Dear Friends,

It looks like the Dow is still taking a beating, down to
7702.48 looks like the close, down about 82 on the day.

Gold, however, has taken an even worse beating, closing in
New York at $312.30.  That's a ten dollar drop from 
yesterday's close.  After trading closes in New York, it
appears to go to an online market of sorts.  It is now
back up around $313.

Even so, the falling Dow has been overwhelmed by the falling
dollar price of gold, and the ratio is up a tad.

My favorite chart-watching maven in JP May, and my favorite
site for chart-related info is http://itsallinthecharts.com/
which you may wish to visit.  Subscribe, too.

It appears to me, based in part on JP's analysis, that an
upward trend in the dollar price of gold has been holding
since January.  I don't think the current price drops down
out of the channel, so a reversal to higher prices should
be anticipated perhaps this week.  Of course, nothing is so
definite about this channel that the price couldn't break
lower, but it would have to come off a bit more to make that
break a clear thing.

In short, now is as good a time as any to unload any stocks
you have and buy gold.  Gold is at a low point in its channel,
and may be persistently higher for some months.

Of course, the Dow is also at a low point, and should bounce
back up a tad fairly soon.

Regards,

Jim
 http://cambist.net/


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