Silver

May Silver has opened with a bullishly impulsive thrust Sunday night, but the futures will need to do more work to set up the camouflage opportunity we require to put us on board for cheap. For further details, along with a chart that shows why this could go for extra bases, see Monday's touts.

Having opened higher on a modest gap Sunday night, the futures have yet to pull back to the 32.400 'window' line where they would presumably be recharged for a follow-through thrust of as much as 44 cents.  Camouflageurs can buy two contracts at the first signaled 'X', but you'll need to locate the trade in a time frame that would subject you to theoretical entry risk no greater than $60 per contract.  I will establish a tracking position 1) if such an opportunity has in fact occurred, and 2) someone confirms having done the trade in the chat room.  The added incentive to get long here is that you may be catching a ride on the larger uptrend begun Thursday from 31.640 and targeting 32.990.

Bulls and bears are well paired at the moment in the duel shown in this 480-minute chart, but the former will need to push past the 32.680 midpoint resistance before the futures would become a solid bet for long-side camouflage. Worst case in this time frame is a 'D' Hidden Pivot at 29.835, predicated on a decisive breach of its midpoint sibling, 31.510.

You gotta give DaBoyz credit for turning stocks around yesterday, since buyers appeared to have taken the day off. Nor was there much bullish energy as the day wore on – only the nervous drum beat of short-covering ahead of the final trading day of Q1.  It was all window dressing, to be sure, and although the Dow Industrials ended the day 20 points higher, the modest gain belied the dark magic that eventually spirited the blue chip average into positive territory.  After being down as much as 93 points early in the session, the Indoos began to inch their way higher around noon.  Of course, most of the gains came during the final hour, as is so often the case. Bears apparently had second thoughts about trusting Friday to be mellow, especially a Friday coinciding with the end of a fiscal quarter. With earnings growth apparently slowing down, will the broad averages continue to waft higher in the weeks ahead?  Perhaps. Whatever your view on the economy, keep in mind that there is no story, even weakening earnings, that cannot be spun bullishly. The optimists would interpret this as meaning companies have hit a wall on profit margins and will soon start hiring to keep up with sales. A darker view would hold that stagnant household incomes and still-falling home prices are about to smother the consumption side of growth. Yes, we too have noticed that credit card teaser rates are back down to 0.0%, sometimes with no origination fee. But the asset growth on which this seductive scam has always thrived is simply not there. ‘Time for Defense’ Meanwhile, not everyone thinks that higher stock prices are baked in the cake for Q2.  “Traders and investors should use Friday, March 30, to get defensive,” read an e-mail we

The selloff from highs achieved in the wee hours put the hourly chart in 'dueling' mode, but bulls still held an edge Tuesday night, since the rally was more impressive than the pullback that  has occurred thus far.  From here, with a prospective 'C' low at 32.480, it will take at 4.68-cent booster rally to get this vehicle off the launching pad.  Traders should look to get long on the three-minute chart (or less) if the implied entry trigger at 32.775 is hit.  That number would of course change if point 'C' doesn't survive.

The futures topped a penny above a clear Hidden Pivot target at 32.925 yesterday but stopped short of taking on an important peak at 33.090 recorded a week ago. They look feisty enough to attempt it today, but bulls will need to do a bit more, surpassing the 33.280 peak "along-the-wall" recorded on March 14, to take charge once again.

It's not hard to understand why so many people actually believe the stock market will continue to move higher indefinitely, or that the Fed will hold The Second Great Depression at bay for as long  as it takes. Just look at how a little gratuitous blather from the 'Nank stirred things up on Monday. Even gold and silver rose on loose talk concerning QE3. It's not as though, without calling it QE3, easy money were not already ratcheted up to a thousand-year high.

Touts for Monday have placed the burden of proof squarely with the bulls in gold and silver, so check 'em out if you want to know exactly what it will take.  With regard to index futures, the notion of shorting 'The' top, or even 'a' top has  succumbed to the tedium of a weeks-long failure efforts to reach an ostensibly modest Hidden Pivot target.

We shouldn't allow ourselves to be seduced by Friday's rally, since the larger downtrend had crushed a Hidden Pivot midpoint support at 31.680 with ease a day earlier (see inset).  Camouflageurs can attempt to get short near 33.385, the lower green line where a short to 30.270 was initially signaled. However, the hourly chart would swing back to bullish if buyers can push this vehicle above 32.495 today. The importance of that number is also shown in the chart.