SD Friday Wrap: Pressure was even applied in after-hours trading late Friday to assure gold & silver closed the week in pain…
On Wednesday it became terribly obvious that the cartel was doing everything in their power to smash silver below $17.
After tapping $17 late in the day on Wednesday, by Wednesday evening (registering for Thursday’s price action) the cartel had succeeded:
The last couple of weeks in general, and this week specifically, have been very painful to watch. Notice how silver fluctuated in a range of $.10 to either side of $17.
It’s too early to tell if we have a new higher low on the weekly:
That chart is a convergence of all sorts of ugly.
So we can attempt to gather clues from the daily chart:
The daily chart shows a sideways channel over the last year of, call it, $16.75 – $17.25.
We have seen four rallies above the range and three drops below the range. Right now, if that is indeed the range, things are not looking good for the home team.
After riding the upper end of the sideways channel, is it possible we’re now setting up come drop back down to re-test the support of the lower-bound?
We know that is what the cartel wants to do, and if we do, that will show a break-down below the 200-day moving average with a break-down of the channel taking the white metal to the support of the 50-day.
There is one problem, however:
In keeping such a tight cap on the silver price, the cartel is setting up an arbitrage play in the gold-to-silver ratio.
We’re above 78 yet again and getting extreme rather quickly.
Though gold did see it’s first pullback on the weekly:
After five straight weeks of gains the yellow metal was due for a breather.
On the daily, we can see that gold’s 50-day is turning up:
And at this point, with the cartel having effectively killed-off any and all positive sentiment coming off of the December lows, we’ll take any positive piece of data that we can.
Palladium seems to be finding whole number support:
After putting in a fresh new high this week it’s good to see palladium consolidating and riding the whole number suppoort.
Platinum is up 21 of the last 25 trading days:
Platinum is now up 16.75% since bottoming out in mid-December.
Copper is right on track with falling back down to its 50-day support:
The pullback in copper has been about as one-direction as the rally.
Crude is in a pullback of its own:
And now many analysts are pointing to the spec long positions in crude and calling for a massive pullback.
Crud oil’s 50-day moving average is nearly $59, and the 200-day moving average is above $51, so regardless of a pullback or not, we are still looking at crude oil above $50 for quite some time notwithstanding an absolute crash in price.
Speaking of crash, the dollar has staved of a break-down below 90 for now:
Yet there’s been no bounce, only consolidation between 90 and 91.
The yield on the 10-Year Treasury Note finally broke above 2.6% this week:
And while the move is indeed impressive, there are myriad factors suggesting taking a wait-and-see approach to the bond market.
When volatility is headed back down:
It’s easy to see why the S&P put in a fresh new all-time high today:
Bitcoin looks like it could roll over:
And if it does, the upper $9000’s may not be a dip-buying opportunity but a price level to put in the sell order.
– Half Dollar