Once again, gold failed to built on yesterday's gains. That's twice now, & I am keeping count. Once again, the bear flag upper boundary defeated gold.
US dollar index tangled its pinkies in its 200 DMA (intertwined with the 50) & tippy toed higher, closing just above the 97.10 200 DMA at 97.21, up a mighty 12 points (0.13%). Not enthusiastic or optimistic. The euro barely moved in closing terms, down 0.2% at $1.1012, but during the day it sought to pierce its 200 DMA at $1.1046 and failed wretchedly.
Hard to see how the euro will survive. 'Twas a rotten, unworkable Frankenstein currency to begin with, made no allowance for states that used inflation for huge swaths of their budget, and now Europe is suffering an immigrant invasion. Since the invasion suits the plans of the Insiders who run the politicians like Ferkel of Germany, the politicians won't oppose it while the people are writhing. I have not even mentioned Europe's rotten banks or sovereign debt problem. All this doth not a recipe for currency success make.
Japanese yen, sorry as it in reality is, has been the gainer from this turmoil. It rallied up to 90.05¢/Y100 (US$1=Y110.05) in February, then fell back to the 20 Day moving average, which caught it and threw it back up into the air. Today it gapped up slightly and closed 0.69% higher at 88.77¢. Count on it, this does NOT fit the plans of the Japanese Nice Government Men. They will act.
Like Superman before Kryptonite, like camellias before hard frost, like orange groves in a freeze, stocks hit those upper resistance levels today & wilted. Dow spilled 109.85 points somewhere (0.64%) to end at 16,964.10, beneath the magic 17,000. Lower, lower, lower slipped the S&P500, 22.5 lower (1.12%) to 1,979.26, waving bye-bye to 2,000. Backwards.
Dow in Gold sank again, to 13.44 oz (-0.17%) but not quite through its 20 DMA (13.41). Dow in Gold & Dow in Silver have diverged because of silver's relative weakness (high gold/silver ratio) so right now the Dow in Gold offers us a more accurate picture of the trend of stocks against metals. http://schrts.co/8Sv0tc
Yield on the US treasury 10 year note fell 3.68% to 1.832%, sending the market's needle into "Risk Off" territory again. Oil backed off today as it tried to get through that 8 month downtrend line about $36.50. Closed just under the mark at $36.33, and that was 4.34% lower than yesterday. However, the uptrend from February remains unbroken.
Speaking of Broken, the market hit the trapdoor handle on junk bonds back when June 2015 began. From then to their low so far in mid-February, they lost 14%. They have rallied, as every broken market does from time to time, all the way back up to their breakdown point resistance. Today they dropped away from that resistance, which no coincidentally is near the 200 DMA. If this were a 1930s Tarzan movie, y'all would be hearing the drums beating out of the junk bond jungle, and you would see the safari bearers throwing down their bundles and hotfooting it home through the jungle. Bad juju in junk bond land. See for yourself, http://schrts.co/F3PaHL
Y'all do understand that the bond market is VASTLY larger & more important than the stock market, right?
On Comex gold ebbed $1.10 (0.9%) to $1,262.10. This came after hitting a high at $1,279, higher than yesterday's, and closed near the $1,261 low. http://schrts.co/pI1ZgR
Silver dwindled 23.9¢ (1.53%) to 1538.4¢ Mark also that platinum, which yesterday made a new recovery high close at $1,001.50, dropped back $12.60 (1.3%) to $988.90. Palladium fell $10.70 (1.9%) to $567.20.
Platinum's move up off its January low hit resistance that has stopped every advance since last August, and it stopped this one, too. This six month chart makes all plain, http://schrts.co/Nhmunh Should retreat to $900 at least.
Palladium had gapped up on 1 March and yesterday gapped up again, which signals the death of the enthusiasm that sparked the move. Worse, it moved into new high territory today, then closed lower -- a lot lower by the end of the day. Back to $530 for palladium, do not pass go. Chart's here, http://schrts.co/q930KG
Gold did nothing to break the sullen bonds of gravity today. Failed to break above the top of that bear flag. Closed near the low. Calling for a correction.
Nor could silver climb higher today. Also closed at the bottom of the day's range. MACD is turning down, along with Rate of Change & RSI. Commitments of Traders are screaming correction, as they are for gold. Could reach 1440¢. http://schrts.co/zsmR7J
Time to rub some fur backwards and rile some folks! I wonder why so many people with otherwise sound judgment have been hypnotized by Donald Trump. Oh, I don't mean for the reasons the media is presently bemoaning -- calling him a Nazi. Maybe they're attacking Trump for another reason: they want his supporters to BELIEVE they oppose him, to make him more believable.
What optimism makes folks think that once in power Donald Trump would make good on his present promises? Things, by the way, he hasn't been vocally wild about in the past. If he's such an outsider, how did he make billions of dollars in real estate in New York, of all places? Not by refusing to play ball with Big Money, y'all can be sure.
And since Mr. Trump has specialized in big bankruptcies, what makes y'all think he will keep his word once in Washington? Why, the Potomac might be renamed the "Politician's Lethe" because once they drink those waters, they forget all their promises. Besides, how would Trump dislodge into motion the entrenched federal bureaucracy, not to mention a congress that oozes corruption like salamanders ooze slime?
Does it occur to anyone that Trump may be another False Flag, another Teddy Roosevelt/Bull Moose Party sent to split the vote and get somebody else elected?
Now don't ya'll get mad at me. I've got nobody in the USA to vote for, because I am not a communist.
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger