Well the market seems to be saying that another round of QE is on the way, after those pathetic job numbers. Even the highly massaged data could not create a hint of strength, and prior months were also revised lower. Today gold and silver are much higher while most other commodities are projecting lower economic growth, which is exactly how the NFP data should be interpreted. However we also know that gold is often held back in the face of extremely bullish data, yet today it has been on a tear. I would say the Cartel has blasted through all of its ammunition at this price level and they are on a retreat until the open interest rises enough to allow another raid that will stick.

I think we are in for a fantastic week coming up for both the metals and the stocks. I am still a bit nervous as silver approaches its downtrend line around $37 and change, but silver is volatile enough that it could breakout right here and now. Even a sideways consolidation would be very constructive. Right now its bargain hunters that are driving the action, plus overseas investment from countries where inflation is running rampant and metals are seen as the haven.

I put in a bid for a few thousand shares of ECU this morning at 88 cents that will probably be filled.

cheers!

mike