Friday, March 30, 2007

If Gold Holds 655 & Silver 1309,Then 667 &1340 Resistance Will Be Pierced

Talk about an equivocal week -- market speak with forked tongue. Look at those prices. Every market stands on almost the same spot where it stood last week.

SILVER & GOLD are both talking out of both sides of their mouths. As long as gold holds above yesterday's low at 655 and silver holds above 1309 (notwithstanding a quick spike beneath & immediate recovery), we're okay. We might see that spike early next week. If so, both metals should then pierce the 667 & 1340 resistance that has so long stymied them.

That US DOLLAR INDEX looked to be forming a platform from which it might climb, but today fell face-plant fast on the platform. Any lower and it continues down to 80.50. On the other hand, if Monday it wakes up, then 'twill have begun a rally. Needs to climb over 84.25 to prove it, though, and not fall through 82.90.

What about STOCKS? I can smell confusion when the Dow closes up a few points and the S&P500 down a few. Factually, the Dow has been locked in a downtrend since 27 February: lower lows & lower highs. Fact. It needs to clear 12,500 to confirm a trend change upward. Whether it rallies further or not, stock investors have overstayed their welcome. The bear is hungry, and eager to eat your money. Swap stocks for silver & gold.

I am intrigued to note that the DOW IN GOLD DOLLARS sank this week, and has moved away from its 200 day moving average, preparatory to dropping like a holstein cow pushed out of a C-147 cargo plane.

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.