Although warnings of raising the discount rate from Stanley Fisher & Janet Yellen were hogwash from the beginning, since the Fed never makes any waves in election years, today slammed the door on any rate rise, positively, & caught the central bankers' tails in the door, to boot.
Mercy, that US dollar index! Y'all remember I warned Friday it must hold 95.60 or swim like an anvil in Chesapeake Bay? Today somebody threw it over board, down an gargantuan 102 basis points (1.07%) to 94.82. Chart's here, but pull your wastebasket close before you hazard a look at it, http://schrts.co/OkJ5UT
Dollar index has now lost everything it had gained since the central banking criminals began talking it up on 26 August. Their gassy promises lasted exactly ten days before dissipating. Wow. Both the world and I are impressed by their almighty power.
Yen & Euro are merely the pale reflections of the US dollar, so when it tanks they soar. Even that didn't help the euro too much. It rose 0.57% to $1.1253 while the yen rose 1.685 to 97.99. Big story in all this remains THE DOLLAR CONTINUES WEAK IN THE FACE OF LYING CENTRAL BANKERS' PROPAGANDA. Their lies aren't working any longer.
A bad report from the Institute for Supply Management's service sector index, weakest since 2010, precipitated the dollar's demise. No rate rise in September.
Stocks were not in the Big Top today. Dow added 46.16 (0.25%) to 18,538.12 & the S&P500 upped 6.5 (0.3%) to 2,186.48. Yes, yes, they managed to rise above their 20 day moving average, but remain locked in the trading range that has imprisoned them since mid-July. No change.
Dow in gold fell 1.77% today to 13.69 oz while the Dow in silver plunged 3.6% to 920.55 oz. Dow in gold chart is here, http://schrts.co/KfbQmg Dow in silver is right here, http://schrts.co/ohwLZP
No question their correction has ended, they are punching through those moving averages, and lower prices are in store for stocks, in gold and silver terms. Listen, listen: SWAP STOCKS FOR SILVER & GOLD.
West Texas Intermediate Crude has well and truly turned up after a false breakdown. Today rose 0.88% to $44.83. Behold, the chart, with today's strong rise on high volume, http://schrts.co/KvfGnd
All the action was in silver & gold today, not counting the US dollar index' nose dive. Gold soared 2.1% or $27.30, smashing two resistance levels and closing Comex at $1,349.40. But if gold left us speechless, silver left us breathless, up 4% or 77.3¢ go 2004.9¢
Whoa! No doubt now that silver & gold have now completed their correction, completely.
Gold smashed its way through $1,325 and $1,335 like pushing through a bead curtain, and ran to $1,357.20. Yes, it backed down to close at $1,349.40, but so what? Held on to most of the gain.
What are we looking at now? Gold leapt through its 20 & 50 DMAs & near about to the downtrend line from the last two tops. Look at this chart, y'all, http://schrts.co/vouqgc MACD, RSI, and Rate of Change have all turned up & volume was massive today. Just can't find any nits to pick off this chart. Once it breaks through $1,360, the downtrend line, it will punch through $1,378 and run for $1,400 with a minimum target of $1,450.
Lo, silver and the silver chart, http://schrts.co/9hm3fB
Yea, truly, silver's chart looks even stronger than gold's. Closed right on the downtrend line from the Juyl & August highs. Busted clean through the 20 & 50 DMAs. RSI, MACD, & Rate of Change are all positive and volume the last two days has been rising with price.
What in the world do y'all want, an engraved invitation? Buy the stuff!
Silver seems destined to poke through that last high at 2122, which leads me to expect a target at 2300¢, more if silver feels frisky.
Wait, wait, I ain't finished yet. The Gold/Silver ratio deserves on hard look, http://schrts.co/kh9gOy
It has Niagared from the August top, in a gappy move punching through the 20 & 50 DMAs, and today -- look at that! -- punched through the bottom line of the last trading channel! Didn't close there, but not for want of trying.
Platinum and palladium added their voices to the chorus. Platinum rose 3.% to $1,100 and Palladium rose 4% to $701.20.
This is it, friends, all the confirmation a reasonable person could ask to prove that the correction has ended.
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger