Long as the GOLD PRICE Holds $1840 its Mind is Still Set on Higher Things

Gold Price Close Today : 1869.90 Change : (3.80) or -0.2% Silver Price Close
Today : 41.818 Change : (1.202) or -2.8% Gold Silver Ratio Today : 44.72 Change
: 1.161 or 2.7% Silver Gold Ratio Today : 0.02236 Change : -0.000596 or -2.6%
Platinum Price Close Today : 1854.80 Change : -29.40 or -1.6% Palladium Price
Close Today : 752.20 Change : -26.85 or -3.4% S&P 500 : 1,165.24 Change : -8.73
or -0.7% Dow In GOLD$ : $123.15 Change : $ (0.85) or -0.7% Dow in GOLD oz :
5.957 Change : -0.041 or -0.7% Dow in SILVER oz : 266.38 Change : 5.10 or 2.0%
Dow Industrial : 11,139.30 Change : -100.96 or -0.9% US Dollar Index : 75.91
Change : 0.797 or 1.1% Here is one reason I don't trade currencies: I don't like
puking in wastebaskets. No matter how carefully you scope out the market, in the
end all currencies are wholly manipulated, and when any government finds its
currency with its toe in the wringer, it will throw a "Surprise Party." Surprise
parties are often thrown after the close on Fridays, to catch as many incapable
to act as possible. And when they throw a surprise party, you might be trapped,
and watched your carefully planned trade turn into a massive loss that threatens
to take not only all your money but also some of your internal organs. Witness
the Swiss Franc today. Switzerland's economy exports heavily to Europe, but the
Swiss Franc has been (until recent years) far better managed than any other
currency, so all the Eurolanders fleeing the Euro have been swapping Euros for
Swiss Francs, driving the Franc up against the Euro, raising the price of all
Swiss exports, and sending Swiss industry into a non-competitive swoon. Thus the
Swiss National Bank announced today that it would henceforth sell as many francs
as necessary to keep the franc at 1.20 euros. Swiss franc dropped 7% on that
news. That's a puke in the wastebasket fall, which for the owners of futures
contracts on Swiss francs would pretty much clean out their bank accounts and
theirlife expectations for the next couple of centuries. Now let us ponder what
the Swiss did to the rest of the currencies. First the Franken-currency, the
euro. Been warning y'all to watch those gaps, because they're just like
rattlesnakes, they travel in pairs. Friday the euro gapped down below its 50 and
20 day moving averages, traded lower today, then gapped down AGAIN today. Closed
at 1.3995, down a gargantuan 1.4% today. Nor was the sky clear on the other side
of the globe. Japanese yen closed down 0.72% at 128.79c/Y100 (Y77.645/$). Now
has the look of a rounding top that had done rounded, and needs only a close
below 128.73 and the 50 dma (now 127.90) to launch into free-fall. The US DOLLAR
profited largely from the Swiss Franc's demise. Yesterday and Friday the US
dollar index had pushed to the top of the narrow short term range (74.75), and
today simply exploded to 76, slicing clean through resistance at 75.40 that has
imprisoned it since mid July. Dollar has now left far behind its 20 and 50 dmas
(74.27 and 74.52) and nearly reached its 200 dma (76.29). I've been warning
y'all a dollar rally is coming. Dollar needs only close above that 200dma and
then thru the last (July) intraday high at 76.72 to scatter the minions of
Dollar-doubt and rally a long while. Dollar index today closed 75.909, up 120
bps from Friday. STOCKS are now bare tiny points from breaking out downside from
their uptrend line established since 8 August. Against the backdrop of trading
since July, that promises to unfold as a very strong and painful plunge, with
weeping, wailing, and gnashing of teeth. Dow hit a low today at 10,932.53, but
recovered enough to close at 11,139.30, down only 100.96 points (0.9%). S&P500
lost 8.73 (0.74% to close 1,165.24. Mercy, if any of y'all are standing in the
way of this steamroller by virtue of owning stocks, you might ought to sell
them. Stocks must now fall enough to terrorize Ben Bernancubus, which won't be
much farther. The Philadelphia bank stock index, BKX, gapped down the last two
days and is fixin to make a new low. So is the Dow in Gold Dollars, today
closing at G$123.15 (5.957 oz). Once the Bernancubus gets scared, he'll start
pumping out the money till the banks burst. Stocks -- they are the giant suction
hose sucking money out of Main Street and depositing it on Wall Street. Reckon
that makes them the suckers and us the suckees, or is that th'other way round?
