It seems that the market manipulators came into the market “overnight” on Tuesday night and clandestinely knocked the price of silver . . . er . . . UP!?! (Sorry, I just could not help myself).
As we have been saying, the metals have a very bullish set up, and the question is only if they will take advantage of it. So, this update is not very complex.
Silver provided us with a very strong move, and has finally taken the lead. Since silver has been lagging on the way up, we needed to see a break out through the 18.35 level to open the door to us being it the heart of the 3rd wave. Overnight tonight, silver seems to be consolidating over this break out level, and as long as it does not drop back below an 18 handle, my expectation is a continued move higher towards the 19.85 region for wave iii of (iii) of 3.
GDX and GLD are not different. As long as GDX remains over 26, I am looking for a STRONG, high volume break out through the 28 region, which will then point us to the 35-37 region next for its wave 3 as well. And, in the GLD, a strong, high volume break out over 129 points us to at least 137 for wave 3 as well, with an ideal target in the 142-145 region.
As I said over the weekend, the metals set up presents the potential for an imminent melt-up, and the market “should” be taking advantage of this in the very near term if it is indeed already in the heart of a 3rd wave off the lows. There is not much for us to do at this point in time, other than to allow the market to show us the way, and it will make it very clear very soon how the next few weeks will be proceeding.