Oooooo. The US DOLLAR INDEX rose to 85.03 today, then closed lower. Y'all know what that means, huh? First half of a key reversal, 'tho I don't know if you could rightly call it a key reversal when it occurs in the progress of a downtrend. Anyhow, whenever anything breaks to a new high for the move, then fails, it's bad juju. You can hear the war tom-toms beating in the background.
STOCKS, you will remember, left me suspicious yesterday with a double close. Turns out my doubts may have been justified, as the Dow sank slightly today. Look for more fun on the downside in the next couple of days. Whoops! Wear your rubber boots, as there's likely to be quite a bit of blood flowing. May return for one last gasp, but maybe not.
I have two charts I'd like for y'all to see. One is the Gold-Silver Glory Box that compares gold & silver to 5 different stock indices since 1999. The other is the Dow in Gold Dollars since 1996. They say a picture is worth a thousand words, but the only words these two pictures speak are, "Swap stocks for silver & gold."DOW IN GOLD DOLLARS closed today at a new low for the move, G$397.13 (19.21 oz), headed for the 200 DMA around G$388.
(Charts coming soon.)
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
"Buy Silver and Gold Coins at the Best Prices"
To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $1,250.00; silver's primary is up targeting 16:1 gold/silver ratio or $78.13; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down.