When we started writing this letter on the weekend we thought GLD and SLV were about to go parabolic.  Today’s action forestalls that for the moment, but it does not forestall the necessity of being long these markets, and for our part we have added on.  In general we have high respect for our readers who are smarter than your average bear.  Some will find a later Basing Point than the one we have marked here, in April and they will be right.

Why do we like the March low?  Because the gold market habitually comes looking for stops too tight to the market and wipes out trend positions just for fun.  It is not unusual for us to be two Basing Points back, strictly interpreted, as opposed to the latest technical point.

For trading we might be on an hourly chart at this time.  And would certainly be if we thought the market was going parabolic.

Similar comments for silver:

Basing Point and stop better illustrated here — situation similar to GLD.