Submitted by SD Contributor FW:
Friday may be a good day to look for an opportunity to Stack the Smack.
I’d put odds that we’ll have a silver correction Friday at 70%. Mining equities were somewhat signaling correction during Thursday’s trade. The RSI blasted almost to 80. Gold was capped by the cartel today at the typical 1% up rule, which shows the scumbags are lurking around and active. The daily trend leveled and we should look to see if there’s weakness in the overnight session in advance of the COMEX open. Inflation trade commodities other than PMs sold off today and we may have an improvement in weather coming, which will temporarily take the heat off the ag sector.
The 200 DMA in the very near-term doesn’t mean much, and in fact the cartel has often attacked when technical milestones are reached just to piss people off and to attempt to squash technically positive signals. This is all the more likely this time around given all the other factors I noted above.
So, the guy that told you very early this month that this bull move was imminent is now underscoring the risk of a small correction. Odds are, this will be totally insignificant when looking at a one month chart 30 days from now. I think the uptrend will resume sometime next week and by Friday, August 31st, we’ll see silver close the week well into the low $30s, and with what I said earlier this week is still on target for next week.
If the cartel manages to shave more than a buck off the price on an intraday basis and we move below $29.50, that $29.50 area should act like a magnet and suck the price back up to around that level an hour or so after a possible spike down attack (picking that number based on the 72 hour bot technical analysis theory I’ve been developing that I talked about earlier this week). There would even be a chance we’d manage to close above $30 anyway, post attack.
Moral of the story? Be prepared to STACK THE SMACK on a cartel raid Friday!