Interesting -- the US Dollar fell today, too. The Nice Government Men let it drop clean to 80, now they need to get busy rehabilitating the buck. The dollar could still drop below 80, until it proves a rally with a close above 82.35.
The debacle in today's stock market was so terrible that the Nice Government Men trotted out Treasury Secretary Paulson to fire their main weapon, the Blarney Cannon. He solmenly intoned that sub prime issues "would be largely contained." Yes, O, Yes. Right. Ha. Ha. HAHAHAHAHAHA!
Nobody said how bad this drop was. At the low the Dow was down 449 points (3.3%), & the S&P 500 dropped waaaay under 1,500 to close at 1,486. I can't remember exactly, but this is one of the worst single day drops since the 1998 LTCM crisis. Something very bad is happening behind the curtains, subprime mortgage securities-wise.
Technically stocks will be in big trouble when the Dow breaks 13,250. Bear in mind that when markets rise fast, they also fall fast.
The Dow in Gold Dollars broke G$415 on Tuesday, ran back to G$423 yesterday, & today closed at G$420.41 (20.337 oz). The suspense is over. Stocks' back has broken, & they will drop against gold for a long, long time. Only a close above G$436 (21.091 oz)would contradict that.
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.
