Friday, November 21, 2008

Today Silver and Gold Blew Everybody's Ears Back - All You Could Hear Was the Whining Roar of the Silver and Gold Price Jets

Gold Price Close Today : 799.75
Change: 51.5 or 6.8%

Silver Price Close Today : 9.575
Change: 55 cents or 6.1%

Gold Silver Ratio: 83.52
Change: 0.577 or 0.7%

Dow Industrials: 8,046.26
Change: 493.97 or 6.5%

US Dollar Index Today: 87.66
Change: -0.96 or -1.1%

The US DOLLAR INDEX has about exhausted its parabolic move. Gravity looks ready to take over. It has failed three times to break through the ceiling at 88, yet again today. Other indicators are neutral or negative, and it has traced out a "bearish rising wedge." That's an up-pointing triangle that usually resolves to the downside. Let's leave it at this: I wouldn't go long dollars any time soon. Chance is you'll see the buck at 70 again before you'll see it at 95.

Despite the Walking Dead routine today, the stock market zombie will drop again. Perhaps this week it came near to a bottom, but there is a lower low coming next week.

Today silver and gold blew everybody's ears back. All you could hear was the whining roar of the silver and gold price jets.

The gold price closed on its 50 day moving average -- Wow. Investors were waiting for the gold price to cross over $750. As soon as it climbed through that window today, it shot higher. In the aftermarket it was trading at 803.70. The gold price has traced out a broadening bottom, and now confirmed the key reversal it made a week ago Thursday: higher is the next direction. First the gold price must burst through resistance around $825-$830, then $875, before it can take aim for the October high at $936.30. Today the gold price gained $51.15 [sic], if you're wondering how fast it can move when it really tries.

Y'all ain't seen nothing yet.

The silver price followed its key reversal a week ago Thursday with a swoon most of the week but closed higher for the week, clinching and confirming the key reversal. Look for much higher prices next week. Rounding bottom nearly finished.

Both silver and gold prices have confirmed bottoms, and seem to have launched a rally that will carry into next spring. Stocks will bottom next week, somewhere lower than this week, and begin a rally that will last as long as 4 months and carry to 10,000 or 11,000 -- your last chance to sell them all. US Dollar is ending its rally, which should push silver and gold prices even higher. No end in sight for the financial crisis, or the bloodsucking greed of corporate America. Expect the new congress to pass a bill sending every man, woman, and child in the country a $2 million check. Shoot, let's bail out everybody!

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at:"

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 $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down.