Monday, November 19, 2012

The Silver and Gold Price Broke Loose Buy Silver and Gold and Wait No More

Gold Price Close Today : 1734.00
Change : 19.70 or 1.15%

Silver Price Close Today : 33.181
Change : 0.820 or 2.53%

Gold Silver Ratio Today : 52.259
Change : -0.715 or -1.35%

Silver Gold Ratio Today : 0.01914
Change : 0.000258 or 1.37%

Platinum Price Close Today : 1581.00
Change : 3.00 or 0.19%

Palladium Price Close Today : 644.60
Change : 4.00 or 0.62%

S&P 500 : 1,386.89
Change : 27.01 or 1.99%

Dow In GOLD$ : $152.55
Change : $ 0.77 or 0.51%

Dow in GOLD oz : 7.379
Change : 0.037 or 0.51%

Dow in SILVER oz : 385.64
Change : -3.35 or -0.86%

Dow Industrial : 12,795.96
Change : 207.85 or 1.65%

US Dollar Index : 80.85
Change : -0.235 or -0.29%

The silver and GOLD PRICE confirmed their intentions loud enough today to be heard in Washington, DC, Brussels, and Tokyo. Gold vaulted $19.70 today, clearing all that resistance between $1,714 and $1,730 in one high jump. Silver smashed 3300c resistance by hopping 82 cents to 3318.1.

About the only further confirmation wanting is gold's close above $1,740, which might come tomorrow.

The GOLD PRICE made a textbook impulsive climb off that Friday low at $1,705.79. Today it never fell lower than $1,720.94, and closed only 75 cents off the $1,734.75 high.

Support now becomes $1,730 (mustn't close below there, maybe $1,725 in a push), and old support/ resistance at $1,740 becomes the next hurdle.

Gold closed today only $9.50 off its 50 day moving average at $1,743.50, and is above its 20 Dma (1,714.57). Momentum indicators show plenty of room to climb. The Tall Hurdle comes at $1,800, where gold twice failed in September and October. This time it will smash through $1,800 like Stonewall Jackson rolling up yankee general Hooker's flank at Chancellorsville.

The SILVER PRICE outran gold today, 2.53% to 1.15%. Silver closed nearly on its high (3320c), and barely shy of its 50 day moving average (3325c). A bigger hurdle than today's lies ahead at 3350c, but once silver clear that it will send the shorts and croakers flying for cover.

Up above silver must overcome those 3544 tops left in September and October, and above that the stronger resistance at 3750c.

Every new rally, like every new life, is a chancy undertaking, but this one is as strong as most you'll ever witness.

They're loose! Buy silver and gold and wait no more.

I've given up trying to make any sense at all out of the news. Their conclusions leap tall reason at a single bound, and come down in a swamp of conjecture.

Today they reported that the US dollar dropped on "hopes that US leaders will reach a budget deal." Let's see: if the government goes over the fiscal cliff then taxes will rise and spending will shrink, which by my feeble Tennessee natural born fool reasoning means the yankee government might take some tee- tiny baby steps toward solvency. On the other hand, this implies the dollar would strengthen on news that the government will spend more and tax less and the Fed will be forced to print more to keep the whole leaky tub floating.

Whoa, wait a minute. This report comes from USA Today, America's Comic Book Newspaper. Never mind. Only a fool would expect those goofs to make sense.

Look at it this way: in the land of the brainless, the man with two brain cells is king.

Fact is, the US dollar index fell 0.3% to 80.85 today. Technically, this changes nothing. Dollar remains in an uptrend, remains above its 200 day moving average (80.71), it only takes it down to the channel's bottom boundary. Close below 80.50 would turn the dollar down.

Momentum indicators (RSI and MACD) do look a mite brown around the edges, but not enough to threaten an immediate reversal.

Dollar weakness helped the yen not at all. Ended unchanged at 122.93 cents/Y100. Clearly the Japanese Nice Government Men have decided to pull the plug on the yen in the vain hope of curing their economic woes. This will work as well as using spit to glue iron plates instead of welding them.

Euro rose 0.56% today to $1.2814, trying to touch its 200 DMA (now 128.21). All the moving averages are converging, so something ought to happen, up or down. People whose judgment I respect seem to expect a higher euro, but I can't picture it. I just mention it to show how uncertain markets are, and that reasonable men can read the same facts and differ. Or maybe I'm biased.

In the end it makes no difference at all, as I would not buy euros with y'all's money, let alone my own. Long term demise of the euro is write too large in the stars and the numbers.

I've been warning y'all that stocks had fallen so far, so persistently, that they must at last rally a little. Thus my heart skipped ne'er a beat when the Dow rallied today 207.85 (1.65%) to 12,795.96. Nor did it palpitate at the S&P500's close 27.01 (1.99%) HIGHER AT 1,386.89. I was neither scairt nor amazed.

Rally ought to carry stocks quickly at least to the 200 DMA (12,992) or a tad higher, where it will also strike the downtrend line. A longer term possible target is the neckline from the January - May head and shoulders left behind, about 13,300. Conceivable, if you have a rubbery imagination, is a rally clean to the upper jaw of death, about 14,000.

'Twill all be for naught, like running pumps on the Titanic. Stocks remain locked in a primary downtrend or bear market, and nothing has happened to change that, and won't for several years.

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.