|Gold Price, $/oz||1,252.90||-1.80||-0.14%|
|Silver Price, $/oz||16.52||0.04||0.24%|
|Dow in GOLD $s||288.75||1.49||0.52%|
|Dow in GOLD oz||13.97||0.07||0.52%|
|Dow in SILVER oz||1,059.44||1.41||0.13%|
|US Dollar Index||95.24||-0.05||-0.05%|
I reckon I couldn't have picked a better day to play hooky than last Friday, as very little transpired.
As usual, that scurvy tapeworm, the US dollar index, lies at the knot of the riddle (to mix a couple of disgusting metaphors). Chart's here, http://schrts.co/dIXAR3
Last Wednesday the Dollar index traded up through its 50 DMA, then Thursday penetrated the downtrend line from February -- and stopped. Jes' balked like a flop eared mule. And has been stuck there ever since, too lily-livered to bust through 95.50 resistance.
What's the big deal? Just this, markets that break through resistance & downtrend lines tend to show at least some life & enthusiasm, reaching into the new territory. Even with the Fed sending out OLs (Official Liars) to jawbone up the dollar with more empty threats of raising their discount rate in June, dollar index can't advance. Now this may not be permanent, it may be passing, but it sure ain't no way to start a rally. Looks weak & sickly as a runt pig.
Japanese yen benefited from trade balance news today and rose 0.78% to 91.53. This leaves the yen broken down from a bearish rising wedge, but bouncing off its 50 DMA. Euro lost 0.04% to $1.1218.
Lift up your eyes to the horizon! Y'all realize that we are watching a currency centrifuge in slow motion, right? The huge overindebtedness is whirling currencies & economies around faster and faster until they are shaken to pieces. Mercy, don't be one of those who can't believe an inevitable outcome because it's not yet before your eyes. The default will come, & with it transglobal agony. Facebook won't save you, nor Amazon. Not even Netflicks.
Stocks are breaking down through the neckline of a head & shoulders top. http://schrts.co/Q6KUW0
Like busy fire ants beneath the surface, I suspect the Nice Government Men of the Plunge Protection team and sweating themselves to dehydration trying to keep stocks up. Dow gained -- get out your magnifying glass -- 2.09 (0.01%) to 17,503.03, but other indices lost millimeters. S&P500 shaved off 2.79 (0.14%) to 2,049.53.
Dow in Gold & Dow in silver are correcting the first little leg down of their unfolding plunge. DiS is here, http://schrts.co/Q6KUW0 Dow in Gold here, http://schrts.co/8Sv0tc
Gold lost $1.30 today to settle on Comex at $1,251.10. Silver subtracted 10.9¢ to 1641¢. Both have skidded to a halt after last week's break, at least temporarily.
Gold chart can be found here, http://schrts.co/rXkzy8
My suspected targets are the bottom of the present uptrending range, which would be a very shallow correction indeed, and the $1,208 - $1,190 area. Below that a Freddie Kruger correction would cut to the 200 DMA ($1,161). The height of that triangle gold formed in May (blue dashed line) projects a decline to $1,200 or $1,190. Volume is rising slightly as it falls.
Silver's chart is here, http://schrts.co/ztbfs7
Most likely targets are 1600¢ and the 200 day moving average, now at 1618¢. As for gold, indicators point down for silver but it's taking its time to work lower. I am anxious to see how Commitments of Traders reports have changed when they come out this week. I keep thinking this will be a shallow correction, but the market may slap my jaws.
Don't mess with Czechs. On 23 May 1618 in Prague began the 30 Years War when Czech protestants tossed three Habsburg governors out a window -- the Defenestration of Prague. It was NOT a first story window, and this was not the first time the Czechs had removed offensive officials by defenestration. They killed seven city council members that way in 1419.
Now all you squeamish modern folks will wince at the thought of pitching offending officials out the window. However, think about it. Think how it would improve the manners of those defenestrated, and how respectful it would render the rest, the not-yet-defenestrated. Might work better than a recall election, and certainly more permanently.
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.