from ed steer of casey research:

So far, this is a wonderful rally in both metals, but it is not...as I've said before...going unopposed. This rally is shaping up to be the 'same old, same old' where JPMorgan goes short against all longs. That should be obvious to anyone looking at the price capping action at, or shortly after, the London p.m. fix is in at 10:00 a.m. New York time. True, there hasn't been a lot of volume, but Ted Butler feels that the tech funds and the small traders have tacked on between 20-25,000 contracts on the long side since the last COT...so there has been deterioration. Ditto for silver.

Technically, we're close to an overbought condition as indicated by the RSI in both gold and the HUI. Could we get a short-term correction here? Sure. The action in the HUI yesterday did not impress me, and whenever I've seen that sort of counterintuitive price action before...in the shares, vis a vis the bullion...it flashes 'red alert' to me. Today's activity should tell us a lot. Note with care, the current condition in the 1-year HUI chart below...

http://caseyresearch.com/displayDrp....