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Michael Noonan Edge Trader Plus Michael Noonan is the driving force behind Edge Trader Plus. He has been in the futures business for 30 years, functioning primarily in an individual capacity. He was the research analyst for the largest investment banker in the South, at one time, and he... More
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  • Silver And Gold - Wait On These Markets, If Bullish. Follow, Do NOT Lead. 0 comments
    Jun 24, 2012 11:10 PM

    Sunday 24 June 2012

    Normally, we start with the longer term charts to work down to the smaller time frames. This time, we will reverse the order. There appears to be cause for concern in the precious metals, of late. Not quite the Chicken Little "The Sky Is Falling!" false alarm, but certainly wonderment as to why the metals are not "taking off" to reflect the central bankers scam of "printing infinite amounts" of "money," [actually, all the fiat is being digitally created by ostensibly "unidentified" sources. Few ever ask, "Exactly WHO is authorizing this?" Most just go along with the "program," [read "scam"]. [Actually, the "reason" is cognitive dissonance, but few want to deal with reality].

    Let us keep this simple, using the KISS principle. We could say "Fast And Furious," but Eric Holder may misuse the information, somehow. EVERYBODY is looking at where silver is resting at "critical" support.
    What makes the support "critical?" Nothing!

    Why? The word "critical" is in the mind of the viewer. Is this area "critical" to hold? Only for the "hopeful."

    It will either hold, or it will not....very simply stated. HOW will it hold, IF it holds? No one knows the future as to how any market will develop. Price could collapse. Support may be broken, but not by much, and then rally. Support may not be broken. Fill in your own scenario.

    What to do? We say nothing, [unless you are buying physical gold and silver, then by all means, buy!]. Let the market do what it is going to do, and THEN follow its lead. Always remember, more money is lost trying to pick tops and bottoms. If anyone feels prescient enough to think they can outguess the market, have at it, and have your tuition money available.

    (click to enlarge)SIN D 24 Jun 12

    The weekly chart shows the obvious from a longer term perspective. Price is approaching the right hand side of a formation from which a breakout is likely to occur. The fact that the current decline is more
    labored than the preceding rally is not an impressive performance by sellers. Still, the odds for now are to continuation sideways, to possibly lower. Be odd and stay with the odds. There is no edge here.

    (click to enlarge)SIA W 24 Jun 12

    It strikes us as a bit curious that with the worry and concern from just looking at a daily chart, the monthly looks quite healthy. In fact, gold charts are holding considerably better, daily through the monthly, and the latter still looks enormously bullish.

    The decision to wait is a simple and sensible one. We reiterate that if one is a buyer of the physical metals, continue buying, almost with impunity. The "moneychangers" have a portion of their anatomy
    caught in the ringer. It is only a matter of time. History unfailingly says so.

    Otherwise, keep your powder dry. [Except for the physical]

    (click to enlarge)SIA M 24 Jun 12

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