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James Turk - Rare Trading Action, Explosion Imminent
Gold is attacking $1,260 in European trading and silver is moving towards $20. In a telephone interview with King World News from Spain, Turk, being a true veteran of these markets was able to follow up last week’s comments with more compelling observations:
September 8, 2010
James Turk: “Friday’s action was confirmation that the pattern has changed. Yesterday’s action verified that as well, as the dips were bought aggressively, and there is still this strong demand for physical metal at these levels.”
“The big money recognizes that the train is leaving the station. Every dip they are in there acquiring physical metal and this also substantiates that the pattern has in fact changed.”
“There is one last thing I would like to say about this pattern and this is why I keep coming back to it. This is exactly the type of trading action you would expect to see before the big breakout.”
“So, I am still expecting that upside explosion in silver as soon as we get above $20.5 to $21.”
“The action in gold is consistent with what is happening in silver, which also confirms it will break into new high ground as well.”
“In fact, gold is already there as we had an all-time record closing high yesterday in New York.”
When asked about the rarity of this type of trading pattern Turk responded, “It is very rare to see this type of trading action, and therefore you know it’s special because it means prices are about ready to take off to the upside.”
James is continuing to note the importance of the change in the trading habits of both gold and silver. Pullbacks are proving to be short and shallow in the metals and then the markets immediately turn higher. This certainly is aggressive action and as James said, “The train is leaving the station.”
Eric King