The US dollar rally did not hurt the GOLD PRICE as badly as one might expect.
Overnight in Europe it hit $1,920 and dropped all that gain to close today on
Comex at $1,869.90, down $3.80 from Friday's close. Still, that looks like first
half of a key reversal, breaking into new high territory then closing lower.
Needs a lower close tomorrow to confirm that. Forming a floor and support under
gold are the 20 and 50 dmas ($1,811.72 and $1,675.80). Gold's overnight high
sufficed to form a double top with the August high, but time has to make that
clear. Stands to reason gold would have to hit that $1,920 ceiling twice to
break through, and back off a little on the 2nd try. Long as the GOLD PRICE
holds $1840 its mind is still set on higher things. My suspicious mind, which
remembers that the heads of the big central banks or their lackeys all meet once
a month at the Bank for International Settlements in Basel for supper, suspects
that the Swiss National Bank did nothing before informing the rest of its
criminal network of central bankers. Methinks the Bernancubus would welcome such
a move, since it might be calculated to wound gold and momentarily (at least)
boost the dollar. Remember, the time horizon of central bankers and Nice
Government Men is -- five o'clock. They only have to keep the system from
blowing up TODAY. If they reach 5:00 without a blowup, they've succeeded.
Schizophrenic SILVER took a much bigger hit today than gold. The SILVER PRICE
yesterday climbed over 4300c, and remember Friday rose 153.8c. High today was
4323c, but when the Swiss wound their watch, bottom dropped out of silver all
the way to 4150c. Comex closed near the bottom at 4181.8c, down 120.2c. That's
the first half of a key reversal, but don't open a vein just yet. 20 DMA, first
tripwire of a decline, stands at 4086c. 200 dma lies at 3528c. However, the
uptrend from the May low remains intact;, whole, and unbroken. Twill stay that
way as long as the SILVER PRICE floats above 4000c. Watch tomorrow to see if the
SILVER PRICE will post the second half of that key reversal. Watch 4100c as
well. Today's drop scared GOLD and SILVER dealers so much they raced to sell US
90% and the buy side premium dropped to 170c below spot. Never been a better
buy. Also, I have neglected to notice that as SILVER has climbed, US pre-1936
silver dollars have lost their premium, and fallen to about 3% over melt at
retail. Rather than buy those rotten, overpriced silver American Eagles, buy US
silver dollars. They are sticky to the downside, that is, if the bottom drops
out of silver, they tend to stay about the same place, so there's a little less
risk buying them. And I'd rather have silver dollars than silver American Eagles
any day. Something happened last week I can't quite make up my mind to tell
y'all about yet, but it leaves me thinking that the time may be drawing nigh --
or may have arrived -- when you want to trim down all bank deposits to an
absolute minimum and keep unused cash balances in silver or gold. Banking system
is UTTERLY corrupt, and will steal from you before you can say, "Deposit slip."
For them a "deposit slip" happens when they slip up and let you get your money
out of their bank. Listen: I try hard to look on the sunny side and look for the
best outcome, but there just ain't one with banks, any more than there is with
fever blisters. It's about time for y'all to take the money and run, before they
take it from you. Our Bodacious Hoedown was an unqualified success on Saturday.
We had an old time band and a dance caller named Tee Claw with a magnificent
neckbeard, first I've ever seen. Nobody turned up his nose at the food and
everybody danced till their feet like to have fallen off. On the grass. Under
the stars. Thanks to y'all who honored us with your attendance. Argentum et
aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders,
The Moneychanger The-MoneyChanger.com © 2011, 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. Be advised and warned: Do NOT use these commentaries
to trade futures contracts. I don't intend them for that or write them with that
outlook. I write them for long-term investors in physical metals. Take them as
entertainment, but not as a timing service for futures.