Round 1 was May, Round 2 was October and it looks like December will mark round 3 of the official metals flush. I wrote when I analyzed silver last week that $30.65 was the level to watch on a closing basis to confirm the intermediate head and shoulders top. $30.00 would be the breaking point. We reached those levels today and it is now prudent to position yourselves for another down-leg. I did so yesterday in full anticipation of a boring FED statement that would essentially maintain the status quo without any indication or need for immediate quantitative easing. Suffice to say that the pattern, in my own personal view has been confirmed and should trigger the next leg down. The markets in general turned south after the FED’s announcement and gold and silver were also sold off on news that the FED won’t be printing any more money money for the time being.
