Numismatic News

SILVER COILED AND READY TO SPRING
by Roland Watson

Back in the middle of April I wrote an article that suggested a price pattern for silver that has not been publicized much. In an often polarized area of debate, it was a position that was neither bullish nor bearish but rather a suggestion that silver would drop into a channel formation prior to its next price explosion. I quote from the article: Note how after the big drop in April 2004, silver also advanced in a similar fashion to our current moves on a rising trend line until the old highs of $8.50 were nearly taken out in December 2004. However, this trend broke to the downside to begin a channel movement for silver for some months before the true breakout occurred in September 2005. Will our current rising trend line support the price of silver or will we see a temporary breakdown? That previous rising trend line lasted 8 months. This current one has lasted 10 months. Once again, a breaking of the previous high of late February is required to maintain the bullish sequence of higher highs and invalidate that analysis.

Market Update: Secrets to Success
by Dominick

Did you lose money last week while other traders used the market like a blank check? Did you give into the doom and gloom and short the opening Wednesday morning to just watch the market drain the cash out of your account? Did you make the same mistake during Friday's summer feast, just before the market recovered 13 points in 30 minutes? If so, you'll be interested in learning the secrets to our success at TradingtheCharts.com, where the traders are unbiased and price action rules. What do I mean by unbiased? It's a simple concept -- we don't marry long term outlooks or analyze markets based on what we need to see so we can realize profits on our positions. No, we just trust the market to always be right and listen to the setups the charts provide. A biased trader probably saw every rally this week as a must sell. After all, look at all the bad news, from the Bear Sterns debacle to the end of the quarter and the foiled terrorist plot in London. But a bear market would have been down a lot more.

Metals Rally Pushes Higher
by Joe Battaglia - Goldline

Gold is higher this morning, well supported by a stronger euro that has risen to $1.35, and a sharp increase in crude oil to $70.19 a barrel. Dow Jones Wire Service reports that there is solid demand for physical gold along with bargain hunting and short covering all helping gold and silver move into positive territory today, as well as yesterday. The market is giving indications that it has found a bottom and that it is prepared to make a more substantial move to the upside. The Chicago Purchasing Managers Index fell to 60.2 in June from 61.7 in May which indicated a slowing economy. The expectation of the economy cooling may be a factor keeping the Fed on hold for some time. If economic slippage increases the Fed may be forced to lower rates before the year is over. The economy seems to be slowing rather considerably. The government’s estimate of GDP for the 1st quarter of the year rose .7%. That compared with a 2.5% gain in the 4th quarter of last year. These are warning signals for the economy.