Stock Market Trends Mid-Day USA Today:
Futures for the primary stock composites were posting green across the board prior to opening bell this morning.
They did so yesterday and still managed to find negative territory to close. The Dow Jones Industrial Average, as well as the Nasdaq and the S&P 500, finished the last full trading session in the red once again. The Dow Jones finished at its lowest level since the initial half of January at 12,422.49. The Nasdaq finished lower last session at 2,813.69 and the S&P closed the session lower at 1,304.86. Trend-lines for the primary stock composites in the U.S. are negative for the week. The debt crisis in Europe has been dragging indices lower recently and now, weaker than expected economic reports in the U.S. are adding to the negative weight. Jobless claims, future economic indicators, and manufacturing data all posted last session and were negatively skewed. Worries over the domestic economy rose higher and stocks were pressured lower. Today, as the trading session reached the mid-day mark, the primary stock composites were back in the red. The Dow Jones INdustrial Average, as well as the Nasdaq and S&P 500, were tracking negatively. The European based worries continue to dominate and today, their weight overshadowed the first day of trading for Facebook.

Today’s Dow Jones Average, Nasdaq, S&P 500 Index Trend Mid-Day review: As of the mid-day mark, the primary stock composites in the U.S. were trending through negative territory. The Dow Jones Industrial Average was lower by .13 percent at 12,426.67. The Nasdaq was lower by .33 percent at 2,804.80. The S&P 500 was lower on the day by .17 percent at 1,302.69. Stocks were set for the lower close on the final trading day of this week.

Frank Matto

Stock Market Review Today:
The primary indices in the U.S. once again closed the last session on the negative side of break-even. The Dow Jones Industrial Average, as well as the Nasdaq and the S&P 500, finished red and stocks finished lower for another consecutive session.
The DJIA closed the last full trading session lower by 1.24 percent at 12,442.49. The DJIA has finished the last nine out of ten days in the red. The Nasdaq finished the last full trading session lower by 2.10 percent at 2,813.69 and the S&P 500 finished the last session lower overall by 1.51 percent at 1,304.86. Recently, investors’ worries have centered around the political and financial uncertainty relevant to the eurozone. The U.S. economic recovery process came into question during the last trading session as well. The weaker than expected manufacturing report, paired with the negatively skewed economic indicators report, weighed on investors’ minds and ultimately motivated stock sell-offs. According to the Philadelphia Federal Reserve Bank report, the manufacturing index dropped to a minus 5.8 in May from an 8.5 in April. This rating was much weaker than expected. Also, the Conference Boards Index of Leading Economic Indicators dropped lower by .1 percent last month after gaining .3 percent in March. This weak rating could be a sign of lesser economic trends to come. The market in the U.S. is set for another weekly loss, and now home based domestic worries are adding to the pressures which stem from the European debt crisis. Futures this morning though, were posting green across the board. Prior to opening bell this morning, futures for the DJIA, Nasdaq, and S&P 500 were in positive territory. At this point in the week however, a catalyst which will pull trends out of the red for the week is unlikely to present.

Frank Matto

Gold Price Close Today : 1574.50
Change : 38.30 or 2.49%

Silver Price Close Today : 2799.60
Change : 82.6 cents or 3.04%

Gold Silver Ratio Today : 56.240
Change : -0.300 or -0.53%

Silver Gold Ratio Today : 0.01778
Change : 0.000094 or 0.53%

Platinum Price Close Today : 1449.30
Change : 26.40 or 1.86%

Palladium Price Close Today : 601.65
Change : 12.35 or 2.10%

S&P 500 : 1,304.86
Change : -19.94 or -1.51%

Dow In GOLD$ : $163.36
Change : $ (6.16) or -3.63%

Dow in GOLD oz : 7.903
Change : -0.298 or -3.63%

Dow in SILVER oz : 444.44
Change : -19.26 or -4.15%

Dow Industrial : 12,442.49
Change : -156.06 or -1.24%

US Dollar Index : 81.52
Change : 0.174 or 0.21%

The GOLD PRICE rose 38.30 (up 2.5%) to end at $1,574.50. It left behind a double bottom on Wednesday at $1,527.7 and worked its way up to $1,550. In Europe it danced just under $1,550, then at 8:00 a.m. jumped to $1,557, traded sideways, then gapped up at $1,557 levitated, gapped again ($1,563-$1,566) and shot for $1,580. Closed near the top of the range.

Folks, metals are strong as a garlic milkshake. To preserve that spike bottom for posterity, gold needs to climb above $1,580 tomorrow and confirm its intent. Milestones of success after that are $1,600, then $1,630. The GOLD PRICE must overcome these quickly, and that I expect to see.

The SILVER PRICE has made an upside down head and shoulders reversal, forming the head Wednesday. Before New York opened silver temporized between 2770c and 2738, then about 8:00 followed gold up in the same pattern. Ended the day up 82.6c (3%) at 2799.6c.

2800c will become the new floor for silver. Past three weeks of silver show a cascading blow-off bottom. Today reversed that. Silver will rapidly jump over 2900c to 3000c. Odd to say it because summer is seasonally the metals’ sleepy season, but silver could stand at 3400c by end-June.

Whatever evil spell the Central Banking Wizards had cast over silver and gold was broken today. Enough realizers grasped all at once that a bodacious wave of inflation is inevitable, and ran to buy silver and gold. Now the magic is gone, and the Wizards only look like silly bureaucrats in pointed hats, waving little wands like conductors without a symphony.

I will ice this cake by noting that three days ago silver reached its low percentage for this correction against its 300 day moving average. That often pinpoints a reversal.

Better swap GOLD for SILVER now. Ratio may have topped yesterday. Confirming a reversal in gold and silver, premiums on physical silver and gold are rising rapidly, and that will hurt our realized ratio in a swap. If you plan to swap gold for silver, you’d better do it quickly.

That’s it. Silver and gold might once bend backward again toward their lows, but evidently the lows were posted yesterday. More about that below.

The euro continues to crumble before the US dollar. The Dollar index today rose another 17.4 basis points (0.22%) to end at 81.516. First barrier to further rise appears at 81.78, the January high. Euro lost 0.18% today to close at $1.2692, not far from the January low at $1.2609. Monstrously oversold, so watch out for a sudden rally. The NGM like to snare currency traders that way.

Making good on the promise of that head and shoulders that’s been forming since January, the Dow today sliced through its neckline to lose 156.06 (1.24%) and ended at 12,442.49. (S&P lost 19.94 or 1.51% to 1,304.86. It has lost 100 points in ten days.)

Yesterday the Dow in Gold dollars, which has been forming a diamond, well, really a megaphone, yesterday made a marginal new high at G$169.53 (8.201 oz) and today crumpled to G$163.36 (7.903 oz). Dow in silver ounces plunged from 463.69 oz yesterday to 444.44 oz today. Both have topped. That’s your turn of metals against stocks. They have unlatched themselves from stocks, and from currencies, too.

That silver and gold strength in the face of a blooming dollar and withering euro loudly confirms metals’ strength.

Argentum et aurum comparenda sunt — – Gold and silver must be bought.

- Gold Now
Gold
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© 2012, ———– r. May not be republished in any form, including electronically, without our express permission.

To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold’s primary trend is up, targeting at least $3,130.00; silver’s primary is up targeting 16:1 gold/silver ratio or $195.66; stocks’ primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

WARNING AND DISCLAIMER. Be advised and warned:

Do NOT use these commentaries to trade futures contracts. I don’t intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

NOR do I recommend buying gold and silver on margin or with debt.

What DO I recommend? Physical gold and silver coins and bars in your own hands.

One final warning: NEVER insert a 747 Jumbo Jet up your nose. No, I don’t.

