SD Friday Wrap: Gold & silver get locked-up while Catalonia defies “authority” and the U.S. economy throws a party…
First, a little bit of freedom for you’re Friday:
This is the moment Catalonia declared independence from Spain today. Parliamentary votes are being read out. Si = yes, No = no. pic.twitter.com/gsakkaSOOA
— WikiLeaks (@wikileaks) October 27, 2017
Back home, let’s start with the good news first:
But don’t believe the S&P 500, the economy is ho-humming along at a super-strong 3.0%:
Gold and silver have been pressured all week, but they were immediately hit when the GDP data release hit the tape:
On Monday, we knew we needed to get into defensive posture and batten down the hatches, and as we now know, the reprieve on Wednesday was just the eye of the storm passing over.
Her’s how it looked in gold:
And in silver:
Looking at the daily in gold, a new problem has emerged:
Lower-lows have formed over sufficient time on the daily. That is bearish and typically indicates that price (or whatever data is on the graph, in this case, price) is going lower.
But the news gets worse:
Gold has put in a confirmed lower-low on the weekly chart. Recall that on a weekly chart, every tick, that is, every “candlestick”, represents one week of price action. On the weekly chart for gold shown above, the close is lower than the close three weeks ago. That is confirmation. If it is just one simple week higher, one lower, etc, then it may not be confirming, but three weeks of separation is what most traders would agree is sufficient for technical analysis.
Though notice the volume on the weekly. The volume shows just how much paper the cartel has to throw at the “market” just to keep the price down. Over the weeks, it is an increasing amount of paper gold that must be launched.
To understand why so much paper is thrown at the gold & silver markets, understand this:
The bullion banking cartel with the blessings of the governments nad the central banks can throw unlimited paper at the market, sufficient to smash price. Individual traders do not have unlimited money. Therefore, as long as the commercial banks can throw as much paper as needed to smash price, at one point, since futures contracts “expire”, if a trader loses enough money, he or she will be forced to sell.
That is the trick. When a bank can throw as much “paper” gold as is needed, they can just throw more and sit back and wait it out until the trader cannot counter with unlimited leverage.
On the silver daily chart, we can see that silver has been smashed below the 100-day moving average:
Whenever the metals are pushed under any of their moving averages, it is not a good sign, especially the 50, 100, or 200.
Silver, however, has not had it so bad on the weekly chart, and the uptrend is still in place:
Actually, on the weekly, silver is quite bullish. Whereas gold put in a lower-low after three weeks in what would be considered bearish, silver has put in a higher-low after four weeks.
higher-lows and higher-high indicate bull markets, and lower-highs and lower-lows indicate bear markets.
Regardless, the GSR moved back up:
Breaking-out through the 50-day moving average to the upside, it now again takes 76 ounces of silver to buy just one single ounce of gold. Said differently, the gold-to-silver ratio is showing that silver is the better buy right now if anybody is “dollar cost averaging” (buying a little bit each month regardless of price) and making their purchase decisions based on a line in the sand of 75.
Palladium is holding it’s own right now but platinum is downright struggling:
Sooner or later platinum needs to catch up to palladium again, but platinum is not having a good run, and if it breaks down even further to put in a bearish lower-low on the daily chart, hopefully it would manage to find support at $900. That is the support line. While it looks like $650 above, that is because the parent graph is palladium, and platinum is a comparative study.
Crude has caught up to copper today:
The last two times that crude has caught up to copper, the price for crude oil fell. But notice the uptrend is still in place, just in time for higher gas prices for the holiday shopping season. Yippie!
The 10-year yield is in a wait-and-see mode:
Two major factors could get the yield moving in a hurry next week. If President Trump is in fact going to name his nomination for Fed Chair, that would be in a matter of days, and if the House of Congress is going to put out their tax proposal, look for the yield on the 10-year to start moving.
On Monday, we also said the dollar had put in an inverse head-and-shoulders pattern and the upside target could be 96:
Many analysts are quick to say the dollar is back. In time we shall see, however, just like with the bond market, if there are problems with either the President’s Fed Chair Nomination or the Tax Plan, the dollar index could get to moving in a hurry.
It is also worth noting hat developments from Catalonia this weekend could cause the dollar to move as well.
But who would have though, “fear” has been successfully smashed back below 10:
Finally, here’s what happens to your stock when your a “tech” company but have a one-page, two-link website like this:
And all of the sudden you add the word “Blockchain” to your name (even though you have nothing to do with blockchain):
– Half Dollar