On the wall where I can see it frequently hangs a saying: "In a bear market, money returns to its rightful owner." Any know-nothing knothead can make money in a bull market, you just have to buy & wait, but in a bear market all those proud Know-nothings who had puffed themselves up over their investing genius are relieved of their easy money. "In a bear market, money returns to its rightful owner." Count on it. Today zillions of dollars went to money heaven, or, out of the pockets of some into the pockets of the not so credulous. Stock indices flowed red across the board, & deep red it was. Dow Industrials skidded down 331.34 (1.86%) to 17,501.65. S&P500 dove 37.62 (1.83%) to land at 2,020.58. Where does that leave them? Both are below their 20 & 50 day moving averages. 200 DMAs look at 16,953.82 & 1,959.4. Last lows were at 17,067.59 (watch that number) & 1,972.56. Volume is rising, all indicators point down. Tomorrow, stocks will be cheaper than they were today. If not tomorrow, Wednesday. Dow measured in metals nose-dove, both falling below THEIR 20 & 50 DMAs. Remember, remember, both have been sketching out Gator Jaws patterns, megaphones or broadening tops that are a fatal reversal pattern, but slow to unfold. Dow in gold fell over G$10 today, barely holding on above G$300 with a close at G$300.15 (14.52 troy ounces). Bottom Jaw stands tomorrow about G$293.54 or 14.2 troy ounces. All indicators have pulled the plug. Dow in silver lost S$63.00 silver dollars (48.73 oz) to end the day 4.31% lower at S$1,397.68 (1,081.02). Bottom jaw tomorrow bites about S$1,318.79 (1,020 oz). By now y'all have caught on that what's happening in oil is not the product of natural market forces, right? It's widely mooted that the Saudis have decided to spike the US oil shale industry by continuing to pump their cheaper oil, but that doesn't explain it all. I bet if you look at some of those sell tickets in the futures market you'll find Nice Government Men fingerprints. No doubt the present administration is numb enough to reality that they really are picking a war with Russia, whose government derives 50% of its revenue from oil. Never pays to back a bear into a cave. You go in there to get him, he might come out instead of you, and Bernard O'Bama ain't no Davy Crocket, "b'ar ciller". WTIC closed down 5.42% at $49.95/barrel. Having punched through the top of that wedge on Friday the US dollar index predictably rose today, up 0.24% or 22 basis points to 91.65, and punching into nosebleed Oversold atmosphere. If the causality-challenged Masters of the Universe at the Fed are causing this, they are about to get a lesson in their own stupidity. They will crush US exporting firms, and cause big problems for all importers, too. Euro sank beneath $1.2000 today, at one point as low as $1.1893, but ending down "only" 0.57% at $1.1934. I reckon the central banker criminals are making it "scary" enough to sell more inflation (QE) to the suckers in the public. Tis a dangerous game. Yen actually rose 0.72% to 83.6c/Y100, not quite above its 20 DMA. A rally may be in store. All right! I've had a gutful of this up and down in silver & gold. Today gold rose $17.90 or 1.51% to $1,203.90 while silver dashed by it, up 2.83% (44.5 cents) to 1617.9. Here's my gutful: it don't say what you think it says. It don't speak weakness, it speaks strength, 'cause they keep on bouncing right back. First there was gold's plunge on 2 January, only to end the day HIGHER. First half of a key reversal. Today came the second half, a sharply higher close, and above the 50 ($1,192.59) and 20 9$1,198.08) day moving averages. Whoa, whoa, don't get in such a hurry you forget this? That low on 2 January sank down & reversed exactly where, where I say? Right at the shoulder line of my putative upside-down head & shoulders, 'zackly what it should have done if it really is an UDH&S. If so, next step will be to run for the neckline above around $1,230/$1,240. Go look at the chart, http://scharts.co/1tvDPnr Same holds true for silver, & a key reversal. Since the 1 December bear raid that turned out to be a b'ar-killer, silver has found plenteous, gleeful buyers around 1550c. Sure enough, came last Friday when the bears played their game again, silver stopped at 1551c. Today it jumped up 44.5% off that trampoline, and closed right on the 20 DMA (1618c). MACD has turned up, along with Rate of Change and RSI. Headed higher, both of 'em. Need confirmation, though, silver above 1650c and gold above $1,210. Dad-durn! It's good to be alive today. Well, every day, but today especially. On 5 January 1836 Davy Crockett arrived in Texas, just in time for the fun.
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger
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