Silver Clears $37

*Updated

We knew (as well as advised readers) that silver breaking its 5 day cap at $35.60 this morning was significant, and there was little resistance above $36, but silver's move today has been down-right impressive.
While I've typed the above paragraph silver has just traded to and through $37, with a last of $37.03. 
With the current action, a close today above $36 appears all but a lock, with a close above $36.50 fairly likely.  This is massively bullish for silver.  Barring any extreme dissapointment tomorrow from The Bernank's Congressional testimony or the LTRO details, silver looks ready to make a run to $40.

After 3 days of capping...we have a disorderly explosion to the upside in silver. 

Gold's action today has been just as beautiful, with a classic Swiss-stair pattern clearly evident on the daily chart.





One or two more stairs and gold will be above $1800 and off the races.  Once gold clears $1800, look for a similar move (capped at the daily 2% obviously) to that silver is experiencing today.