Thursday, October 25, 2012

Has the Gold Price Correction Ended? Gold Clawed Back $11.50 Closing at $1,712

Gold Price Close Today : 1712.00
Change : 11.50 or 0.68%

Silver Price Close Today : 32.049
Change : 0.454 or 1.44%

Gold Silver Ratio Today : 53.418
Change : -0.404 or -0.75%

Silver Gold Ratio Today : 0.01872
Change : 0.000140 or 0.76%

Platinum Price Close Today : 1567.10
Change : 6.90 or 0.44%

Palladium Price Close Today : 604.80
Change : 11.75 or 1.98%

S&P 500 : 1,412.97
Change : 4.22 or 0.30%

Dow In GOLD$ : $158.22
Change : $ (0.73) or -0.46%

Dow in GOLD oz : 7.654
Change : -0.035 or -0.46%

Dow in SILVER oz : 408.86
Change : -5.04 or -1.22%

Dow Industrial : 13,103.68
Change : 26.34 or 0.20%

US Dollar Index : 80.03
Change : 0.075 or 0.09%

The GOLD PRICE clawed back $11.50 to close $1,712. Toughest job in the world is calling thing by their real name -- admitting what your eyes see and your ears hear. The SILVER PRICE today regained 45.4 cents to close above 3200 at 3204.9c.

I know this soundeth sanguine, but 'tain't. They have only risen to the ruling downtrend line, and until they close ABOVE that downtrend line and confirm intentions by doing it twice, they are still obeying that downtrend line, no matter what I would like em to do.

I remind y'all, the SILVER and GOLD PRICE remain in a primary Uptrend, a BULL market. You are watching a mere normal correction in that bull market. Keep watching for that place to buy.

Today was Dead Cat Thursday, when most markets bounced no matter how moribund they might be.

All but the US dollar index, which rose a determined 7.5 basis points to elbow its way through that 80.00 resistance and close at 80.034.

US dollar is still nursing a rally, and fended off an attack today that drove it down to 79.70. It wheeled and closed above 80. Now it's time to spit or chew: dollar index has posted two tops about the same place yesterday and today. Tomorrow it must advance.

Currencies: US$1.00 = Y80.30 = E0.7732

Whoa! Just when I thought the yen had finished falling, it found a manhole cover, dragged it off, and jumped down the hole. Lost 0.64% today, gapped down, and closed at 124.54 cents. If it doesn't stop at the June low (124.12), it could plunge to 119.

Euro looked only slightly better. Range widened out and it lost 0.28% to close at $1.2934, now below the $1.2970 twenty day moving average. It's only hovering above its 200 DMA ($1.2826). One piece of really bad news would send the euro tailspinning toward $1.2600.

Stocks wound up with tiny gains after a very raggedy day. Dow gained 0.2% or 26.34 points to 13,103.68. S&P50 gained 4.22 to 1,412.97.

Not a step of this bodes well for stocks. They have broken down through the neckline of that head and shoulders that they painted earlier in the year, formed a fatal rising wedge, fell down out of that, and confirmed their love of gravity by closing below the 20 and 50 day moving averages, and if the 200 DMA was a pretty girl, the Dow'd be close enough to steal a kiss (12,972.57).

Stocks need some magic to pull out of this nosedive, and I think Swami Ben is all out of tricks. But what good is the opinion of a natural born fool from Tennessee?

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

- Franklin Sanders, The Moneychanger
10:00am-5:00pm CST, Monday-Friday

© 2012, 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 bubble has burst, primary trend down.

WARNING AND DISCLAIMER. Be advised and warned:

Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

NOR do I recommend buying gold and silver on margin or with debt.

What DO I recommend? Physical gold and silver coins and bars in your own hands.

One final warning: NEVER insert a 747 Jumbo Jet up your nose. No, I don't.