Cinqo de Bottomo, Part II

OK, you can begin to see now how this is going to work. The final capitulation appears to have come this morning before the BLSBS report. We have since rallied over $3 in silver and are about to turn positive, taking back all of the losses since noon yesterday.

I have a last in July silver of $36.13. Above $37, the new shorts will begin to get squeezed and older (24 hours+) shorts will begin to sense that the fun is over and lock in some profits, thereby adding to the buying pressure. If we’ve indeed found a bottom, silver may, by Monday, trade back UP near $38-40.

In a traditional bottom, silver would then trade back DOWN toward $35 later next week. At that point we’d have the makings of a solid double bottom. THAT WILL OUR YOUR ENTRY POINT.

If you’re not currently long, I would advise you against buying this rally. With a potential short-term upside of $3 vs a downside of $2, its just not a tradable proposition. IF, however, the next week or so plays our as I’ve described above, the risk:reward will swing dramatically in our favor and we can act decisively then.

More later. TF

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