|Gold Price, $/oz||1,308.70||10.70||0.82%|
|Silver Price, $/oz||20.04||0.15||0.76%|
|Dow in GOLD $s||256.78||-1.95||-0.75%|
|Dow in GOLD oz||12.42||-0.09||-0.75%|
|Dow in SILVER oz||811.10||-5.64||-0.69%|
|US Dollar Index||79.83||-0.50||-0.62%|
Sorry I missed y'all yesterday, all the more since it was a near perfect day for silver and GOLD PRICES.
The GOLD PRICE rose today $10.70 (0.8%) to $1,308.70 while silver held its hand and rose 15.1 cents (0.8%) to 2004.2c.
Gold price's little correction yesterday was picture perfect. Friday it broke through resistance at $1,295 after several tries, but closed below $1,305 resistance at $1,303.20. Yesterday it closed down at $1,298, lower but still holding solidly above $1,295 support, and closed ABOVE $1,305 resistance at $1,308.7.
May I warble further? Today the gold price also closed above its 200 DMA ($1,296.90) and, yet there is more. Gold has now rallied out of the Dec-February upside down head and shoulders, broke through the neckline of that formation in a rally to $1,392.60, corrected back to the neckline for a final kiss good-bye last week, and now 'tis climbing again.
THIS would be the place to buy. Although I have not yet decided yet whether the correction is complete, or whether we will see one more up and down, but I doubt any later leg down will drop lower than what we have seen. Above the 20 DMA lurks at $1,319.82. Crossing that will bring out many more of gold's fair weather friends. The gold price has seen its bottom for a while.
The SILVER PRICE stands a gnat's eyelash from flashing an MACD buy signal, the full stochastic is turning up, rate of change is rising, AND (I'm almost out of breath) it bounced off its post-April 2013 downtrend line at end March. Yet for all in its favor, silver must yet close above 2015c. We ought to witness that tomorrow.
By the way, silver's performance yesterday was as good as gold, with a retreat to support at 1975c and bounce back today.
GOLD/SILVER RATIO today ended at 65.298, and is not dropping from its March peak as quickly as I would like, but what would I do with without something to fret about?
On to stocks, yesterday the Dow dropped only ten points while the S&P500 plunged a massive 20.5 (1.1%). That trashed the S&P500 chart. A two day waterfall took it from 1897.28 to 1845.04. This also was a completed key reversal. Today it cut into but closed above the 50 DMA (1,840.57), and flopped back 6.9 (0.38%) to 1,851.96.
The S&P is breaking down. Thus sayeth its position on the chart thus screameth its key reversal. Unless Wall Street's friends in the Plunge Protection Team, the Nice Government Men, step up quick the blood will be flowing up to the horses bridles.
Off a new all time intraday high on Friday, a push into new high territory, the Dow closed much lower, nearly 1%. That key reversal was confirmed yesterday with another drop and close below the 20 day moving average at 16,245.87. Today it bounced like a dead cat off the pavement, up 10.27 (0.06%). As with the S&P500, the MACD indicator has flashed a big red SELL signal. Much lower prices like ahead.
Dow in Gold has plunged in the last three days and today closed at 12.42 oz (G$256.74 gold dollars). This hints but does not confirm that the correction that began mid March has peaked. DiG is about to cross below its 20 and 50 DMAs. Close below 11.62 oz (G$240.21) takes it below the low of the Dec-March fall.
Dow in Silver dropped 0.93% today to 810.38 oz (S$1,047.76 silver dollars). It hovereth above its 20 DMA (805.93), first tripwire of a decline. MACD has turned down, and full Stochastics are confirming a downturn.
Today currency markets overthrew expectations. The Bank of Japan, contrary to the market's expectation, vowed it would hold off on monetary easing -- central-bank-speak for "inflating" -- in the short term. All the folks short yen promptly puked in their wastebaskets and splurted out orders to cover their short positions. Yen gapped up massively, above its 20 and 50 DMAs, from 97 to 98.5 at the widest. Closed up 1.34% at 98.29 cents/Y100.
Dollar took this news like a rockhammer in the teeth. Dropped a huge 50 basis points or 0.62% to 79.83, wiping out all its gains since mid-March. Considering how the US Dollar has struggled since bottoming in March, and now crashes through its 20 and 50 DMAs, it hath little hope for the future. It appears to have successfully transformed a nascent rally into Waterloo.
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.