595 there was no probability of a Bearish Catapult formation. Look up both formations in a P & F book and review them so you fully understand how they form.

[Strawboss]

Silver has broken through $28.50. That is SIGNIFICANT!

[southfork]

Silver has broken through $28.50. That is SIGNIFICANT!

Quick, post some rockets.

[Strawboss]

If I am right, not even rockets are going to stop what silver is going to do...

The ideal situation in my mind is for price to rise to about $29ish, and then to have a quick correction of between 3-5%. P&F says that the 1st correction in a new trend is to be ignored. What I am looking for is to see how strong the buying is on this next dip in price. My analysis leads me to believe that the buying power we are going to witness is going to be a thing of beauty.

Quick, post some rockets.

[Au-myn]

As Jackie Gleason said "And away we go" !!

[Au-myn]

If I am right, not even rockets are going to stop what silver is going to do...

The ideal situation in my mind is for price to rise to about $29ish, and then to have a quick correction of between 3-5%. P&F says that the 1st correction in a new trend is to be ignored. What I am looking for is to see how strong the buying is on this next dip in price. My analysis leads me to believe that the buying power we are going to witness is going to be a thing of beauty.

I am not expecting a quick correction as the .5x3 scale chart issued a #2 Double Top (market bottom) buy signal. That pattern usually has a strong up move rather than a series of higher tops and bottoms. JMO.

[Strawboss]

I am enjoying being your student. Cool stuff.

Assuming you are correct, that means that people that want to board the silver train need to do so NOW.

I am not expecting a quick correction as the .5x3 scale chart issued a #2 Double Top (market bottom) buy signal. That pattern usually has a strong up move rather than a series of higher tops and bottoms. JMO.

[southfork]

she is making a run for 29, no holding us down soon, 30 will be a thing of the past. Im loving those 28.00 jm bars I got from Gainesville in July.

[Strawboss]

$28.83 is the 100dma. Once we get a close above that ,the momentum traders are going to start showing up. Per Trader Dan.

[bemac]

$28.83 is the 100dma. Once we get a close above that ,the momentum traders are going to start showing up. Per Trader Dan.

It's been hovering around that price since you posted it.

[andial]

Nice day, and I was only hoping for a close above 28.50 sometime later this week. Sometimes you do get more than what you wish for.

[Strawboss]

Dont tell the guys over on the GSR trading thread, but, we got confirmation today of the ending of the uptrend in the ratio and the beginning of a new primary downtrend. If my math is right, the target is 47.5. My understanding of P&F trends is that targets tend to get exceeded (except for the last move in a trend before it changes direction). If so, that would imply a target of lower than what is calculated.

I have also drawn in some 45 degree lines which in P&F sometimes can be support/resistance as well as some areas where you would expect to have some horizontal resistance. I learned that from the PDF I linked to a few posts back (definitely worth reading/studing IMO).

[andial]

Dont tell the guys over on the GSR trading thread,

Strike that and reverse it. The first thing I did was make a post on the GSR thread, just a little math equation. With more to come.

[fat panther]

Do I need to, or should I, know what the GSR trading thread is?

Thanks, I think?