Heavy Metal

Today’s a fine opportunity to bring back an old Evil Speculator tradition – of the heavy metal kind, that is:

Rammstein at its finest, baby! In case you care, ‘wohin gehst Du’ translates as ‘where are you going’ in English – a question we stainless steel rats have in our mind on an ongoing basis when it comes to assessing the tape. Now before we get to the ‘real’ heavy metals we must first visit the core catalyst of their continuous advance, which of course is the U.S. Dollar:

Remember when I told you guys to get out of ole’ bucky a few weeks back? It’s been a sea of red since – so feel free to send the Mole your (hot looking) virgins or other offerings of worship. Anyway, if you are short then I suggest you take profits near 79 – it’s been a good run.

But the chart that depresses me the most right now is the long term P&F on ole’ bucky. We are looking at quite a bit of technical damage here and the current bearish PO is near 77.4. That’s very bad news for the Mole’s European vacation plans and it seems I may have to hitch a ride with Chevy Chase.

On to the metals – a relatively light one first so to speak – copper. It’s now near my T1 target range near 4.0. I think it can push a bit higher but I would probably start taking profits here. And once again – do you remember when I drew that diagonal support line and told you guys that any touches remained great buying opportunities? How many of you rats dipped into that one? I want to hear battle stories – bring it on! 😉

And here’s the P&F for good measure. Seems on a long term basis the bullish PO is near 5.1 – wow, that’s something. I think we may get a little shake out in between but keep that in mind and even if we drop hard keep in mind that 3.5 will act as support.

On to the real heavy metals – members only please – you know how to get on the list:

Gold – of course – it just heaved itself above some rather considerable resistance and has pushed into the clear. Frankly, there’s nothing but air above and I’m thinking around 1820 for my preliminary target. If you’re not in then you may want to wait for a retest of 1700, although there’s not guarantee we’ll get it – once commodities run they run.

This is yesterday’s P&F which showed us that we were in the process of testing long term diagonal resistance. And of course today we pushed above it and that means we are now officially in the clear.

Very same setup on the silver side – almost identical. Target range near 39 – that would be rather superb if we can get it.

Again, this is yesterday’s P&F chart and we have already overcome that diagonal resistance line – very very bullish.

That’s it for now – equities continue to look a bit iffy and unless we see a decent correction I have very little interest in taking on either short or long positions.