In 1994, when the New York Rangers announcer Jon Davidson screamed “Oh, baby!" as Mark Messier hoisted the Stanley Cup over his head, the feeling of euphoria running through my veins was supreme.
Since last Wednesday, when both gold and silver broke their uptrends from the December 31, 2011 bottom, we’ve been calling fugazi
(a fake breakout) on the Buzz & Banter
(subscription required). The selling didn’t last long in fact, and gold and silver promptly started their assent. Since then we have been in a major accumulation mode, with final purchases coming when gold cleared 1762 major downtrend resistance, and earlier today, silver at 34.55. Both metals are now in frenzy as these technical accomplishments are some of the biggest that can occur. A major move to the upside is likely beginning. Like over a decade ago, the words “Oh, baby” are pouring through my head. Excitement is running high.
For me, MF Global
(MFGLQ.PK) put the fire in my belly as tons of customer assets remain locked in a hapless, stinging, incompetent, and ruthless bankruptcy. I have stepped it up since last Wednesday, trying to take recovery matters back into my own hands. At this point, with positions assembled, my main goal is not to make a big mistake—better, to gamely navigate the tender job of taking off some risk in spots, but refusing to make that premature sale that goofs everything up.
For those of you who are in, and satisfied with your positions, sell them wisely, understanding that the main force is likely up.
For those on the outside looking in or wanting to embellish positions, we should see a bit of choppiness to this reasonably one-way trade perhaps as early as today. Early strength could likely be sold, and decegldnt weakness thereafter bought. As one plots risk, gold has risk to the mid 1760s though the mid 1770s is more likely and would represent a great spot to add. For silver, there is risk to 34.50, with a chance at 34.70-35.12 being more likely. As for upside targets, you could be looking back to 1900 gold and the low 40s for silver as starting points for this particular drive.
This bull run is getting later, so the moves could well increase in intensity. This is a time to assemble and hold them dear to one’s chest. Oh, baby -- this could be big.
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