|Gold Price, $/oz||1,284.40||11.00||0.86%|
|Silver Price, $/oz||17.43||0.11||0.65%|
|Dow in GOLD $s||285.40||-6.57||-2.25%|
|Dow in GOLD oz||13.81||-0.32||-2.25%|
|Dow in SILVER oz||1,017.47||-21.24||-2.04%|
|US Dollar Index||94.42||-0.21||-0.22%|
I would make fun of today's news, but how do you satirize people who are already disconnected from reality? It's impossible to exaggerate enough to out-do their lunacy. Muslim radical walks into a homosexual bar and shoots 49 people. Muslim is pledged to ISIS. However, Huffington Post says, "Don't Throw the Blame On Muslims for the Pulse Shooting." Goofier yet, the Chicago Tribune mumbles profoundly, "The target was all of us." What do the acolytes of the great god Diversity do when one diverse element kills 49 other, dissimilar diverse elements? Why, it threatens to homogenize diversity! In a blender.
The snake is eating his own tail. Country is becoming ungovernable.
A specter is haunting markets, and that specter is the Brexit vote. I smell a rat. US dollar index today fell 21 basis points (0.22%) to 94.42. However, the 10 year US treasury T-note yield fell 1.4% to 1.616%/ which is to say, the UST-note price rose. With Brexit in view on 23 June, don't y'all imagine folks would be selling pounds and euros & buying dollars and US treasuries? And yen? Yet the dollar keeps sinking. A NGM operation to discourage a panic out of euros into dollars?
Euro actually climbed 0.37% to $1.1293. This remains nowhere, above the 20 DMA but below the closely aligned 50 DMA. Yen, safely around the globe from Europe, jumped 0.74% to 94.21, which means that zillions of investors around the world are blind to what the Bank of Japan has done to Japan's government bond market, equities market, and economy. Disconnected from reality.
On Wall Street today they ran out of waste baskets. So many had been filled with puke & had to be sent out to empty, they just ran slap out.
Like a meteor from a summer sky, Dow fell 252.71 (1.41%) to 17,732.84, winding up below both the 50 DMA and 20 DMA, and headed toward that head-&-shoulders neckline about 17,300 where it will begin to fall like a Holstein cow pushed from a C-5 cargo plane. S&P500 plunged 36.92 (1.72%) to 2,079.06, below the 20 DMA but not quite the 50. Destined for lower things.
What's holding oil up I can't imagine. Chart is here, http://schrts.co/KvfGnd
It traced out a usually-deadly rising wedge, walked through the bottom boundary, but only today fell through its 20 DMA. Some fall approacheth.
Gold spurred its horse & jumped another $11.00, up 0.86% to $1,284.40. Silver leapt 11.3¢ to 1742.8¢, up 0.65%.
Today gold hit a new high for the move at $1,290.40. Look at it here, http://schrts.co/ZOy3jH
The rise is not over. Rising volume confirms rising price. RSI is not yet overbought. Momentum points up. Rate of change is steep, & all this hu-hu about Brexit leaves me nervous. If that's the only thing driving gold, what happens when that's removed? If the Brits elect to stay in the EU, all the pressure dissipates. If they vote to leave, gold may pound through $1,306 and into the stratosphere. Latest polls show more in favor of leaving.
As gold, so silver. Silver made a new high for the move at 1247¢, volume is rising with price, RSI is not yet overbought. In other words, plenty of room remains for further rises. But again I caution, nobody knows how much of this is occasioned by fear of Brexit.
Long as that fear holds & the dollar keeps falling, gold and silver prices will keep rising.
- 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.