Thursday, February 17, 2011

The Gold Price Smashed it's $1,380 Resistance Closing at $1,384.70

Gold Price Close Today : 1384.70
Change : 10.00 or 0.7%

Silver Price Close Today : 31.572
Change : 0.942 cents or 3.1%

Gold Silver Ratio Today : 43.86
Change : -1.022 or -2.3%

Silver Gold Ratio Today : 0.02280
Change : 0.000519 or 2.3%

Platinum Price Close Today : 1846.30
Change : 17.00 or 0.9%

Palladium Price Close Today : 845.00
Change : 4.85 or 0.6%

S&P 500 : 1,340.40
Change : 4.08 or 0.3%

Dow In GOLD$ : $183.88
Change : $ (0.88) or -0.5%

Dow in GOLD oz : 8.895
Change : -0.043 or -0.5%

Dow in SILVER oz : 390.13
Change : 0.80 or 0.2%

Dow Industrial : 12,317.08
Change : 28.91 or 0.2%

US Dollar Index : 77.98
Change : -0.244 or -0.3%

The GOLD PRICE today rose $10 on Comex to close the day at $1,384.70, well past the $1,380 resistance. I'm through fighting it, which, I grasp, may mean that it has topped, but I can't fight it any longer.

GOLD has topped its 20 and 50 day moving averages (50 @ $1,370.11), the Moving Average Convergence/Divergence indicator is positive, like a snowball rolling down the Alps, Relative strength indicator isn't overbought, and it has reached a new high for the move. Some profit taking tomorrow (Friday) may take it down a notch, but it is headed higher. I bought today.

One reason I have to throw in my bearish gold towel is that silver today made a new high for the move from November 2008. Comex silver gained 94.2c to close at 3157.20. Ratio fell to 43.86.

The SILVER PRICE momentum indicators are more overbought than gold's by far, but typically silver leads the way in the late stages of a rally, where we are now. Silver is tugging gold up.

Learn thy lesson from my error. It's always dangerous to fade a bull market, because the major trend is up, which means more than half the time those who bet against it will lose. Once again I must re-learn the ancient wisdom, "The trend is your friend."

I bought SILVER today, too.

The new GOLD/SILVER RATIO low at 43.86 brings us to my first alternative target at 43.63, 2006's low. Below that lies 42 and 41, also possibilities. From this point gold might begin to gain on silver, which slows down the ratio's progress. To nail the final nail in Doubt's coffin, gold must close at a new high, above $1,422.60. Looking for upside targets leads to targets like $1,600 and 3900c, although I will still be looking over my shoulder to make sure I am not being suckered by a double top.
The white thing flying by your head is my bearish towel, which I am throwing in on silver and gold. They're headed higher.

The US DOLLAR INDEX fell today 24.4 basis points to 77.979 (down 0.31%). That's dead on the 20 day moving average, but the uptrend remains unbroken. The euro rose to 1,3607, closing above its 10 day moving average, but right on its downtrend line. That's a might-ee position: might go up, might go down. Dollar is sagging but has not broken down.

One of the great mysteries in my life, at this point greater than the mystery of a man and a maid, is stocks. But I suppose their levitation testifies to the power of printing money. Go, Ben.

Stocks are in a rising wedge. Rising wedges usually break down. The RSI is more overbought than Miami condos in 2007 -- moonstruck. If MACD goes any higher it will reach escape speed and leave the earth. Economic sense behind this? Nothing. Sawdust.

Dow today reached a new high for the move at 12,317.08, up 28.91. S&P rose 4.08 to 1,340.40. Volume is declining, which is negative, but so is everything else, so why let THAT bother you?

I don't care how much fun they're having at that party or how cheap the booze is, I'll just stay outside, thank you.

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

- Franklin Sanders, The Moneychanger
Phone: (888) 218-9226 or (931) 766-6066

© 2011, 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.