Monday, May 16, 2011

Gold Price has Now Drawn a Plain Line at $1,488. If it Sinks Hereunder, Will Sink More

Gold Price Close Today : 1490.40
Change : (3.00) or -0.2%

Silver Price Close Today : 34.129
Change : (0.882) or -2.5%

Gold Silver Ratio Today : 43.67
Change : 1.014 or 2.4%

Silver Gold Ratio Today : 0.02290
Change : -0.000545 or -2.3%

Platinum Price Close Today : 1761.20
Change : -3.80 or -0.2%

Palladium Price Close Today : 711.00
Change : 2.00 or 0.3%

S&P 500 : 1,329.47
Change : -8.30 or -0.6%

Dow In GOLD$ : $174.05
Change : $ (0.29) or -0.2%

Dow in GOLD oz : 8.419
Change : -0.014 or -0.2%

Dow in SILVER oz : 367.67
Change : 7.91 or 2.2%

Dow Industrial : 12,548.37
Change : -47.38 or -0.4%

US Dollar Index : 75.50
Change : -0.372 or -0.5%

While gold's action today might have seemed exciting at moments, it was all a mere tease.

The GOLD PRICE climbed off Friday's low around $1,490, failed at $1,498, but then returned for another challenge and reached $1,504 resistance, where it fainted for the rest of the day. Low hit at $1,488.85, high at $1,504.36. The GOLD PRICE has now drawn a plain line at $1,488. If it sinks hereunder, will sink more.

Just a leetle footnote to that. I allow 'tis also conceivable that the gold price is forming an equilateral triangle, with lower highs and higher lows, which might (1) break out into a continuing rally, but (2) more likely will then fail and drive to a lower low than already has been posted. Ultimately longing for $1,445 or $1,380. BICBW

Comex GOLD today perched at $1,490.40, down $3.00 from Friday.

The SILVER PRICE didn't show itself even as peppy as bedraggled gold today. Tried to rally today but was whacked on the head at 3526c. Expect to see lower prices tomorrow, especially if it breaches 3350c, today's low. Down below that last low and support appears at 3235c.

Gold/Silver Ratio rose to 43.670.

Look over your shoulder: time is passing and price is adjusting. This could last another two to 7 weeks. May be interrupted by an impressive rally before it completes its correction.

Dollar index disappointed me a little today. Over the weekend it reached 76, but fell off today all the way to 75.248. Disappointing, but not mortally damaging. This 75.20 area has been support since last Wednesday at least, so let us guess that the dollar index will rise again tomorrow. Today's break probably arose from the dollar's first shock at beating its head against 76 resistance. It rallieth still, and remaineth above the 50 DMA. Euro bounced today, up 0.65% to 1.4176. Yen frittered, closed Y80.73/$ (123.86c/Y100).

STOCKS' daily chart once again looks like a bunch of rags hanging on a clothesline and beating in the wind -- up and down, up and more down, and at day's end giving up. Dow lost 47.38 (0.38%) to 12,548.37 and S&P500 gave up 8.3% (0.2%) to close at 1,329.47. Dow is flirting more and more with the deadly 12,500. There awaits a trapdoor and chute to the bottom.

Stocks -- don't head for the poorhouse without 'em!

It's always instructive when the outward moral corruption of institutions is publicly mirrored by the inward moral corruption of their principals.

So the IMF and its head, Mr. Dominique Strauss-Kahn, French politico known at home as "The Seducer," who was for mysterious reasons political appointed head of the International Monetary Fund. The IMF is the enforcer institution of central banking which, after much moral posturing and blather about too much spending, goes in to "bail out" countries while in fact raping their economies.

Oddly enough, that's precisely what Mr. Strauss-Kahn is accused of in New York. Well, more precisely, a hotel chambermaid accused him of sexual assault resulting in charges including attempted rape, sexual abuse, forcible touching, and unlawful imprisonment. He allegedly trapped the victim in his hotel room, and so forth.

Now Mr. Strauss-Kahn, who allegedly pulled this same trick in France in 2002 but without the charges, deserves the presumption of innocence under our law. However, the New York court denied him bond, even bond of one million bucks, and one presumes he did SOMETHING to earn his nickname.

Zut alors! What did y'all expect from the Grand Poobah idols of central banking? Monasticism? Celibacy? Continence, temperance, and self-control? They RAPE countries, including the USA. Like vampires they suck the lifeblood out of nations. If that do that to nations in public view, what do you imagine they dare to do in private?

Rotten outside, rotten inside. "Power corrupts, and absolute power corrupts absolutely." Abolish central banking, demolish the buildings, sow the ground with salt.

No peace with cancer!

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

- Franklin Sanders, The Moneychanger

© 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.