11:04 am PST

Days like today are really exciting for me when everything starts to line up.

Silver has to keep this morning’s gap higher open with an SLV close above 16.23 for it to continue climbing higher tomorrow. If the gap remains open and we close above it, we will probably see more upside for tomorrow on silver, gold, and the mining stocks.

ABX is trading above yesterday’s block trade prints @ 15.59 and is about to break out of its consolidation. ABX is also bumping up against the broken neckline from November.

IAU is also now trading above the 5 million @ 11.29 prints from last week and has to close above it to be bullish.

The 21.70 area with the 21 sma has been containing the price movement for GDX. If it can close above it, I think GDX could have a really nice move to the upside tomorrow.

At the same time, there is an outside possibility we could see an island gap reversal to the downside tomorrow morning if the dollar starts to strengthen. We could see a hard sell off into the close, which would imply a gap down tomorrow. A trader always has to look at all possibilities. 🙂