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Thursday, January 24, 2013

The Silver and Gold Price Corrected Today with Gold Closing Down $16.80 at $1,669.50

Gold Price Close Today : 1669.50
Change : -16.80 or -1.00%

Silver Price Close Today : 31.695
Change : -0.714 or -2.20%

Gold Silver Ratio Today : 52.674
Change : 0.642 or 1.23%

Silver Gold Ratio Today : 0.01898
Change : -0.000234 or -1.22%

Platinum Price Close Today : 1682.30
Change : -6.70 or -0.40%

Palladium Price Close Today : 725.95
Change : -3.70 or -0.51%

S&P 500 : 1,494.82
Change : 0.01 or 0.00%

Dow In GOLD$ : $171.19
Change : $ 7.50 or 4.58%

Dow in GOLD oz : 8.281
Change : 0.363 or 4.58%

Dow in SILVER oz : 436.20
Change : 11.03 or 2.59%

Dow Industrial : 13,825.33
Change : 46.00 or 0.33%

US Dollar Index : 79.98
Change : 0.094 or 0.12%

The GOLD PRICE lost $16.80, falling to $1,669.50 and the uptrend line from the June low. Owch! Even touched the 200 DMA (1,664.01). Right there about $1,665 gold has done a lot of trading, so that's a likely place to stop. Could even drop to $1,650, but there's not really much indication of any greater weakness.

That long 8 day SILVER PRICE upmove made me suspicious yesterday, and ought to have made me more suspicious. Silver fell 71.4 cents today to 3169.5c, giving back three days progress and falling beneath the 50 DMA (31.90) again. Came to a stop right on the uptrend line form the June '12 low. Fairly strong support at 3150 or stronger support above 3100c ought to catch it. Low today came at 3158c.

Lose not heart, neither puff and blow. Corrections happen. Keep your eyes open to buy a little more, maybe tomorrow.

Dow reached a new high for the move, an the upper boundary of the Jaws of Death topping formation. Rose 46 points (0.33%) to 13,825.33. Here's part of what's odd: S&P500 gained a measly 1/100 point to $1,494.82. Most other indices dropped, but the Russell 2000 gained 0.39% and the Wilshire 5000 added 0.1%. No enthusiasm anywhere but the Dow. RSI at 73.64, way overbought, and MACD out of line, too. Correction coming.

More oddness: when the Dow in Gold broke out above resistance yesterday, I thought it was a fluke. Today it gapped up again, to 8.28 oz (G$170.54 gold dollars). Indicators warn it is way overbought, but the next resistance is about 9.12 oz (G$188.53).

None of this makes sense after its September breakdown, and another breakdown in November, but I don't tell the markets what make sense, they tell me.

It gets odder still. The Dow in Silver gapped up today above its 200 day moving average, even above its 20 DMA (434.96) to close at 435.83. However, it has NOT broken out above resistance, and stocks look much weaker against silver than gold.

Two paths split off here. Either stocks will blow out the top much higher and gain on silver and gold, or stocks are within a day or two of some top. Stocks look way overbought here, but overbought can always get overboughter.

US Dollar index gained 9.4 basis points (0.12%) to 79.98, not quite above to breach 80. Euro rose 0.44% to 1.3375, but the surprise came in the yen, which dove 1.95% and gapped down to a new low at 110.61 c/Y100. Seems the yen can go lower after all.

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

- Franklin Sanders, The Moneychanger
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© 2013, 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.