Markets are building turnaround momentum. Trump Honeymoon may be over, and it looks like Obama is taking one last shot at starting a war with Russia before he leaves office.
Never forget that evil is also stupid.
US Dollar index fell a meaty 53 basis points to land below 103 at 102.71. What yesterday looked like a possible bull pennant with a breakout upside widened out today and nearabout fell out of the pennant. Cliffhanger for the dollar index, but looking at the euro & the yen, the dollar index' future don't look bright. Here's the dollar index, http://schrts.co/OkJ5UT
Euro rose 0.73% today to $1.0491. Chart's here http://schrts.co/OkJ5UT ready to break through the downtrend line and the 20 day moving average.
Yen rose 0.4% to 85.80. Lo, the chart showeth a real breakout through the downtrend line. MACD & RSI also point up for both currencies. Yen chart may be found here, http://schrts.co/UuqBFa
Now to wish ill luck on anyone, notwithstanding my standing revulsion toward and detestation of all fiat currencies, but if the Dollar Index intends to fall, that will greatly boost gold. They are, after all, competitors.
Stocks got bad news from the Land of the Rising Sun where Toshiba was downgraded by Moody's and S&P. Shares dropped 17% & took the Nikkei with them. Probably Obama's saber rattling didn't help either. Markets hate war & uncertainty.
Dow tried to rally, but its resolve was drained by midday. Lost 13.9 (0.7%) for a 19,819.78 close. S&P500 lost 0.66 (0.3%) and closed 2,249.26. Both are following through on yesterday's breakdown through the uptrend line. Both are perched above their 20 day moving averages, and the twig they're sittin' on is about to snap.
You'll get a clearer picture of that accelerating turnaround momentum if you'll look at the Dow in Gold Chart, http://schrts.co/sBnTRC or the Dow in Silver, http://schrts.co/TNOJpa
After striking vertical rallies both appear to have run out of jet fuel, and have only succeeded in placing double tops over the market. Both have turned sharply down lately.
Gold today got tired of other markets calling it "Skinny" & kicking sand in its face and busted through $1,140 and ran all the way to $1,156.40, up $16.60 or 1.5%. Silver wasn't quite as strong, up only 17.5¢ (1.1%) to 1616.3¢.
Before I talk more, another tidbit of momentum turnaround. Financial stocks, a.k.a. the Too Big to Jail banks, have been on a tear, rising more than most other sectors, on anticipation Trump would remove some of the regulations preventing them from coming into your home in person & picking your pocket and knocking out yoiur gold teeth. Today the BKX bank stock index fell 1.06% to 91.35 & smashed through its 20 DMA, first tripwire of a plunge. Chart, http://schrts.co/6qzXmF
I watch the Gold/BKX spread to track the ebb & flow of confidence between financial markets & gold. Chart's here, http://schrts.co/K2RduV
In the first half of 2016 Gold/BKX rose as gold gained value against financial stocks, then went sideways, and finally in November was Trumped. Mark, dear readers, that it hit the bottom channel line and has turned up, yea, gapped up, and poked through the 20 DMA. Note also the MACD & RSI both point skyward.
Back to silver: Chart's right here,http://schrts.co/o96FnV
Y'all can see that unfolding upside-down head & shoulders reversal. MACD is about to turn up & RSI already has. Volume is rising with price. Best news today was that silver closed over 1600¢. This is sterling (Whoops! Pun alert!) but silver's test comes at 1725¢ resistance, which is also the neckline of that suspected head and shoulders. Unless silver can bust clean through 1725¢, there remains a long drawn out right shoulder to complete. Still, we are making progress.
LO, the gold chart, http://schrts.co/AW2KFe
Suddenly gold has a lot of weight on its side. It cleared the 20 DMA with today's close, after breaking through the downtrend line yesterday. Lip of that bowl formation is about $1,200, analogous to silver's 1725¢ resistance. Gold might take another three weeks to finish drawing that bowl.
But it appears, for now, on the evidence of the day, that gold's lowest price is past.
Tonight at 8 p.m. Central time Jason Matyas, producer of the Beyond Off Grid documentary, will be interviewing me over the internet, live (I only look dead sometimes). Unfortunately, not everyone will be able to watch because the live interview and Q&A is limited to only 50 supporters & film customers. (The reason lurks in my slow internet out in the country, & the limited video conferencing that affords.) So if you have been a supporter of the film or have purchased it online or in DVD, you can join us tonight. (Yes, the interview will be available later for all film supporters & customers). Here's a link to the site, http://bit.ly/2hApoOJ
No, I won't be talking about silver & gold, but about community, modernity, and the search for a reasonable, peaceful, & spiritual life, preferably in the country.
Join us if you can.
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger