Thoughts on Markets

Monday, November 16, 2009

Gold through $1130 Plus - Silver >$18

Here are the miners from Scottrade streaming quotes:
And the currencies from Kitco.com:

Here is the picture on gold. I have noted today's price in purple. Both the RSI and MACD are positive, and today's current price has made a high above the upper trend line of the upward trough which is very positive. Gold has farther to go, and we have seen no correction since this move began near the end of October. Thus, it is a very strong move.
The miners are very positive now with very strong RSI and MACD. Possibly, they are on the move to catch up percentage wise with the metals.
If you decided to buy into DROOY, you were able to buy it at opening for at or just above 4.60. Some of my orders were executed at 4.61 & 4.62. I have attempted to draw a saucer under the prices early late October to early November and then what appears to be the beginning of another saucer from about November 1o on. Looks like we may complete the saucer with further upward move. Patterns do not always fulfill what we expect, but then not much is certain about the future in our eyes. Of course, the Bible tells us what will happen in the end: judgment before the King of kings at the Great White Throne.

Take a look at Gold over the last 24 Hours. What a trading range! The mining stocks are responding, but not to this extent. By the way, the DOW is now up 115 to 10383.
From Reuters.com last night:

China's caution on yuan signals no early move


By Kevin Yao - Analysis

SINGAPORE (Reuters) - Investors betting on a yuan rise early next year will be disappointed as China is likely to keep the currency on a tight leash at least until the middle of 2010 to cement the country's economic recovery.

Annual growth in the world's third-largest economy accelerated to 8.9 percent in the third quarter, rapidly rebounding after hitting a trough of 6.1 percent in the first quarter and putting the government's full-year target of 8 percent within reach.

But comments from top Chinese officials attending a meeting of Asia Pacific Economic Cooperation (APEC) countries in Singapore highlighted their worries over the strength of the recovery, which remains nascent and stimulus-driven. Read it HERE.

President Obama will not meet with success in China. China will change it currency value only when it is in their best interest. Obama could obtain some lip service, but there will be no real change resulting from his visit. By the way, I remember back when Nixon went to China with hat in hand as Obama is doing now. Nixon's visit was a big advantage for American consumers, but a disadvantage for American industry over the decades since.

From the Daily Pfennig today:

"I'm going to tell you this next bit, and you're not going to believe it at first... But stay with it... There was good news in Asia overnight, as the Japanese printed a 3rd QTR GDP report that showed an annualized rate of +4.8%! That was 2.9% higher than the "experts" forecast for Japan! So... Even Japan is joining the other Asian and pan-Asian countries (Australia) in posting strong economic growth!
The Asia-Pacific leaders pledged to keep stimulus measures in place until there's a "durable growth"... Hmmm... Here's hoping that the Asia-Pacific leaders let us know when that happens, for 4.8% annualized growth for Japan, sure seems like "durable growth" to me!  And... In keeping with our hopes that fundamentals return to currencies and commodities... The strong economic data for Japan, did not quash the yen! In fact, the yen has traded stronger VS the dollar overnight!  Speaking of trading stronger VS the dollar overnight... Have you seen the price of Gold? WOW! Gold has set, yet another, all-time record high overnight of $1,133! It has since given back some of that to trade at $1,127... But still... WOW!"
From the Daily Pfennig on a hidden slap at Americans in ObamaCare:
"And then there was this... The other night I was discussing the Health Care stuff, and told the person I was talking to that the stimulus bill, you know the one that was pushed through so fast last winter because we as a country were "near total collapse"? Well, the stimulus bill had hidden in it, part one of the Obama Health Care Plan... Hmmm didn't know that? Well, yes, grasshopper... It's the "death panels" that Sarah Palin coined them... They are called the rationing and enforcement board. And... The President has already funded them with $20.6 Billion of our taxpayer dollars!" 
Here are some of our special stocks, etc.: BULM 0.85; AMNP 0.755; CYRS 0.26; BYDDF 9.37; DOW -120 at 10390; Gold 1131; Silver 18.15.

Exciting markets as usual. Keep your focus on King Jesus and His law for success in life and death. He is the ONLY way for reconciliation with the Father who is in Heaven. That is essential for this temporal life and life hereafter.

Best to each, Doug

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