Be Cautious

I am, once again, flat in silver. I bought 2 May 47s this morning at 35 and sold them an hour later at 70. I still have my June 1550s in gold but I’m about to sell them, too, if we get to 1515.

You have to admit that this is playing out almost exactly as planned. We’ve plummeted once. I’m sure that move was enough to shake out a lot quite a few of the fresh silver longs. I highly doubt that that is it. There will be another down leg. Options expire tomorrow and you’ve got this weird Fed news conference scheduled for Wednesday. That’s more than enough ammo for The Cartel to give the silver tree a really good shake.

Nothing has changed, however. I will be looking to buy July silver calls at $45.50 and, as The Witch said over the weekend, we may even see $45. I’ll be buying there, too.

Here are four charts with some guidance. I’ll be out of pocket for most of the afternoon so, from here, you’re on your own. I’ll try to check in later, probably not until at least 6:00 pm EDT. TF

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