Today’s Stock Market Investing News for May 17, 2012:
Although futures for the primary stock indices in the U.S. were green prior to opening bell this morning, trends had fallen into the red through the initial half of the trading session today.
The Dow Jones Industrial Average, as well as the Nasdaq and the S&P 500, were tracking through negative territory as of the mid-day mark. Stocks remained under pressure as worries persisted relevant to eurozone problems, specifically relating to uncertainty with developments in Greece. Stocks have closed lower for four straight sessions and appear on track to do so again today. The Dow Jones Average, as well as the Nasdaq and the S&P 500, appear positioned to post another weekly loss. The weight of the concerns linked to Greece continue to drag on the market. Many fear that Greece could drop from the eurozone unless the nation is able to solidify its government and work out successful debt resolution action plans. Greek voters will have another opportunity to form a new government on June 17. The fear and uncertainty will continue to affect the global marketplace in the short term. Investors remain worried over potential outcomes and stocks are suffering as a result. As the trading session in the U.S. approached close today, the primary stock composites were tracking in the red.
Initial jobless claims posted today for the week ended May 12 and were weaker than expected. Also skewed negatively was the index of leading indicators which showed that indicators of future economic performance in the U.S. had fallen .1 percent in April.
Today’s Stock Market Index Trends Approaching Close:
As the trading session approached close, all three primary stock composites in the U.S. were negative for the day. The Dow Jones Average was lower by .93 percent at 12,481.20. The Nasdaq was lower by 1.80 percent at 2,821.81 and the S&P 500 was negative for the day by 1.29 percent at 1,307.74.

Frank Matto

Stock Market Investing and News Trends Today May 17, 2012:
Investors are hoping to observe stock composite trends pull out from the depths at which they have been co-mingling recently.
All three primary stock composites closed the last session in the red once again. The Dow Jones Industrial Average closed the last session lower by .26 percent at 12,598.55. The Nasdaq finished the session lower by .68 percent at 2,874.04 and the S&P 500 closed the last session lower by .44 percent at 1,324.80. U.S. stocks closed red once again for the fourth straight session. Although economic news posting in the U.S. has been generally positive, pressures stemming from overseas are weighing index trends down and diminishing investor confidence in the global marketplace overall. The ongoing political and financial uncertainty pertaining to Greece’s government collaborations and the need to avoid debt defaults are causing global market turmoil. The future path of resolution remains unclear at this point and the indices are pressured as a result. The market will remain negatively affected while threats that Greece might drop from the eurozone remain. Today, as the trading session reached the mid-day mark, the primary U.S. stock indices were red once again. The worries continue.

Today’s Dow Jones Industrial Average, Nasdaq, S&P 500 Index Trend Review Mid-Day Today:
As of the halfway point in the trading session today, the primary U.S. stock composites were tracking through negative territory. The Dow Jones Industrial Average was lower at this point by .77 percent at 12,501.37. The Nasdaq was lower by 1.08 percent at 2,842.87 and the S&P 500 was red by .68 percent at 1,315.78.

Frank Matto

Gold and Silver Price Trend Review Today:
Gold and silver contract price trends continue to experience pressure and have dropped lower during the initial half of the current trading week.
Both precious metal contracts closed in the red last session. Gold closed the last session lower by 1.32 percent and posted a floor price at 1536.60 per troy ounce. Silver contract price fell lower by 3.15 percent and posted a floor price at 27.20 per troy ounce. Price trends for both gold and silver have been distinctly negative over the course of the last several weeks. According to one month change analysis, gold price trend-line has dropped lower by approximately 6.23 percent. Silver price trend-line has dropped lower by approximately 12.24 percent according to current one month change review. The U.S. economy continues to show signs of life and the dollar has held relative strength. Fewer investors are feeling the need to diversify with precious metals at this time. As today’s trading session reached the mid-day mark, gold and silver price trends were moving higher.

Today’s Gold price per ounce Silver price per ounce mid-day trend review:
June contract gold price was higher by 2.67 percent at an electronic price of 1577.60 per troy ounce. Silver contract electronic price was higher by 3.47 percent at 28.14 per troy ounce.

Today’s Spot gold price per gram and Spot silver price per ounce mid-day review:
As of the halfway pint in the trading session today, price trends for spot gold and spot silver were moving higher. Spot gold per gram price was higher at 50.66 and spot silver per ounce price was higher at 28.20.

Camillo Zucari