Owch! Today the dollar index got busy proving that parabolic rises end always in woe, plunging for the fifth day running. O, Wo! It's worse still. The Dollar index today lost 65 basis points (0.67%) to end at 96.29, right firmly beneath 96.50 support and back under the downtrend line which April's rally had boosted it above.
Mo wo! RSI points down, MACD points down, ROC & full stochastics all point down. Down it is, then! (And down another 20 bps in the aftermarket!)
This week all rational people will be tortured once again by release of Federal Open Market Committee notes and more groundless speculation about when the Moros on the FOMC will raise interest rates.
As if that weren't painful enough to the fastidious mind, new coinages are being spawned like toads in spring to describe the Greek financial troubles. First was "Grexit," a Greek Exit from the euro. Next came Greccident, an accidental exit from the euro. Now comes the most likely state, Grimbo, Greece In Limbo where the negotiations over Greek debt drag on world without end. Whole thing has me Grexhausted.
Thinkin' on it a while, I wouldn't be surprised the Fed hadn't contributed to slamming the dollar to help their fellow criminals in the European Central Bank while the Greek crisis drags on. Whoops! My suspicion is showing again. But the euro did rise 0.75% to $1.0971 today. The euro has a modest uptrend working, but must climb over $1.1040 to break out into a rally, but it hasn't shown any more ambition than a vegan in a butcher shop.
Yen rose only 0.13% to 84.12. No fun there.
Inflation markets are dancin'. West Texas Intermediate Crude lifted 0.72% to $57.06/barrell. Rallying. Don't believe me? Go look, http://schrts.co/KvfGnd Copper's on the verge of breakout, http://schrts.co/02nSGN None of this matches or fits into the official Establishment "deflation" scare.
More seesawing in stocks: Dow & S&P500 up, Nasdaq & Nasdaq 100 down. Dow rose 72.17 (0.4%) to 18,110.14 but not enough to convince me of any serious intent to rise. Closed barely above the downtrend line. Might happen, but all the back and forth decreases the likelihood. SP500 scraped up another 5.84 (0.28%) to 2,114.76. Also closed above downtrend line, but has done that 4 times already without betterment.
[Don't gloat. Don't gloat. Don't gloat.]
Dow in Gold & Dow in Silver both tumbled further today. Both sliced through their closely-aligned 20 & 50 day moving averages like a sharp knife through Wonderbread balloon loaf.
Dow in gold fell 0.45% to G$309.04 gold dollars (14.95 troy ounces). Down below a bare G$15 lies the 200 DMA at G$294.37 (14.24 oz). Dow in silver tumbled 0.99% to S$1,411.40 silver dollars (1,091.63 oz), on its way to the 200 DMA at S$1,308.38 (1,011.95 oz). Indicators all pointing straight down.
Yesterday I said silver & gold would have to make good their gains by closing over $1,210 and 1660c. We half made it. Gold surged another $10.70 (0.9%) to close Comex at $1,214.00. Silver did close over 1650c, but rose only 19.7 cents (1.2%) to finish at 1659.1c
Today's gold trading was market by another 11:30 miracle. Gold moved sideways nonchalantly until 11:30 then shot from $1,205 to $1,211 quicker than a condo developer can skin a prospect. One jump, then sort of rolled up to $1,215, & closed near the top of the day's range.
But -- O, mercy! -- I am holding on to this. Gold in US dollar index spread gapped up and pulled away from that 50 DMA like a Saturn rocket. Don't take my word, go look for yourself, http://schrts.co/lEHI64
Whooaaa! Here's the same chart for silver, $silver:$usd, http://schrts.co/apTI4Q Look, look, two days to cut from below the bottom triangle boundary (in a failed breakdown) clean through the 20 & 50 DMAs and all the way to the upper triangle boundary!
Slap, slap! Sober up, there! Silver still must bust through this 1660c area and keep right on marching, no, make that running, toward 1740c, the last high. Up there at 1741c lies the 200 DMA, the goal of all goals right now. Silver above the 200 DMA will panic shorts everywhere, and attract buyers.
Gold also must keep climbing. Made it through $1,210, now let's see it clear $1,225.
I bought some today anyway. I know I ought to wait, but I bought just a little, to wet my toes.
By the way, those large orders keep coming in. Not massive numbers, but massive size. Serious people are spending serious money on silver & gold. Not a lot of them yet -- the realizers, edging out of the way before the storm.
Today Tyson Foods announced they are phasing out human antibiotics given to chickens by 2017. Wow. That's some kind of hurry, ain't it? Y'all know why they load animals down with antibiotics, right? They make 'em fat. Make 'em gain weight fast. They've been doing that since the early 1950s. You may not believe me, but you'll believe the New York Times in this article, http://nyti.ms/1chMzVj
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger