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The upside fireworks began one day earlier than expected, but gold and silver have nevertheless begun the next up-leg in their bull market.
I expect that the fireworks display is just beginning, but let’s watch carefully the power of the move over the next several days. It will give us an early indication of the strength that we can anticipate from the metals in this next leg, which I expect will put gold and silver before year-end over $1500 and $30.
Gold
1) Long two positions from $1352.20 bought on the Comex spot gold close on November 19, 2010. Stop-out point: sell one position at an intraday stop-out point if Comex spot gold trades at $1367.50. If stopped out, then re-buy this position if the Comex spot price the same day closes above $1372.00. Sell the other position at an intraday stop-out point if Comex spot gold trades at $1347.50. (updated 1 December 2010)
2) Long from $1383.50 bought on the London PM fix on November 30, 2010. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $1377.50. If stopped out, then re-buy this position if the Comex spot price the same day closes above $1382.00. (updated 1 December 2010)
3) Buy one position at $1382.00 or on the 1 Dec London PM fix, whichever comes first. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $1374.00. (updated 1 December 2010)
Silver
1) The position bought at $27.13 on the London silver fix on November 30, 2010 was sold on November 30, 2010 at $27.02, which was its stop-out point. Loss: 11.0¢
2) Long from $28.185 bought on the Comex silver spot close on November 30, 2010. Stop-out point: sell at an intraday stop-out point if Comex spot silver trades at $27.92. If stopped out, then re-buy if the Comex spot price the same day closes above $28.20. (updated 1 December 2010)
3) Buy one position on the 1 Dec London silver fix or at $28.20, whichever comes first. Stop-out point: sell at an intraday stop-out point if Comex spot silver trades at $27.92. (updated 1 December 2010)
4) Buy one position on the first Comex silver spot close above $29.34. I’ll set a stop-out price after this position is filled. (updated 1 December 2010) View all Trading Comments >>
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