|Dow in GOLD $s||295.21||5.29||1.82%|
|Dow in GOLD oz||14.28||0.26||1.82%|
|Dow in SILVER oz||1,038.22||10.71||1.04%|
|US Dollar Index||93.53||-0.23||-0.25%|
A reader called me yesterday after reading Bob Moriarty's article about swapping gold for platinum. The article is here, http://bit.ly/2909qXR If y'all think swapping gold for platinum is a good idea, remember we help keep your transaction costs LOW because we charge commission on one side of the trade only. Whatever you take out we charge at our cost.
Brexit froze markets again today, but not stocks. They rose on the open, evidencing that investors had decided Brexit would fail. (I refuse to address their presumed belief that EU membership is good for the British economy, on grounds that my mind is too fastidious to sully with such nonsense. While a pan-European trade zone might be a great idea, the expensive, tyrannical EU bureaucracy vigorously squanders any advantage.)
Dow ended the day up $230 (1.29%) at 18,011.07. S&P500 gained 27.87 (1.34%) to 2,113.32. Take a picture, folks: this is as good as it gets. What new rabbit remains to be pulled out of the hat? Somewhere out there, not far, is a cliff, waiting for stocks to stumble over its edge.
Markets deciding they needed no safe haven after all sent the US dollar index down to a new low for the move. At its worst it hit 93.03, but closed at 93.53, down only 23 basis points (0.25%). Since this was a new intraday low, it pretty much decapitates any idea of a rally in the dollar index. It has made two lower highs and two lower lows. Now it's heading for that critical 92.50 level again.
Euro rose 0.6% to $1.1382. This is a slightly lower high than the last. Euro would have to close above $1.1574 to turn its trend seriously up. And we found out today that safe haven buying was furnishing all the demand under the yen. It fell a huge 2.07% to 93.63. Y'all look at this chart, http://schrts.co/UuqBFa
It gapped up off the May low, gapped again mid June, painted a sideways island for five days, then gapped down again today. This completes an island reversal, but it needs to be confirmed tomorrow by a lower close.
The gold price closed Comes $6.60 lower at 41,261.20. Silver in fact rose 4.3¢ to 1734.8¢. In the aftermarket gold backed down to $1,258.60 and silver hardly backed off at all, only 2.8¢ to 1732¢.
If the picture for stocks is as good as it gets, for gold it's as bad as it gets. Maybe there's a day or two of follow up washout, but it will simply complete this short correction.
What grabs my jaws & makes me look is the gold/silver ratio, DOWN today from 73.274 yesterday to 72.700 -- 72.667 if you look at the aftermarket. Folks, if silver & gold are weak, that just ain't right. That ratio does not weaken when metals are weak, it strengthens. Okay, one swallow doth not a spring make nor one roach an infestation, nor one day's trading a trend, but it is a harbinger.
Today gold closed the day (not Comex) right at its 50 day moving average ($1,259.24). The 20 DMA lieth right beside it at $1,259.01. A retreat to the 50 DMA is enough to qualify as a shallow correction. Now that this Brexit kerfuffle is out of the way, we'll find out what gold's made of.
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.