Honest Money Gold and Silver Report: Market Wrap
Week Ending 11/09/07
The following is a brief synopsis of the full 40 page market wrap that can be accessed on the Honest Money Gold & Silver Report Website: Honest Money Gold & Silver Report
Gold had another good week as it forged ahead $26.20 to $834.70, for a 3.24% weekly gain - its highest weekly close in 27 years.
On Thursday it closed higher at $837.50.
Intraday during the week it hit a high of $848.00. Below is gold's daily chart.
There's not much one can say about gold's powerful ascent other to comment on its awesome rise from the bottom left hand corner of the chart to the upper right hand corner: a bullish signature. One is left standing in awe of a once in a lifetime event as it unfolds before us.
SAR & OTHER INDICATORS
When any asset rises this much in a short period of time it is always left exposed to quick and violent sell offs that throw the newest riders off. To glean where this might occur from we have used the SAR indicator that measures parabolic rises and attempts to suggest from whence a correction might ensue.
Presently gold sits at $834.70; and the SAR indicator comes into play at $815.74 - $19 lower or approximately 2.5% from its current price.
This does not mean that a correction from this level will occur 100% guaranteed, or that if one does it will stick to the parameters given. It is but a signpost along the way to be aware of.
Also notice that the ROC (rate of change) indicator is starting to roll over. However, in a powerful bull market such indicators can appear for a day and the very next day's price action can wipe it off the chart.
The CCI index at the bottom of the chart is also flashing overbought readings.
The Hui Index had a slight gain for the week of 2.54 points to close at 441.92. Earlier in the week on Thursday and Wednesday the Hui closed above 447, so Friday's weekly close was not the highest daily close of the week. It was however, the highest weekly close the Hui has yet to make.
The chart above shows the upper Bollinger Band to be at 448, so there is a bit more to the upside if the index is so minded. Likewise, RSI is just being bumped into.
MACD and ROC are both very strong and positive. STO look like they could go either way, however, there is an ever so slight biased to the upside.
A strong looking chart, however, caution is warranted. A chart looks most bullish just before it turns bearish; and on the other hand a chart looks most bearish just before it turns bullish. Such is the nature of the beast.
Below is the weekly chart of the GDX Index. The chart is very strong. Price just made a new all-time high. RSI is just bumping up into the overbought level.
MACD and the histograms are very strong and well into positive territory. The rally has taken place on increasing volume - always a very good sign.
Price is starting to get extended, but still has room to run to the upside if so minded. The ROC is very strong - but is it too strong, as in not sustainable?
Many of the markets appear to be at a crossroads, where they could change direction at any time. Maybe - maybe not. We shall see in due time.
It just seems that too many people are on the same side of the boat or trade. When this takes place my contrarian nature says move to the other side dummy.
When the crowd gets wise, the wise get out. I feel much more comfortable doing the hard trade than the easy trade - but that's just me. Each to his own.
Stop by our website and check out the complete market wrap, which covers most major markets, including stocks, bonds, currencies, commodities, and energy, with the emphasis on the precious metal markets, both physical and stocks.
There is a lot of information on gold and silver, not only from an investment point of view, but also from its position as being the mandated monetary system of our Constitution - Silver and Gold Coins as in Honest Weights and Measures.
On the main homepage are papers and articles by some of the best out there to be had. There are audio and videos on banking, the Constitution, and cutting edge news of serious interest. Many articles are archived, while others are linked.
Live time quotes on gold and silver and precious metal stocks are available, including charts for most world currencies and futures. Links to the World Bank, central banks, international monetary fund, the United Nations, and much more are offered.
There is also a live bulletin board where you can discuss the markets with people from around the world and many other resources too numerous to list.
Our gold stock portfolio with all buy and sell orders is posted for viewing. See which stocks we own, have sold, and bought most recently.
Drop by and check it out. Good luck. Good trading. Good health. And that's a wrap.