Silver has been building a base after the manufactured sell off which began May 1st. It continues to have extremely strong support at the 32-33 level, and has had three weekly closes in a row above 35. For today, if I get a chance to buy some paper it will be at the 34 level where is is some decent support, with the strength in the dollar (or the weakness in euro) we may get to 34.
There is an excellent post by trader Dan Norcini explaining what is going on inside the Silver market right now, see his commitment of traders report. He explains how the bullion banks are now going long and that hedge funds money levels in Silver are down to extremely low levels, not seen in a couple of years when silver was trading a lot lower in price.
Most people now know what the fundamental reason are for being in precious metals but if you don't read post by TF over at along the watchtower as he explains why QE can't and won't end and what to expect in Silver in the next few days, it is actionable information.
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| dollar spiked up over 76 this morning |
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| HUI sold off and recovered quickly this morning, HUI will lead metals higher |
Bottom line is that this isn't the time to panic and sell, this isn't the time to trade out of boredom, its time to be patient. A lot of damage has been done, lots of people lost lots of money, they are wounded, and need time to heal.
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