|Gold Price, $/oz||1,259.80||15.40||1.24%|
|Silver Price, $/oz||16.97||0.59||3.61%|
|Dow in GOLD $s||295.44||-2.55||-0.85%|
|Dow in GOLD oz||14.29||-0.12||-0.85%|
|Dow in SILVER oz||1,061.12||-34.22||-3.12%|
|US Dollar Index||93.61||-0.22||-0.23%|
As I was saying yesterday, "The lowest risk place to buy a rallying market is the bottom of Wave 2." Today markets seconded that with a LOUD Amen. After yesterday's lows Silver & Gold came today ready to PARTY. Most of it happened while we slept. At 1:00 a.m. Eastern, gold was still below $1,250, but it steadily rose and rose to $12,55 by 9:00, then shot up to $1,267.30 about 11:00. Time I got in here early this morning, gold was already at $1,260. To late to hop on for that leg, but not too late for the LONG ride.
Silver outperformed gold. Gold rose $15.40 (1.2%) to close Comex at $1,259.80. Silver vaulted 59.1¢ (3.6%) to 1696.8¢. Gold/Silver Ratio sank 2.3% to 74.246.
Story doesn't stop there by any means. Gold pierced those 20 & 50 DMAs like a 20 gauge needle punching through cowhide, and closed right on that downtrend line that yesterday seemed to hover so far above. Turns out gold needed only one day to reach it. Look for yourself, http://schrts.co/wlImC2
Behold silver, http://schrts.co/QMvKqM
After Friday's leap, silver hunkered down for two days then jumped for all it was worth today, brushing through 50 day moving average, 20 DMA, & downtrend line like they were bead curtains.
All this has the manic feel of a wild Wave 3 beginning. Yes, there's more resistance to be conquered at 1760¢ and 1806¢, and at $1,265 and $1,287, but gold has already jumped two resistance levels. Doesn't seem to bother it or slow it down.
As I said yesterday, I would be buying metals now.
Platinum and palladium look much like silver & gold, trading right up to the downtrend lines but not quite punching through. Confirming silver & gold.
US dollar index hurt itself badly today, falling 22 basis points (0.23%). It has now sunk to the area that caught it earlier this year (93.62), for a while. Watch 92.50, where the dollar must hold or perish.
Stocks millimetered up again, completing the right shoulder of a head & shoulders top. Within that, both the S&P500 & Dow are forming rising wedges, which I recall usually resolve dirtward. Dow closed at 18,005.05, up 66.77 (0.37%) S&P500 added 6.99 (0.33%) to 2,119.12. Confucius says, "When plug is pulled, water will speedily drain out, taking stock profits with it."
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.