Silver and Gold Prices Today Sort-of/Kind-of Broke Out to the Upside

Gold Price Close Today : 1426.20 Change : 10.30 or 0.7% Silver Price Close
Today : 36.002 Change : 94.2 cents or 2.7% Gold Silver Ratio Today : 39.61
Change : -0.771 or -1.9% Silver Gold Ratio Today : 0.02524 Change : 0.000482 or
1.9% Platinum Price Close Today : 1746.90 Change : 23.30 or 1.4% Palladium Price
Close Today : 747.40 Change : 16.50 or 2.3% S&P 500 : 1,298.38 Change : 19.18 or
1.5% Dow In GOLD$ : $174.46 Change : $ 1.35 or 0.8% Dow in GOLD oz : 8.440
Change : 0.065 or 0.8% Dow in SILVER oz : 334.33 Change : 4.86 or 1.5% Dow
Industrial : 12,036.53 Change : 178.01 or 1.5% US Dollar Index : 75.42 Change :
-0.219 or -0.3% SILVER and GOLD PRICES today sort-of/kind-of broke out to the
upside. Don't get all sweaty, now, they still need to confirm the move with
higher closes, but certainly it's a start. To clarify for y'all the issues,
consider: the deadly double top. A B-wave or upward reaction that's part of an
A-B-C corrective wave, can appear very, very strong. It can make a double top.
That is a fatal cap on any market, followed by loads of down-time. On the other
hand, if it clears that last top, then it has broken out upward, and we just
don't know until (a) it confirms the breakout with a close 2% above it, or (b)
it makes the double top then fails to pierce and breaks down. I am not ashamed
to admit I don't know yet which way 'twill break. The GOLD PRICE closed over its
20 DMA ($1,416.50) on Comex, adding $10.30 to $1,426.20 -- above $1,425
resistance. And the MACD may be turning up. There's a good chance that gold will
clear $1,435 and make another large rally, $1,500, maybe $1,600, but first it
must clear $1,435. However, today probably marked the end of an upleg, so gold
might fiddle sideways a day or two before continuing upward. A close below
$1,405 negates all that upward hopefulness. That silver is relentless. Since
last Wednesday's low about 3360c it has climbed to a high today at 3618c. Comes
gave it another 94.2c today [sic] for a 3600.2c close. Silver's strength has
taken the gold/silver ratio back down near its low. Closing ratio today was
39.614. Even if silver aims to move higher from here, tomorrow it will likely
remain calm or even fall a bit, trying to digest the last days' gains. Rubbing
in what I wrote on Friday about never selling a bull market position -- if you
had looked at silver and gold last week, you'd have bet respectable money they
were headed lower. If so, and you had sold your long-term bull market position,
you'd be keening, wailing, and mourning today. As I said, if you can pick the
primary trend and ride it, that's plenty profitable enough. Don't worry about
catching the little zigs and zags of trading. What a difference perspective
makes! Portfolios and plans it makes or breaks! Behold, the Dow Jones Industrial
Average. Up a monstrous (in its Middle-English sense) 178.01 points or 1.5% to
12,036.53. Wow-O-wow. Sounds peppy, don't it? Until you look at a chart and the
numbers. Dow's recent peak was around 12,400. Today's high roughly reaches a
little less than the common 61.2% correction. And gazing at the graph even one
who cannot ken Picasso grasps at once the INTACT downtrend line from that
February high. Yes, yes, it did touch the 20 day moving average (12,048.75)
today, but didn't close through it. Closed by pennies above the 50 DMA
(12,022.13). Stocks remain locked in a downtrend, paid cheerleaders
notwithstanding. I'd as soon buy stocks now as take a goblet of wine from the
hand of Lucretia Borgia. Fellow mushrooms, what do y'all want to bet that all
the central banks are working together to squash the yen's rise? From 128.79
cents per 100 yen (77.645 yen per dollar) to 123.35 (81.07 yen per dollar).
'Tain't no accidents in currency exchange rates. US DOLLAR INDEX lost another
21.9 basis points (0.28%) today and now trades at 75.42. Clearly the Japanese
earthquake has helped speed the dollar along its journey to the center of the
earth. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. -
Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2010, The
Moneychanger. May not be republished in any form, including electronically,
without our express permission. To avoid confusion, please remember that the
comments above have a very short time horizon. Always invest with the primary
trend. Gold's primary trend is up, targeting at least $3,130.00; silver's
primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend
is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or
US$-denominated assets, primary trend down; real estate in a bubble, primary
trend way down. Whenever I write "Stay out of stocks" readers inevitably ask,
"Do you mean precious metals mining stocks, too?" No, I don't.