One glance at the chart tells you that silver & gold & platinum & palladium all trod water this week. On the other hand, stocks rose this week, mostly today. US dollar index flatlined, & today silver & gold broke. Lo & Behold! The Dow exceeded 12,850 today, & fact of the business is, nearly reached the May intraday high (12,876). Dow today gained a respectable 156.82 points (1.23%) to close at 12,862.23, nearly on the 12,869.95 high. S&P500 was even happier, rising 19.36 points (1.46%) to 1,344.90. What has everybody clambering all over each other to buy stocks? Well, if you can believe it, government numbers. Personally, I don't put nearly as much stock in government numbers as I do in astrology, & I couldn't even tell you what my birth sign is -- the Possum, or the Turkey Buzzard, maybe. Yet in this age of Reason, High Technology, & Right Big Government Lies, people still suck up those government numbers like they were single malt scotch at a free bar. All this big news was that the government's unemployment rate dropped to 8.3%, nearly the low for the last three years. (On another note, if you believe unemployment is 8.3%, call me about some wooden Krugerrands I can sell you really cheap.) Truth is, market was looking for some excuse to rise, that was the news today, so it took the bait. Oh, and by the way, did I tell y'all that a Greek Debt Deal Is Near? Y'all might wonder why I am so negative on stocks. Because they are in a primary down trend (bear market), & if I don't do much more than keep you out of stocks, five years from now you'll still think I was the brightest bulb in the box. Hide and watch., That US Dollar Index this week played Bait & Switch. Looked like it would break through 79.50 & fall off the face of the earth, but it stopped and rallied & even ended the week 7.6 basis points higher than last Friday. Today the dollar index lost a tee-tiny 3.2 basis points (0.04%), leaving me wondering why the currency market has gone so quiet all of a sudden. It ended at 78.959, but climbed as high as 79.357. This currency thing isn't clear. Dollar may rally still & euro may sink to its intrinsic value -- zero -- before the dollar does. The 1.3200 level seems to have blocked the euro this week. Closed 1.3155 today, up 0.06%. Also bumping up against its critical 62 day moving average, & can't punch through. Brace yourself for another stumble for the euro., Reason hath fled the yen market. Closed today down 0.50% at 130.56c/Y100 (76.59/US$1), giving back a third of its spectacular gains since 24 January. It gaps down, then bounces right back, gaps up, then waterfalls down. Why does that picture make me thing of Nice Government Men in their cubicles phoning their partners in manipulation on the market floor? Appears that silver & gold broke today, or at the very least, must back off for a running start at $1,750 & 3400c. Gold lost $18.90 to close Comex at $1,737.90, and in the aftermarket lost another $10 to $1,726.10. Silver lost 42.6c, closing at 3372.5c, but dropped nearly another 25c in the aftermarket, falling to 3349c. "Twas a big tumble for both. Let's look closer. Gold wiped out all its gains since Monday down at $1,725 support/resistance. After rising all week, that's not terribly surprising, but come Monday gold had better wake up & dig its claws into the bark, or it might fall out of the tree. Support stretches out its limbs at $1,725 & $1,705. Breaking those takes gold down to $1,680. Up above, gold's high close has been $1,756.80 (yesterday), but it hasn't been able to breach $1,760. Therefore, watch that level on the upside. Today's break probably wasn't enough to correct the move up from $1,523.90, but a drop to $1705 might be. More likely target is $1,675. That would also mark a kiss-back to the downtrend line. Silver looks like gold, but the range is 3440c & 3290c. Always bear in mind that silver is much more volatile than gold, both upside and downside. First, if silver's rally has not been stymied at the 300 day moving average (3448c) for a goodly correction, then it can't fall below 3300c. Next, a routine and shallow correction would sweep silver to 3250c - 3200c. If things get pricklier, then 3100c. Lowest target expected would be 2950c. Of course, we have to patiently wait to see how the correction unfolds. Meanwhile, another buying opportunity is coming y'all's way. Stop your ears now against all the Wall Street Sirens who will be shrieking the silver & gold bull market has died. By now you understand that those folks don't know no more than somebody who works as a spokesman for a government numbers office. Well, I know election year has come because so many pious confessions are spontaneously erupting from politicians' lips. Yesterday it was Bernard O'Bama shaking out his Christianity before the National Prayer Breakfast, and even Newt Gingrich is claiming to have got religion. You may think I am harsh to say these things, but I say it's as sorry as gully dirt for politicians to trade on their faith. I never have thought much of them "talkin'" Christians, only the "walkin'" ones. They never need to tell you what they believe, because you already know from watching 'em. All the This Day In History websites say that the 16th (income tax) amendment was ratified 3 February 1913, but that's a lie. Secretary of State Philander Knox fraudulently and knowingly certified it when it had never passed. The irregularities in the supposed state ratifications are too numerous to list, but you can read all about it in "The Law That Never Was" by Bill Benson & Red Beckman. Of course, if you don't pay the income tax, the government will try to jail or kill you. Speaking of the IRS, tax time is fast approaching. My friend, Dan Pilla, Jr., at www.taxhelponline.com has over 25 years experience fighting with the IRS for taxpayers' rights. If you have bad tax problems, Dan's the man to call. One of the 11 books he has written is "How to Get Tax Amnesty." Check him out. I receive no remuneration whatever for recommending Dan. Y'all enjoy your weekend!
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger
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