I made the mistake this morning of showing my swollen toe to my wife Susan. I casually remarked I probably ought to see a podiatrist some day & forgot about it. That was as stupid as telling your daddy you have a loose tooth.
About 4:00 Susan whisked me into town like I had sliced two arteries "because the podiatrist is going to be closed tomorrow & you don't want to go over the weekend with that." Next thing I knew the podiatrist was shooting up my toe with deadener and whittlin' away like I was an oak stump, the whittlin' was free & she had a hankerin'. "This won't hurt," she said, Right you are, I thought, it ain't your toe.
So y'all are going to get the short and basic commentary tonight.
I bet y'all think I'm a-hangin' my head in shame & red-faced confusion cause stocks jumpt today. I ain't even thought about it, because I don't care a bit what stocks do in dollar terms, only in silver & gold.
Now the S&P made a marginal new high today, but the headlines are touting it like it blew the top off the scoreboard. Lo, S&P500 rose 22.62 (1.08%) to close at 2,121.10 against its 24 April high at 2,117.69, a big 0.16% better! Durned if that don't shut my nat'ral born Tennessee fool mouth.
Dow rose 191.75 (1.06%) to 18,252.24. By the way, I am just small minded enough to point out the Dow didn't confirm the S&P500, since its last high was 2 March at 18,288.63.
And I am cranky and small minded enough to observe that this new S&P500 high was only a closing high, not the intraday high. I can carp with the best of 'em.
But y'all looky here at that Dow in Gold. Based on the end of day gold price, lower than the Comex close, it closed up 0.2% at G$308.01 (14.90 oz). That is way below the 20 & 50 DMAs (15.09 oz & 15.11 oz).
The Dow in silver is a sight to behold! It fell 0.93% today to S$1,351.21 silver dollars (1,045.08), a bare S$21.64 (16.74 oz) from the 200 DMA at S$1,329.57 (1,028.34 oz). Yes, I will crow when the DiS cuts thru that line.
US dollar index firmed up its intentions today by falling another 22 basis points (0.23%) to 93.43. I am the leeeast bit bothered by what might be a falling wedge on the US dollar index chart, but now that it has passed 94 support, it ought to keep falling a long way.
Euro rose 0.55% to $1.1414 -- made it today, as I suspected. I reckon it will keep rising for a while, but it isn't scratchin' off & laying any tracks behind it. Yen actually fell 0.04% to 83.89, being carefully trimmed by the NGM, I suspect.
Gold rose $7.40 (0.61%) to close Comex at $1,225.40. Silver added 24.2 cents (1.41%) to 1744.9c. Both metals have now reached stiff resistance, $1,225 & 1740c. What are the chances they can keep on rising?
On the negative side, both silver & gold today touched their top Bollinger Band (3 standard deviations), which usually occasions a reversal -- BUT not if they widen out the bands. And the bands for gold are at their narrowest since last June. For silver the width is narrow, but not as narrow as it has been in the last two years.
On the plus side, both silver & gold today closed above their 200 day moving averages ($1,220.90 & 1713c). Minus side of that is, it might mark the limit of their upmove. Silver last traded above its 200 DMA in August 2014, gold in February of this year.
More plus: this stepping out three day rise that has taken gold up $42.60 & silver up 115.1 cents is what a rally ought to look like, with sharply rising volume.
Plus plus: Gold/Silver ratio dropped again today, to 70.227, and is well below it 71.47 200 DMA. End of day ratio close was at 69.89! Also the ratio has fallen BENEATH the uptrend line from the April 2011 low. Y'all look for yourselves, http://schrts.co/kh9gOy
Swap gold for silver NOW if you have any left.
Finally, that Gold/US Dollar Index spread has broken out upwards like it's stretching for the moon. Go look: http://schrts.co/lEHI64
Bottom line is writ here: either silver & gold will run out of gas here, tomorrow, or they will bust through & keep rolling. From the way they've boiled the last three days, chance is better than even they aim to rise further. If they move higher briskly tomorrow, y'all ought to buy some.
But what do I know? I'm jes' a nat'ral born durned fool trying to type with his foot propped up on a waste basket & a podiatrist whose toe ain't hurting. I am a mess.
Only a government agency can REALLY run things into the ground. On 14 May 1980 President Jimmy Carter established the Department of Health and Human Services. Since that time health has taken a nosedive, service has gone to pot, and what service you might extort, wheedle, or beg out of the yankee government is sure to be inhuman or inhumane.
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger