Tuesday, July 10, 2007

Tomorrow Should Carry Gold to 667 - The First Barrier Gold Must Cross to Begin Proving a New Uptrend.

The SILVER PRICE closed the day smack on its downtrend line, looking like it will break thru tomorrow. My guess is that 1300, only 14 cents away, will see silver whiz by. By the way, not closing higher tomorrow would be very bad juju for silver.

The GOLD PRICE continued to climb today, stopping on its 17 DMA. Tomorrow should carry it to 667, which remains the first barrier gold must cross to begin proving a new uptrend.

Yes, yes, I would begin wetting my toe by buying some silver & gold here.

Yesterday I wrote, "Stocks have climbed to the decisive point, the last high at 13,672.32 (4 June). At this roughly 13,700 level they will prove their direction for a long time. Either they will fail and break down, or break out upside by piercing 13,700." Today the market spoke, & only one word: "Down!" Stocks obeyed immediately. The Dow fell 148 points, below its 20 day moving average. That's the coal mine canary for stocks. When they fall thru that 20 DMA, 'tis first indication of a trend change. Just below us, at 13,449, lies the 50 DMA, next canary in the coal mine. At 13,250 lies a trap door. Once the Dow steps thru that, it falls to the bottom of the shaft.

And look at that Dow in Gold Dollars! Dropped from the top of the range down to the bottom, G$421.29 20.380 oz). Still, we've seen this before. The DiG$ needs to fall through G$415 (20.076 oz) to confirm that it has broken down and resumed its downward flight toward its ultimate goal at G$41.34 (2.000 oz).

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.