Friday came and went and the wave pushed on upwards. Strange. Usually when our black box paranoia system flashes storm signals there is some kind of drama. Then again prediction is usually early, as Milton Friedman said, and that is why you are supposed to predict often. Of course it is just a matter of time until the prediction of a reaction proves true, and then we can smugly remark that we told you so. Meantime silver has flashed one of those speculative buy signals. There are two ways to look at this pattern (if not more) and one way is as the inter rectangluar early speculative buy signal. Note sloped trendline and break across it. The other way is the conservative wait for the almost-for-sure sure thing, that is the taking out of the recent high. The formation might be looked at as a high and a downwave, or it migjt be looked at in its entirity as a large rectangle or trading range. Regardless we’ll be buying Monday. We take this as a proxy for gold and will be buying some GLD also.