A bit late, here is our Market Close for Wednesday
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A strong upward move in the DJIA today. Here are our thoughts on that move and on the action in the gold and silver markets.
I’m going senile already……my comments about the PPT were in Pundit’s perspectives (China).
Thanks for your other links, Professor, by the way.
I monitor silver dealers daily, Big Al, and I’m sorry to say I have to disagree with you.
I’m not expecting silver to take off. I’m just buying to average down my cost.
Looking at Dealers inventory, I don’t suppose I should name particular dealers, but a couple of weeks ago, one dealer had many different choices for kilo bars and 100 oz bars, now there are only a few choices. Similarly with rounds, although I do not daily monitor those.
I monitor both US and UK dealers.
Trump’s strength, in my opinion, is that he is a well-informed individual, intelligent and a good speaker without the use of a teleprompter.
I’m not sure, however, I wish to go from one dictatorial President to another of that same nature. I’m also not sure Mr. Trump would stay within supposed constitutional limitations of his power.
Richard, Thanks for pointing out the changes in personality you are beginning to see in the DOW:GOLD ratio. I have also felt since the ratio was in the 40+ area you mentioned that it could eventually go under 1 based on the history of secular market moves. I hadn’t looked at it in a while, but sure hasn’t been the direction it’s been heading the last several years.
Power, you’re welcome. When the ratio dropped like a stone when gold went to 1900 dollars, you eventually always have a counter rally. It’s happened in the past when the ratio went down to one or two. There’s some interesting things now happening in all of these markets. Also interesting is the fact we’re getting to the bottom of the drop in commodities. We’re now heading into the home stretch. Also, the conventional markets are stretched and only a matter of time before the next bear market starts.
The Gold-Dow ratio has been pushed back inside its bullish wedge for now:
http://stockcharts.com/h-sc/ui?s=%24GOLD%3A%24INDU&p=M&yr=20&mn=11&dy=30&id=p13176338440&a=421517493
Maybe we’ll get close we need for the month.
I don’t expect to be alive, when the Dow/gold ratio drops into a low range, but have told my son and heir to leave precious metals in the safes (unless he has an emergency) and sell when the ratio hits 2.
CFS; great comment. Like you, my kids may be the ones that benefit.
Are you OK CFS? Its not that far off.
I tried to leave the US but stage IV melanoma forced me back. There’s currently no real effective treatment (interferon , 3 injection per week has about 15% effectiveness) But there’s great research going on at Stanford and in the UK. If I can make it 3 more years there’s a good chance I may be able to get into an experimental program, which might be effective.
You might just be in luck. What we have been hearing about cancer research advances is incredible and if you are determined and keep positive odds are good there will be answers soon. Medicine seems to advance the way computers were developing at one point. I don’t know that its actually an exponential growth curve but it sure is explosive. Anyway, hang in there man.
I’m sorry to hear that CFS, but wish you all the best and with some of the advances in technology…you never know….
Positive vibrations heading your way —>
I finally agree with Doc 1-1 DOW / GOLD RATIO……….
That’s okay, Bigbill; it was years before my wife realized I was usually correct about most things.
hilarious.
CFS don’t worry you wont need to wait that long I think for this to occur 🙂
Looks to me that Asia has stabilized:
Index Country Change % Change Level Last Update EDT
Australia ASX All Ordinaries Australia +71.20 +1.37% 5,250.10 11:33pm ET
Shanghai SE Composite Index China +45.28 +1.55% 2,972.57 11:37pm ET
Hang Seng Hong Kong +531.36 +2.52% 21,611.75 11:37pm ET
Mumbai Sensex India +422.37 +1.64% 26,137.03 11:39pm ET
Nikkei 225 Japan +334.32 +1.82% 18,711.15 11:34pm ET
Taiwan TSEC 50 Index Taiwan +106.40 +1.38% 7,821.99 11:33pm ET
Doc,
Excellent comments about the Dow/Gold ratio chart! Probably the best and most informative I’ve heard about the asset to paper trade and the significance of the chart and how it relates to both. It’s the paradigm shift shown on the chart.
You Sir, are a stud ! Much gratitude.
Big Al, You might be interested in this discussion about Trump, after the commercial.
https://soundcloud.com/glennbeck/recallgrovercom-82615
On a completely different topic, I was surprised I was the only person to apologize about the Middle East postings.
I find it difficult not to expose Man’s inhumanity to Man., ever since I watched a Christian being beheaded. I have never called any person writing on your blog, however, an insulting name; whereas others have.
“Silver has been the target of the same old manipulators as usual. So be very careful in this market.” —Martin Armstrong in 2010
The guy attacks people who say the same thing today.
He doesn’t say short term manipulations don’t exist, he says that they don’t make the trend
I realize that but I don’t think he would make the above comment today. If you were following him in his prison days, I think you’d agree that he’s changed.
We know that he has changed, Mathew!
The Dow has a long way to fall but it caught a bid right on a Fibonacci fan line for now:
http://stockcharts.com/h-sc/ui?s=%24INDU&p=M&st=1981-04-08&en=today&id=p63212942536&a=422002372
The HUI is likely going lower:
http://stockcharts.com/h-sc/ui?s=$HUI&p=D&yr=1&mn=9&dy=0&id=p11171210094&a=364007429&listNum=1
Please, please, please…. could you feature MORE commentaries just after market close!
goldseekmint.com……Is currently offline…..Anybody know why ?
Al, I am sorry that someone felt it necessary to mock your silver investment. I don’t know why anyone would feel a need to disparage another person for an investment choice. Who cares what someone wants to invest in anyway. Like you, I am holding silver and gold for insurance reasons and as another diversified basket for my money. Love the show and I get great ideas for investing from you. Thanks
Thanks pardu,
I happen to agree with you.
Big Al
Interesting agreement between New Gold Teck and Goldcorp over El Morro project in Chile.
http://www.juniorminingnetwork.com/junior-miner-news/press-releases/530-tsx/g/10917-goldcorp-acquires-new-gold-s-30-interest-in-the-el-morro-project-in-chile-creates-50-50-joint-venture-with-teck-s-relincho-project.html#.Vd8dXCVViko
After being hit, some of the bio-stocks are coming out of oversold conditions:
e.g.
http://stockcharts.com/h-sc/ui?s=SBIO
Likewise in consumer staples:
e.g.
http://stockcharts.com/h-sc/ui?s=PSL
There appears to be short covering in physical silver, going on in London.
(Or it may be actual shortage in physical silver itself.)
Great! I was wondering if we had a wrap today.
Looking at volume data, as I mentioned on Pundit’s Perspectives (Trump) the PPT got involved in S&P stocks only at about 10:30 a.m. today. I could not spot anything on NASDAQ futures. That surprised me.