After a near-perfect gap-fill down to $19.70 this morning, the silver ETF, seen below on the daily timeframe, reversed sharply higher and is now outperforming gold and the precious miners headed into the Fed.
I have been looking for a reason to get back involved aggressively on the long side in this entire space. But the recent weak performance by silver has been a thorn in the side of upside momentum for the miners to stick, especially, even if gold has been resilient.
If silver can now regroup and resume the charge higher, I would pretty much have all I need to take a look at some levered long plays in the space, in an even more aggressive position sizing stance than before.
$19.70 remains the key piece to the puzzle, as it was the primary breakout area which must now turn into support to keep the new-bull-market case alive and well for the metals and miners.
Elsewhere, keep an eye on corn this afternoon, as bulls have a good chance to break it higher yet to follow wheat.
______________________________________________________
and maybe a happy little tree lives right over here.
LoL