Tuesday, December 31, 2013

The action in gold and silver is getting kind of crazy.

Volume has picked up in the highly leveraged USLV ETF.  Also, suddenly huge blocks of recent data are missing from the chart.  I find that these "glitches" always seem to favor the house.  When they provide the most clarity, that is the time you need it the least.  When they provide the least clarity (like getting rid of the M3 data, changing the way CPI is calculated, changing the way unemployment is calculated) then those are the times to be extra aware of what sleight of hand the con men are up to.  I've been asking for capitulation volume on the metals.  The chart has not indicated for sure that the bottom is in but other indicators like volume and like crappy stocks getting play suggest that the bottom in metals cannot be far off.  As usual, those with a dollar cost averaging strategy will end up winners here.  Dollar cost averaging into something of real value like physical metals is how a king and a rook can always checkmate the evil, lone, rogue king.

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