Wowch! Silver got coldcocked today, and gold nearly flattened. Stocks got sucker punched, too. Only the scrofulous dollar escaped.
The US dollar index rose 38 basis points (0.37%0 to 102.16. Here's a chart, which speaketh louder than all my words, http://schrts.co/6gAt7U
In trading, as in war, there are times to tough things out and times to tuck tail and run. Survivors can tell the difference. Reason I say that is the US dollar index chart is either pushing as high as it's going to push, or I'm wrong & it's about to head for 106.
Y'all can see that the Dollar index today pushed into that hazy green line from the left shoulder. If it pushes much further, 102.50 - 103, then it might invalidate that head & shoulders interpretation. If that interpretation is right,though, y'all better hold on and shuck dollars because it will fall at least to 97.5.
Y'all gonna stay in this foxhole or not?
Not much of a surprise that after yesterday's 303 point pole vault, the Dow today fell 112.58 (0.53%) to 21,002.97. Somebody took the Tequila off the trading floor. S&P 500 fell 14.04 (0.59%) to 2,381.92.
Here's the chart for the S&P500, http://schrts.co/vtdPMb
Mark well I am NOT yet calling this an island reversal, but the gap up and today's trading are painting out what MIGHT be an island reversal. If 'tis, S&P500 will trade sideways without filling that gap, then suddenly gap down and plunge.
While y'all are looking, notice how overbought that RSI is and how long it has been overbought.
Oh, mercy. Silver plunged from 1830 to 1770¢ from 1:00 to 2:00 p.m Eastern. Lost 73.8¢ or 4% on Comex, closing at 1770.5¢. Gold dove $17.00 (1.4%) to $1,231.90. Gold plunged the same time silver did, from $1,242 to $1,232.
Don't that make y'all curious. But then, we all know markets are incorruptible, all straight up and fair beyond questioning, no manipulation. But it's an ill wind that blows no good, and today's storm made silver a lot cheaper, and a better buy today than yesterday.
How much damage did today's submersion do? Look at silver, http://schrts.co/o96FnV
Today's fall took silver below 1800¢ resistance and all the way to the red downtrend line from the July high and the uptrend line from the December low. That promises solid support. More than that, I keep seeing that silver is in a rally leg, so that would forbid any bloody correction here. If present support did give, silver would fall back to that neckline, about 1730¢.
Now y'all go look at gold, http://schrts.co/DqI3LA
Gold poked down through its 20 Day Moving Average, but remains above that bowl lip at $1220. More to the point, look at the green uptrend line from December's low. Gold today stopped cold right there. Low came at $1,231.10. I reckon there are plenty of buyers down around $1,232 and lower.
Over 36 years I have observed that most folks won't buy when a market is falling & touches a support or uptrend line, which is the lowest risk place to buy. However, they will enthusiastically buy any long-time rising market, the riskiest place to buy -- witness stocks today.
I promise I won't say anything else, but silver & gold are both better buys today than they were yesterday, and yesterday they were spectacular buys.
I wonder if prayers persist. I've started transcribing Susan's prayer journals. She didn't write in them every day, but often enough for the last ten years. She prayed for our children especially, but also for many others, family and not family and friends.
So I wonder if prayers persist. That is, do we just fling them out and they fly into the ear of God and he hears and they dissipate? What if that's all wrong? After all, God dwells in eternity, not in time. Impossible to understand, but for God all things are known, all events equally seen and known simultaneously. God is not bound in time.
What about our prayers? When Susan prayed for our children, for herself, for me, for others, did it go up and evaporate? Or do our prayers keep on echoing in eternity, still pleading, still interceding, still accomplishing God's will?
Oh, if they do, how much mightier, how much more crucial, are our prayers!
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger