Before we leave the subject of weird charts distorted by criminal central bank shenanigans, y'all go look at the US dollar index chart from yesterday. Looks like an EKG of somebody's heart stopping: http://scharts.co/1HEYhF1
Friends, this ain't normal, none of it. Nature has better manners.
Dollar index was right active today, too. It opened above its 20 DMA (97.13) and climbed as high as 99.76. Ended up at 99.58, gaining a hefty 80 basis points (0.81%). All the same, for the present at least the FOMC's announcement yesterday broke the dollars climb.
Come to think of it, after what the Swiss Central Bank did to traders in January, and the Fed yesterday, I don't know why anybody would have nerve enough to trade currencies. 'Tain't that much fun.
If I was the euro I'd be checking to see if my burial insurance was paid up. It jumped up to close yesterday about $1.0800 and even touched its 20 DMA & the downtrend line, but today it is -- literally -- right back where it was before the party began. Lost 2.10% today & ended at $1.0639. That says to me that the market does NOT believe the euro is worth this high rate any more than it believes the dollar deserves its "low" rate. That's not what I believe, now, cause I believe that both of 'em ought to be hanged, drawn, and quartered & their body parts hung on the city gate to rot as a warning to others. The market, however, which has the attention span of alone fruit-fly in a roomful of rotten bananas, does believe the euro's too high & the dollar too low. (I have not yet decided yet but am pondering whether the central bankers ought to get the same treatment as their respective currencies.)
Yen fell 0.71% to 82.71, still near the bottom of that range it has habituated since December, from 82.2 to 86.3. Hardly any life there.
Stocks lost their mojo today. Watching today's stock market coming off yesterday's FOMC fix reminds me why I don't do heroin -- too hard coming down.
Dow gave back 117.16 (0.65%) to dip beneath 18,000 again: 17,959.03. S&P500 puked back 10.23 (0.49%) to 2,089.27. Today ain't fatal but it's none too inspiring, either.
Whooo-eee! Look at that Dow in Silver! Fell like a one-winged albatross from the top gator jaw through the 20 DMA. Ended at S$1,440.97 silver dollars (1,114.5 troy ounces), down 2.03% and below the 20 DMA at S$1,453.87 (1,124.48 oz).
Dow in Gold fell but not as sharply, only 1% to G$317.11 gold dollars (15.34 oz). Closed barely above the upper gator jaw, but promises to fall further tomorrow. Every day's like Christmas Eve, just waitin' for good things to come.
We need to view these metals' closes not from the perspective of where they closed on Comex yesterday but in the aftermarket. After all, Comex closed before the FOMC announcement caused everybody's scalp to blow off.
Gold closed Comex up $17.70 (1.5%) at $1,169.10, but was about even with yesterday's late trading. In other words, it didn't really make any new headway today, but did hold its own against a dollar up 80 basis points.
Silver closed Comex up 3.75 or 57.3 cents at 1609.8c. That's about 3 cents higher than yesterday's aftermarket.
So when it's all said & done, what did we gain out of all the razzle-dazzle? Gold pushed up to its top trading channel line and near its 20 DMA. It is positioned to break out. You can see that on this chart, http://scharts.co/1Gfi8tl All the indicators I regularly watch have turned up, arguing the next move will be toward the treetops. Yet remember, dear friends, gold's overall trend is down so it must prove itself like an old convict on a new job. Must best that last high at $1,223, then the $1,308 high where it failed in January.
Daily chart shows that gold held with a V-bottom at $1,160, which was good. Sets the stage for a rise tomorrow.
Silver's 5 day chart just chirps good things. It corrected & made a low at 1585c, then climbed again like a Sherpa on Mt. Everest. On a longer term chart it did, in fact, break out & close above the upper boundary of that long-building falling wedge. I want to see a strong day with another 60 cent or more move and a close above 1700c. But that will require silver to come bursting out of that wedge tomorrow and closing the week with a big show. Here's a chart http://scharts.co/1Gfid07
I somehow failed to refresh the gold/silver ratio chart yesterday. Y'all need to take a look at it because it is SHOUTING a powerful message. http://scharts.co/1Fq4lmt
It shows an upward breakout with this recent gold & silver weakness, BUT the breakout FAILED. Now it has not only turned down but obligingly closed today well below its 20 & 50 day moving averages, turning momentum down. In fact, all indicators point down. That falling ratio whispers, "There's something y'all aren't seeing that intends to pull silver & gold higher." That's what a falling ratio means, higher silver & gold prices.
And by the way, platinum and palladium recovered sharply yesterday, too.
On 19 March 1644 the Chongzhen Emperor, facing overthrow of the Ming dynasty by internal rebellion and the approaching Manchu army, committed suicide. Upon his death dozens of loyal high level officials and over 700 imperial house hold scholars killed themselves, as well as 300 imperial maids.
He was the last Ming dynasty emperor & the Qing or Manchu dynasty succeeded him shortly. All this happened about the same time that the reign of paper money began in China and an unvarying SILVER standard was instituted which lasted until 1912. If I had Ralph Foster's excellent history of fiat money with me I could look it up, but I am virtually positive that the Chinese silver standard began about that time, after paper money had tortured the Chinese for centuries.
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger