By Eric Dubin
Remember those cartoon puzzles, “Where’s Waldo”? Finding Waldo is easier to than calling a bottom in PMs. But the set-up for a bottom to be in is here again. We’ve got follow-through upside today, which is unusual and a break with the cartel pattern of blocking follow-through upside days. We had capitulation selling over the last two weeks, culminating in the trashing during thin holiday trading last week. We’ve got the mining shares confirming today’s move in PM prices. Last night saw a big leap higher and then significant capping.
I think we’ve bottomed.
In silver in particular, obvious footprints of algo trading appeared as the price bounced off the tracing of Monday’s trading (the Kitco 72 hour charts show these footprints well; spot prices are derived from action in the futures markets and the algos frequently trade with a matching pattern to the previous day’s trade).
Many will say it’s totally futile to call bottoms in this cartel-driven world. I sympathize with that view. But what can I say? I like bashing my head against brick walls. I think we’ve bottomed. So, let’s bring on the higher prices or point me towards the nearest brick wall. By the end of the week, perhaps you’ll get to watch higher prices or my head-first bashing into yet another cartel brick wall. Either should be entertaining in a twisted sort of way.