Gold Daily and Silver Weekly Charts - Flight to Safety, the Cup's Rim Is In

Gold spiked higher towards $1200 today on market troubles and a weaker dollar I might add.

It seems like the currency war is going through one of its hot spells.

Silver even managed to chalk up a decent gain, and is forming a little 'bowl' formation of its own on the weekly chart no less.

Gold is now quite technically overbought in the short term.  Let's see if we get a retracement or some other sort of action.  In the short term anything is possible.

I know I am not saying so much this year.  Perhaps that is just because the time for talking, for letting people know what was going on, was last year's business.

If you have listened to what the markets have been saying, if you have seen things with open eyes, then you ought to be mostly set, as best as you can.

And if you did not listen then, and kept running to see what the trolls and apologists were saying, looking for diversion and excitement, why would you listen to anything of substance now?   You will always find an excuse, always do what you have been doing all along, until you cannot.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Banking Troubles Worry Stocks

US equities hits new lows today, but managed to bounce back on some technical dip buying and short covering in the afternoon.

If they are going to put in a bottom, there are going to need some help from Europe where the bank stocks in particular look like they have been run through a threshing machine, several times.

Deutsche Bank is appearing very troubled, and Barclays trading was halted for a time today.

Have a pleasant evening.

Shanghai Gold Exchange Withdrawals For January 2016 Total 225.8 Tonnes

Shanghai Gold Exchange has decided to publish their gold withdrawal figures on a monthly basis rather than weekly.

For January 2016 there were 225.8 tonnes withdrawn from the exchange.

Gold Daily and Silver Weekly Charts - Cup and Handle - How Sweet It Is

“After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting.  Got that?  My sitting tight!

Those who can both be right and sit tight are uncommon. I found it one of the hardest things to learn.”

Jesse Livermore

I had such a feeling that these jokers were going get stuffed on the usual Non-Farm Payrolls precious metals hit.  And I may have had some modest wagers in that direction from this morning.

But for most of us, and for most of my own portfolio, we do not wager against The Bucket Shop and exhaust ourselves trying to play their short term wiggles, dodges and headfakes with their synthetic gold.

We 'get right and sit tight.'  And I am seeing confirmation after confirmation that the fundamentals on the precious metals are solid, to be understated about it perhaps when so many will be going hyperbolic.

There are still difficulties, and things could turn rather ugly on the political fronts.  Who can predict that sort of thing?  But based on the knowable, things are unfolding in a very rational manner for those who can see past the noisome rantings of the financiers and their economic status quo.

One might take measures to get their metals into more appropriate places for 'insurance.'  And that means out of any unallocated accounts, or places presided over by the bullion banks and their associates, where ownership could become a debating point under duress, as in the case of MF Global.

If Nick Laird's analysis of the 'gold float' is correct, then we should start seeing fireworks on the physical front sometime later this year.

I have drawn the beginnings of the 'cup and handle' on the chart. The 'handle' will form on the right, and will take the shape of a retracement from wherever the top of the cup may be.

It will not be an active formation until the retest is successful, the handle is set, and the price of gold breaks back out to new highs.

That is a lot of things that may or may not happen from here.

But for now I will just say, have a pleasant weekend.