Sorry About That
I apologize for the site being down for a few minutes this morning. We just needed to adjust a few settings on the servers and now we're good to go.
I've lost some time in the process so this will have to be a quick update. First, silver is finally breaking through 41.45. I have a last of 41.63. IF it can hold this position through the close, it will set the stage for a run to my initial target of 42.25.
Gold continues to rocket higher. It will have to take a breather at some point and I still think that it will happen somewhere in the neighborhood of 1680.
I've given you Trader Dan's weekly chart again because I think it is very important. Again, note the confluence of the red and blue trendlines at about the 1680 mark. I fully expect gold to pause once it hits those lines. Under "normal" circumstances, it would. However, the action today and the rest of this week must be watched very closely for if gold does not stop at 1680 and, instead, charges higher through 1700 and beyond, we will have a runaway train on our hands.
Lastly, just a few thoughts on the whole, US downgrade issue. If you're holding your breath, waiting for an S&P or Moodys downgrade, you're going to be very disappointed. You must understand that much of the entire U.S. financial system is predicated upon U.S. debt being rated AAA. Think for a moment about just how many pension funds, insurance companies, endowments, foundations, banks and mutual funds are limited, by charter, to only owning AAA-rated debt. If the U.S. were to suddenly be rated AA or even AA+, the amount of treasury selling that would ensue would utterly paralyze The Great Ponzi. Simply put, there is no way that a U.S.-based ratings agency will ever be allowed to downgrade U.S. debt. Period. The ratings agencies will go as far as they can without actually downgrading. You saw it last night with Moodys. "AAA with a negative outlook" is as far as they will ever be allowed to go.
That's it for now. Keep a very close eye on 1675-1680 in gold. The next three days are going to be very, very interesting. TF