Thursday, June 23, 2011

Sometime Very Soon Will Come the Day to Buy, Buy, Buy.

Gold Price Close Today : 1520.10
Change : (32.80) or -2.1%

Silver Price Close Today : 35.002
Change : (1.737) or -4.7%

Gold Silver Ratio Today : 43.43
Change : 1.161 or 2.7%

Silver Gold Ratio Today : 0.02303
Change : -0.000632 or -2.7%

Platinum Price Close Today : 1701.00
Change : -50.50 or -2.9%

Palladium Price Close Today : 747.55
Change : -20.95 or -2.7%

S&P 500 : 1,283.50
Change : -3.64 or -0.3%

Dow In GOLD$ : $163.87
Change : $ 2.68 or 1.7%

Dow in GOLD oz : 7.927
Change : 0.130 or 1.7%

Dow in SILVER oz : 344.27
Change : 14.65 or 4.4%

Dow Industrial : 12,050.00
Change : -59.67 or -0.5%

US Dollar Index : 75.32
Change : 0.537 or 0.7%

Was everybody holding his breath expecting the Bernancubus to announce QE3? Looks that way, because when he didn't the market pulled the plug on silver and gold.

GOLD fared all right in Europe, holding above $1,540, but the US market opened shelling gold and never stopped. From $1,538 gold lost twenty bucks in a few short steps, about 10 minutes of trading. Rest of the day was spent trading sideways between a low of $1,512.95 and $1,522.50. Comex closed down $32.80 at $1,520.10.

Critical support lies at $1,515, and the 50 DMA at $1,518. When gold falls through $1,515, probably tomorrow since lots of folks won't want to go home long gold over the weekend, it will fall toward $1,490. Yes, there is a chance the GOLD PRICE will catch and hold here, but it looks more like the break I have been expecting. Sometime very soon will come the day to buy, buy, buy.

The SILVER PRICE shaved off a huge 173.7c today to close at 3500.2c on the Comex. The day was not kind to silver after New York opened. From the open it fell through 3600c like falling through an open trap door, but not as fast as gold fell. Bottom came at 11:00 am. At 3465.6c, so silver recovered significantly (35c) by Comex close.

Today dragged the SILVER PRICE below its 20 DMA and touched the last low (3473c). Once it breaches 3400c no significant support appears before 3200c. 200 DMA, a likely target, stands at 3129c today.

Y'all know what we're looking for? For the whole world to turn against silver! For all those TV cheerleaders and gurus who were shouting "Go silver!" at 4800c to tell us now that silver's bull market has ended. They are doing you the favor of scaring buyers away, and if they weren't so knuckleheaded, you ought to thank them. Stay alert here, buying time draweth nigh.

What you saw today was "management" as the Nice Government Men managed to bring the Dow up from 235 points below yesterday to only 59.67 below yesterday, at 12,050. S&P500 closed down 3.64 at 1,283.50

Seems that as the market cogitated on Ben Bernancubus' statements yesterday, it finally dawned on them that he had not announced Quantitative Easing 3. (Set aside for the nonce the fact that he did announce he would keep interest rates low, and he can only do that by printing more money. Stop acting so logical.) Therefore, since the easy money driving stocks up was ending (so they thought), they'd better shuck stocks, and shuck they did. Stocks dropped overnight from 12,109 yesterday to 11,875.

Lucky, lucky stock market! Friends appeared, with pockets as deep as the Bureau of Printing, and they bought and they bought and they bought until they had lifted stocks almost to 12,000, but then stocks fell back again and so they bought some more and at last raised stocks above 12,000, even if it took a little obvious last minute buying.

On 31 May stocks shot up to 12,574, then next day fell below 12,300, whence ensued an erosion that carried stocks to the bosom of 11,862.53.

The past three days stocks have traced out a near identical formation, which makes one wonder if they might not be preparing to lose ANOTHER 500 points. Alternative explanation is that stocks yesterday made a double bottom with that 11,862 and will advance from here. How plausible that appears in the face of the Bernancubus making the market go cold turkey from inflation heroin, you tell me.

Yet for objectivity's sake and because I don't want to be caught dead "talking my position" I note that the Dow in Gold Dollars rose today over its 20 DMA, so stocks might be turning up against gold. Might.

US DOLLAR INDEX today slapped its critics by climbing 53.7 basis points to 75.320. Entire downmove (so far) hath amounted to no more than revisiting the 20 DMA. Dollar is definitely headed higher, unless it closes tomorrow below 75.

The euro's bleeding at its stitches, and gapped down today like a 3 inch bolt dropping off a skyscraper. Closed 1.4256, down 0.68%, and no gainsaying its downtrend. Look for the 200 DMA (1.3828 now) as a first target. Japanese yen closed down, too, at 124.14c/Y100 (Y80.55/$), below 20 DMA.

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.