Janet Yellen came down like the wolf on the fold,
Her FOMC gleaming without silver or gold.
She opened her mouth but no wisdom came forth
Just more blowing wind like a gust from the north
More gassy nonsense, framed but to obscure
Their cluelessness still with more bovine ordure.
My language, 'tis strident, 'tis harsh to the core
For reason & truth are fall'n down to the floor
Ma Yellen & her toadies kick 'em fierce in th'head
And leave them a-bleeding and 'most nearly dead.
But truth has a way of avenging itself,
Redeeming from rascals all ill-gotten pelf,
Returning in bear markets gains and all money
The foolish had won under policies looney.
For in bear markets truth rises up from the floor
Money restoring to rightful owners once more.
(The end, with apologies to Lord Byron).
Another mouse burp FOMC announcement. More quasi-profound interpretation from more folks who never heard that it's better to keep your mouth shut and be assumed a fool than to open your mouth & remove all doubt.
Fed's non-action helped stocks not at all. Dow dropped 163.34 (0.94%) to 17,223.87. The S&P500, which has been marginally outperforming the Dow, lost more today, 24.61 or 1.21% to 2,004.94.
Getting technical, both the Dow & the S&P500 had built since December even-sided triangles. Today, both punched through the bottoms thereof. Other indicators I watch have turned negative, and volume rose briskly today, confirming the downwardness should abide.
Dow in gold has progressed & consistently confirmed its downside breakdown from the Gator Jaws pattern. Today the DiG lost 0.65% to close at G$276.38 gold dollars (13.37 troy ounces). This takes it below both the 200 day moving average (G$281.55 or 13.62 oz.) and the uptrend line from August 2013. No whisper of a turnaround.
Dow in Silver has not unfolded as much as the Dow in Gold, but sank another 1.28% today to $1,228.84 (950.43 oz). It rests right on the top channel line it threw over in September when silver was tanking. 200 DMA awaiteth at at $1,208.95 (935.05 oz).
Day after day piles up confirmation that the trend of stocks against silver & gold has turned down, and the price trend for silver & gold up.
US dollar index rose 50 basis points today (0.54%)at 94.76, but after falling 98 basis points yesterday. It has been left behind a toppy tower on the chart. Dollar may have seen it's highs. Too early to say., but a close below 94 would be a hint.
Just to keep in the back of y'all's minds, Euro's last low posted on 23 January its intraday low for the move at $1.11.66 & closed at $1.1266. Ended today down 81% from yesterday at $1.1287.
Yen keeps stumbling & bumbling in an uptrend, & hath formed an even- sided triangle. Above the 20 & 50 DMA's, presently intertwined. Set to climb.
West Texas Intermediate Crude Oil lost 3.06% to $44.38/bbl. Intraday low at $44.08 made a double bottom today with 13 January's $44.20. Not exciting but may be working on some kind of bottom.
Odd: silver closed unchanged at 1806.8. Gold lost 5.80 to $1,285.90. Odd.
Gold simply continued the decline begun yesterday, which in fact began with the top on the 22nd. Day before yesterday was probably not the bottom of the correction, but I don't expect it to go much further anyway, maybe as low as $1,255 - $1,260 support, maybe no lower than $1,270.00. Why do I think that? Because gold is in a power-move up to $1,350, and corrections in the middle of a power move usually are shallow. Heaven knows, I can be wrong, since I am no more than a nat'ral born durned fool from Tennessee.
Silver closed unchanged. Flatlined most of the day in a range from 1817c to 1794c. Little movement, little enthusiasm. Yesterday it fell as low as 1741c, which was near the neckline and near the 20 dma (1709c). Might fall clean to that 20 DMA. Don't want to see it fall below the neckline.
Really I'm worrying about unprofitable nickels and dimes. Not enough distance here to wait for. Silver bought at 1800c and gold bought at $1,285 will look dirt cheap a year from now.
On 28 January 1547 at age 9 Edward VI succeed his father Henry VIII as king of England.
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger