|Silver Price, cents/oz.||1,580.60||1,519.10||-61.50||-3.9|
|Gold Price, dollars/oz.||1,253.80||1,221.60||-32.20||-2.6|
|Dow in Gold Dollars (DIG$)||290.22||296.40||6.18||2.1|
|Dow in gold ounces||14.04||14.34||0.30||2.1|
|Dow in Silver ounces||1,113.65||1,153.03||39.39||3.5|
|US dollar index||95.12||96.17||1.05||1.1|
THIS WEEK'S MARKETS:
The expected precious metals correction showed up this week, hammering all heads. Stocks looked sickly all week, finally ended down, but not as much as they merited. Rally is probably over. US dollar index recovered 1.1%, and fell not into the abyss - yet. Platinum & Palladium want to drop with silver & gold.
US DOLLAR INDEX has risen the last 5 days -- not enthusiastically, 'tis true, but risen still. Test will come at the 200 day moving average (97.08) & the 50 DMA (97.40). Dollar is locked in a downtrend, but can't be written off till it closes below 92.50.
Euro flatlined today, up 0.1% to 1.1181. Yen dropped 0.44% to 88.59. Both are technically in uptrends, but with gigantic volatility & indecision.
Inflation markets have switched to full correction mode. WTIC eased off 0.43% to $39.59/bbl, but it has broken its uptrend line and is fixing to break its rising 20 DMA. Next move down. Copper also has broken its uptrend line, ending today little changed at $2.238, but broke down still. CRB gapped down today, leaving behind what looks like an island reversal. Roll on downhill.
Stocks kept on chiseling away their price this week. None of the losses was huge, merely losses, consistent with a market that has lost buying power.
Today the Dow gained 13.14 (0.8%), closing 17,515.73. Gain all came very late in the day. Great to have friends in high places, I reckon. S&P500 never quite made it through unchanged. Ended down 0.77 (0.7%) at 2,035.94. Gravity will become vengeful below 17,500 and 2024.
At this stage in world history, the Dow in Gold (closed today at 14.40 oz) and the Dow in silver (1,152.35 oz) are aimed higher. DiS barely crossed its 200 DMA today, but soon hits stiffer resistance.
http://schrts.co/ohwLZP Silver & gold are just beginning a correction stocks will soon share with more fervor. Till then, the Dow in metals will rise.
The Volatility index, which measures fear in the stock market, reached Smugness a few days ago at 13.75. Today it tried to shoot up, but ended the day falling back. When it is rolling up to Terror (around 30) it needs 2 - 4 weeks to make the whole trip. VIX is telling us stocks are near breaking, and will break lustily and large. I remind y'all that both the Dow & S&P500 have built out bearish rising wedges, and broken down from their tips -- not a forerunner of higher prices. Look here, http://schrts.co/Q6KUW0http://schrts.co/Q6KUW0
Gold scraped off another $2.10 (0.1%) on Comex to $1,221.60. Silver backed up 7.2¢ (0.47%) to close at 1519.1¢. Gold/Silver ratio rose again today, up 2.3% in two days.
That ratio has indeed bounced off the lower channel boundary, as y'all can see. http://schrts.co/kh9gOy It gapped up yesterday, above the 50 DMA, and ineluctably will push forward toward that top channel boundary, now around 84. In other words, silver will fall faster than gold.
Yesterday gold finally began paying the promise of that Bear Flag by plunging. Today it took a breath, but next week it will resume falling. This could last until mid-April, and gold might reach $1,195 or $1,170.
Silver is dealing from a weak hand. Today's 1510¢ low approached the 50 DMA (1502¢). Most likely target is the lip of that bowl silver broke skyward from, about 1460¢.
However, nothing has changed my mind: silver & gold both bottomed and turned up in December, ending the post-2011 correction. Higher prices coming, after a correction.
But I could be wrong. I ain't no more'n a nat'ral born durn fool from Tennessee. I'm from so far back in the woods we have to order sunlight from Sears & Roebuck.
Tomorrow is Good Friday so I won't be sending a commentary. May God bless you all at Eastertide and always!
Y'all enjoy your weekend.
Aurum et argentum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
© 2016, 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. 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.