Thursday, January 21, 2010

For Silver and Gold Prices, Today or Tomorrow is the Must Hold Day

Gold Price Close Today : 1102.70
Change: -9.60 or -0.9%

Silver Price Close Today : 17.496
Change: -37.0 cents or -2.1%

Platinum Price Close Today: 1592.50
Change: -32.40 or -2.0%

Palladium Price Close Today: 451.00
Change: -18.00 or -3.8%

Gold Silver Ratio Today: 63.03
Change: 0.768 or 1.2%

Dow Industrial: 10,389.88
Change: -213.27 or -2.0%

US Dollar Index: 78.42
Change: 0.08 or 0.1%

The GOLD PRICE lost $9.60 to close on Comex at $1,102.70, but in the aftermarket has shed another $9.50 to trade at $1,093.20. Today's trading brings the gold price back to its uptrend line stretching back to the Nov. 2008 lows. You have to buy it here, even if you think it may drop further. Below this lies support at old low of $1,085/1,075 then at lateral support of $1,065, then at the apex of gold's last triangle, $970. I reckon that uptrend line will hold, but I wouldn't swing over hell using that for a rope.

Oh, poor silver! Dropped 37 cents today to close on Comex at $17.496, then dropped another 11 c to $17.385 now. The SILVER PRICE has also reached the uptrend line from the Nov. 2008 low. For both silver and gold prices, today or tomorrow is the must hold day, the crisis. Otherwise they will go considerably lower, say, $16.00 for silver, although that last low at $16.80 will have some say, too.

Time to buy will come soon -- maybe today. Watch closely, gird up your loins, be brave.

How exactly do all those folks who believe that the dollar determines the course of metals and stocks explain today? The US Dollar Index rose a gigantic 8 basis point (0.1%) while the Dow fell a huge 213.27 points or 2.01%. Maybe the dollar's rise contributed the 0.01%, but where did the 2% come from? No, stocks peaked on 19 January and unless they best that high at 10,725 they will fall much, much lower, headed for the last low near 6450. It's a big market, so slow to turn, but in two days the Dow has crashed through 10,600 and 10,500 support and approaching 10,250 below which lieth only atmosphere. Today Dow closed down 213.27 at 10,389.88 and the S&P500 at 1,116.48, down 21.56.

US DOLLAR INDEX has reached its 200 day moving average (78.72) and turned back. Apparently didn't like what it saw. High today at 78.814, but closed at 78.418 (that was tricky to type), so it closed about 40 bps off its high. Yet the dollar is still rallying, even if it takes a day or two to digest these gains. 200 DMA could have been the target, but too early to say and not very likely.

Y'all! The entire world is degenerating! I simply cannot comprehend that grown people cannot give directions to the place they work everyday. How do they get there in the morning? And hardly anybody will give you a decided YES or NO, about anything. They all waffle and shuffle and call you back later and check with somebody. And people waiting on you in offices or anywhere act as if either they or you are barely human, and barely escaping a coma.

So let's start a conspiracy of competence & joy! Yes, tomorrow, let's every one of us throw a monkey wrench into the works by doing our jobs competently and intelligently! Wake up out of your coma, dig in and decide that today of all days, you are going to delight in the work before you. More than that, you are going to gaze at that person across the counter and say to yourself, "God has created this unique person and sent him to me to serve today! Even if it were Nancy Pelosi or Glenn Beck, I'm going to find something to like and respect about him."

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

- Franklin Sanders, The Moneychanger

© 2009, The Moneychanger. May not be republished in any form, including electronically, without our express permission.

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. Whenever I write "Stay out of stocks" readers inevitably ask, "Do you mean precious metals mining stocks, too?" No, I don't.