The DOW and the Euro are up, but are they?

Wow, what an up move in the DJI yesterday. The big question is "Will there big a big follow through today and tomorrow?" I do not know the answer to that question, nor does anyone else. The market will speak to us in language so strong and loud that the answer will be obvious. However, if you will examine the first graph of the DJI in terms of gold, you will find that gold is doing much better. Gold continues to buy more and more of the DOW which means that gold is retaining purchasing power while the DOW is languishing, even as it seems to rise in price.

In the second graph, you will see that the same is happening to the Euro in terms of the Swiss Franc. The Euro is losing value against the Swiss currency. Thus, we are seeing that the Franc is holding value while the "preferred" substitute for the the dollar: the Euro, is losing. Things must not be as great within the ECM as it may appear from the outside.

Meanwhile in Asia, China, Japan, and the Asian partners are trading among themselves to an extent that exceeds all of the past. This is helping sustain their economies and replace the potential loss of the U. S. consumer. We, consumers of the products of the world seem to be slowing in our demand for products. Perhaps, we are attempting to service our rising debt, avoid foreclosures, and stay out of bankruptcy. Maybe it is a case of all of the above. The latest retail statistics here reveal a slowing of consumer buying.

This morning, we find gold moving above $900 again and silver above $16. We should expect to see silver begin to catch up with the percentage move of gold before long. As always, be warned, the way upward is likely to be rocky with sandy, soft spots along the way. There will be corrections as the prices move to higher plateaus throughout the move.

Gold is presently $906 and Silver $16.18.

There are always interesting, and often, exciting times in markets. Remember that God tells us that it is the LOVE of money, not money that is the root of all sorts of evil. He is wisdom, Himself and knows the heart of man much better than we know ourselves. Thus, we must fear Him and prayerfully seek His guidance through diligent study of His word. There is no other way to live!

Best to each, Doug