Wednesday, September 26, 2007

The Gold Price Correction May be Completed, If Not Buy Gold Around 710 - 712

Nothing stands still forever; markets moved today.

The GOLD PRICE support at 726 held today, as it did on Friday & Monday, although it dropped to 722 today. Odd -- what's that figure coming out on the three day chart? Is that a reverse head-and-shoulders? If so, yesterday's drop to 722 completed gold's little correction, readying it to burst through 737-738 resistance.

If, on the other hand, gold should drop, buy like a maniac with a charge card around 710 - 712.

The SILVER PRICE has a harder row to hoe than gold. 1365 - 1350 form the ceiling to break, and there is support from 1335 all the way to 1320. That reverse H&S appears on the silver chart, too. If so, it will cross thru 1365 on its way to 1500 by Thursday.

Mmmmmmmm. . . Been thinking about that GOLD/SILVER ratio. Have about concluded that 57.159 on 21 August was not only the top, but also confirmed the price lows in silver (1146.50 on 16 August with 1148.90 on 21 August) and the price lows in gold, too. We're not going to see the ratio move any higher. If you still want to trade gold for silver, better do it quickly. Next target is under 35.

The US Dollar index hit a new low today at 78.21, close enough to the 1991 low (78.19) to call the same. Ahh, but it also closed higher, the first half of a key reversal (must also close higher tomorrow). Will the dollar keep on falling, or turn & rally? Call me crazy, but I think that's about enough falling for now & a rally will begin tomorrow - or soon, anyway.

STOCKS beat their way through 13,800 today to close at 13,878, up 100 points. This might be a double top forming (with 14,000) or it might be a new leg up beginning. But why do the recent days trace out something that looks so much like an island reversal, although technically its not? No way to tell until Dow closes above 14,000, or falls below 12,838. No matter -- I would still 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"

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.