Thursday, February 20, 2014

Silver and Gold Prices Have Bottomed, Period.

Gold Price Close Today : 1317.10
Change : -3.50 or -0.27%

Silver Price Close Today : 21.678
Change : -0.166 or -0.76%

Gold Silver Ratio Today : 60.757
Change : 0.301 or 0.50%

Silver Gold Ratio Today : 0.01646
Change : -0.000082 or -0.50%

Platinum Price Close Today : 1410.90
Change : -12.00 or -0.84%

Palladium Price Close Today : 736.90
Change : 0.90 or 0.12%

S&P 500 : 1,839.78
Change : 11.03 or 0.60%

Dow In GOLD$ : $253.21
Change : $ 2.12 or 0.84%

Dow in GOLD oz : 12.249
Change : 0.103 or 0.84%

Dow in SILVER oz : 744.22
Change : 9.90 or 1.35%

Dow Industrial : 16,133.23
Change : 92.67 or 0.58%

US Dollar Index : 80.320
Change : 0.100 or 0.12%

Silver and GOLD PRICES kept on relaxing today. Although they closed lower on the Comex (lovely shade of tape painting), at end of day they were higher. At Comex close the GOLD PRICE had lost $3.50 (0.3%) to $1,317.10 and silver gave up 16.6 cents (0.8%) to 2167.8c.

Looking at both charts, SILVER and gold are forming flags or pennants. These formations form after a sudden high rise as the market trades sideways digesting the quick gains. Rule of thumb says "flags always fly at half staff," i.e., the flag marks the half way point of the move.

I wore my eyes out doing another study of indicators today -- too complicated to explain, but it says very loudly and with very small chance of error that silver and gold prices have bottomed, period.

Do y'all ever get tired of the Self-Appointed Righteous pontificating in their nasal voices over the airwaves about how "we" (they always carry a mouse around in their pockets) "must" (always imperative) correct some wrong or other in the world, whether its keeping children in Hong Kong from getting too many spankings or putting pants on poor naked cats all over the world?

Mercy, I am plumb wore out with it. It's like having to live with Hillary Clinton or Eleanor Roosevelt, or like waking up in a nightmare being married to both of 'em. Listen, I am too busy trying to mind my own business and straighten my own self out to run around the country or the globe messing in other people's business. But this same meddlin' mentality has seized control of US foreign policy so that every time "we" (there's that mouse again) don't fancy what somebody else does, we launch an invasion and go kill 'em to save 'em. It's called the "Janet Reno Waco Option."

Latest crisis is what will Colorado do with the $100 million in sales tax it's collecting on marijuana sales. Colorado's governor with the improbable and ironic name Hickenlooper wants to spend $50 million of it on programs to keep kids from smoking dope. Now, this leaves me scratching my head. Maybe y'all can make sense out of this. I can't.

Let's look at markets. Maybe they'll make sense.

Stocks recovered somewhat today. Dow added 92.67 (0.58%) to 16,133.23 while the S&P500 managed about the same gain with 11.03 points or 0.6%.

There's an eye-catching divergence between these two stock indices. On this latest rally the S&P500 made an intraday high yesterday at 1,847.50, nearly the same as its January new all time high at 1,850.84. This makes a screaming megaphone or broadening top formation since last November with higher or flat highs and lower lows.

Compare that to the Dow, the "senior" index. Since the Dow's intraday all time high at 16,588.25 at end-December, the Dow has only fallen and fallen. And the February reaction has only taken it as high as 16,225.72 yesterday. WHY do these two indices look so different? Why does the Dow look so much weaker than the S&P500?

Meanwhile the Dow measured in metals continues to slide. After a little bounce up yesterday the Dow in Silver dropped 0.74% to 739.55 oz, dancing around its 200 DMA (now 740.70). Dow in gold is not falling nearly as fast, down today 0.33% to 12.20 oz (G$252.20 gold dollars).

US Dollar Index rose a measly ten basis points today (0.12%) to 80.32. Dollar still gives no unequivocal hint which way the Nice Government Men intend to take it. The schizo-euro today flaked and dropped back below that old uptrend line, apparently forced back by the longer-term downtrend line. Closed $1.3719, down 0.13%. Yen went sideways and the Japanese Nice Government Men went home for a well-earned cup of hot sake.

On 20 February 1811 Austria declared bankruptcy. The more things change, the more thay remain the same.

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

- Franklin Sanders, The Moneychanger

© 2014, 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 or 18 ounces of silver. or 18 ounces of silver. US $ and 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.