Friday, November 19, 2010

The Gold Price Reacted Strongly Rising From $1,346.60 to $1,358 New Resistance Is Now $1,360

Gold Price Close Today : 1352.90
Change : (16.10) or 1.2%

Silver Price Close Today : 26.830
Change : (1.323) cents or 5.2%

Gold Silver Ratio Today : 50.42
Change : -1.984 or -3.8%

Silver Gold Ratio Today : 0.01983
Change : 0.000751 or 3.9%

Platinum Price Close Today : 1666.90
Change : 27.20 or 1.7%

Palladium Price Close Today : 696.40
Change : 36.65 or 5.6%

S&P 500 : 1,196.69
Change : 18.10 or 1.5%

Dow In GOLD$ : $170.85
Change : $ 0.64 or 0.4%

Dow in GOLD oz : 8.265
Change : 0.031 or 0.4%

Dow in SILVER oz : 416.74
Change : 6.26 or 1.5%

Dow Industrial : 11,181.23
Change : 173.35 or 1.6%

US Dollar Index : 78.61
Change : -0.479 or -0.6%

The GOLD PRICE reacted strongly rising from a 10:30 low at 1346.60 to a $1,358 high. After 11:30 it backed off, oscillating between $1,350 and $1,355. Comex closed up $16.10 at $1,352.90.

New resistance is now $1,355, call it $1,360. GOLD must kick down that fence and run for $1,375. That's by no means a sure thing. Tuesday through today paints a chart that made a rounding bottom at $1,330, but that can only be proven by gold rising again tomorrow. Gold might touch back to $1,345 or even $1,335 for a final "kiss good-bye", but would have to close higher at day's end.

By the way, have y'all noticed that these mixed-close days with silver & gold usually resolve in higher prices? Not always, but most of the time.

No sooner had I said that SILVER must clear 2600c to confirm that it had bounced off its 20 DMA & reversed than it did. Overnight it beat that mark.

Rounding bottoms appear on a chart as a bowl. You notice that the bowl has an upper rim. Whenever the market breaks above that rim, it confirms that the rounding bottom genuinely was one.

The SILVER PRICE did all that today. It eased off from 2660c before the market opened to 2603 at the low, but bounced off that support and leapt to 2703c just before noon. On Comex it closed at 1:30 Eastern time up 132.3c at 2683c. I still want more confirmation: silver must close above 2700c tomorrow.

These markets are terrifying, & tough to play. I just have to follow the rules and buy today, although that leaves me as nervous as a banker in church. Gold weighs on my mind most. It has not yet closed above its 20 DMA. Why not?

Bull markets always climb a wall of worry.

I really regretted making that comment yesterday about Demo-----s, not because they don't deserve it, but because it might have left the monstrous misapprehension that I approve of Repub----s. I don't. Some of us remember that they are the party that came down here 149 years ago burning, robbing, killing, and raping, and so don't expect much from them today. Ahh, but nowadays everybody is respectable so they rob you with a fountain pen, a bank, and a legislature rather than a six gun, then brag on what a splendid favour they've done you. Tell you the truth, I have no stomach for either pencil-necked, lily-handed bunch of them. I could spend the rest of the evening writing up all the things wrong with them, but there's no point in that. It would only take me away from doing things that are right & can really build a future for all of us. So I am dropping that nasty topic, confessing that I picked up the wrong end of that stick. Sorry.

Well might I lament the bewilderment of yesterday's market with its self-gainsaying closes! Today that bore even more baffling fruit.

General Motors, who ain't got nothing right in the last 30 years or so, comes out of government bail-out bankruptcy today with an Initial Public Offering (well, "initial" since the government took them over) & the stock rose 5.7%? Certes, the world contains even more morons than I suspected, many more among stock investors! What wondrous transmogrification hath changed GM into a company that can make a profit? Nothing I can see, 'cept that GM is the "flavour of the day" at the Wall St. Ice Cream Shoppe.

Then there's Ireland, which at last reluctantly seems to be willing to accept 8 gazillion Euros to bail out the government so that the government can bail out the Irish banks, or something akin to that. Canny Irish politicians say, "No, no, we won't take the money!" Tragic sigh. "Well, if you insist!

Set aside the theatrics & think. The Eurocrats announce they & the IMF (stands for International Monetary Fund) will bail out Ireland & its banks, which they can only compass by printing several Coliseums full of new Euros, depreciating the currency. How reacteth the market? The Euro, soon to be gutted per this announcement, rises & the dollar falls? Yes, rises along with gold, stocks, & silver

Nuts. This is even crazier than buying General Motors stock.

In a not quite symmetrical interplay, the US DOLLAR INDEX fell 47.9 basis points (0.62%) to 78.605 while the euro rose from 1.3525 yesterday to 1.3631 today, up a US penny or 0.33%

Before you throw the buck overboard, stop & ponder. Dollar index hath support from 78.40 (low today, 78.427) to 78.70, & that's precisely where it stopped today. Support did not give, & the dollar had already begun correcting yesterday. Present market looks like a bunch of drunks throwing dice. Sure, the dollar might have hit its 50 day moving average a couple of days ago & thus fulfilled a correction of its downward plunge. Then again, maybe not. Rising from below its 50 DMA, all the Euro got out of this was a rise up to the 50 DMA. Yeah, yeah, maybe the Euro turned up and the dollar down, and maybe not. Let's see how it plays out. For my money I'm not calling the buck out of the game before it crosses its 20 DMA (77.52 now) at least. Maybe the market today was buying the rumour (a deal with Ireland almost done) and will sell the news (deal is signed).

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

- Franklin Sanders, The Moneychanger

© 2010, 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 or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.