OK – a bit much on the article name, I know. Catchy though?

I have a bit of snark there because my Twitter feed yesterday was crushed with negativity. I could SEE capitulation and fear, while I’m legit trying to research places to sell plasma to buy more in. While it might sound like a fool’s errand, I’m excited to see the CPI print on Friday the 10th. Last month, we had a 6.2% and I made 50% on my options in a week and pulled the plug. My expectation is this will be higher.

Just at the time when we closed over $1825 and Michael Oliver put on a cape – the COMEX pirates were ruthless in trying to serve him a dish of humble pie. However, to me, it seems they overplayed their hands. Likewise, this move has thus seemed to trigger tax loss selling part 16, in which I’m seeing some really incredible deals. I’m tapped out, and cannot partake. Right now, I have two MAJOR plays going:

  1. Short term play on metals beat down/recovery. My expectations are that recovery is past due and when it starts, it should be V in nature.
  2. Fortuna Silver Mines play. Betting on the San Jose mine getting a permit extended, OR silver price going up – in both cases, I bought in a lot of options and shares of FSM. With the price smashes even worse the last two days, I tightened the noose around my neck and bought 2,000 more shares of FSM at even cheaper prices.

One of my options plays above is in Yamana, and I saw an interesting thing when looking at the chart. a triple bottom. Or, at least very close to one.

When looking up a triple bottom, here’s what I saw…

triple-top-pattern

This is a reversal pattern – in this case, reversing a down trend. This perfectly touches the bottom line. But what does their example look like?

triple-bottom-trading

It is important to note they said this could fail if this was in a higher level downtrend. It’s not – as we are in a higher level uptrend with a lower level downtrend that looks like it COULD reverse.

What else do I see? Lots of double and triple bottoms. To me, this signals we are about to have a nice move up – OR somehow we paid off the debt, inflation went back to 1%, no one needs gold or silver, etc.

Abra – double bottom
AG – forming inverse H&S if the move up starts
Defiance – triple bottom?
GDX – double bottom?
NEM – triple bottom?
Barrick – double bottom?
PAAS – inverse H&S to form?
SILJ – inverse H&S to form?

My point in writing this is to point out that there are dangers in the metals – at all times. We CHOOSE to invest in a hedge against fiat currency. With that, those who support fiat currency may try and buck you at all times. Just 2 weeks ago, everyone was talking moonshot again, and now my feed is filled with those capitulating and confused.

I wrote my THEORY about why silver was smashed yesterday. I also believe that those predicting 1400-1500 silver might be painting worst case scenarios, but I can’t see them going that far down. IF you want to play the chart game and predict shit – I can give you the bullish case above, as well. They want to talk about cycle highs and the like, and what I’m seeing in front of me is terrible sentiment with nice chart action and a potential 6+% CPI print next week – on the back of 13 or so straight down days in silver with recovery in plain sight to square position limits.

I believe that these capitulation moves catch a bid here and we see the reversal patterns of double and triple bottoms reversing and NOT going much further. IF they break of all of this support – ALL of them – then the gold and silver bulls are BOTH in question. AS we hit $29 trillion in debt and QE to infinity goes on and on and on. At zero interest rates. With high levels of inflation. With the stock markets over valued by the most ever. As real estate is overvalued, by the most ever.

In case you missed it, gold just recently hit a double bottom.

Silver also looks to have hit strong resistance and has a double bottom as well. Though not as “clean”, the same principles apply.

I refuse to be bucked from this bull. I can see downtrends like everyone else, but I also have a much longer memory than the 2 weeks ago when all of you were cheering for $2500 gold. Down moves happen. And this one looks to not have a lot of legs left.