SILVER PRICES got slugged, too, and fell to 13.77, but rebounded to close practically unchanged, and still over 1400.
All this is slow and seems to be lacking energy. Or, look at it this way. Maybe silver & gold don't lack energy, maybe the resistance is that stiff. Anyway, today shows that they ought to climb the rest of the week.
My friend BL the Supertechnician says that when you look at a chart you ought to tear off the label so you won't be influenced by anything except the chart's own appearance. Staring at the DOW IN GOLD DOLLARS, I was thinking about the trading range it's been stuck in, G$380.30 (18.39 oz) to G$393 (19.01 oz) since the last Dow high on 20 February. (Actually it did dip to G$369 (17.85 oz) on 27 February during that big stock drop. Since then it's been range bound, G$380 - G$393. But now that I look at it the DiG$ may have formed a falling wedge. Those usually break out to the upside, so we might see stocks outperform gold for a while. Still, it probably wouldn't carry past G$400 (19.35).
STOCKS had a run today; the Dow rose 108.33 to 12,720.46, and the S&P 500 rose 15.62 to 1,468.47. With the last high (20 Feb. at 12,785) only 60 points away, the Dow will probably touch that tomorrow. That will occasion a pullback. We could well see the Dow better that old high, and yet it isn't even in the race with silver & gold. Oh, stocks will be so painful later this year. Swap stocks for silver & gold.
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
"Buy Silver and Gold Coins at the Best Prices"
http://the-moneychanger.com/
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.
