Everyone and his brother is looking for support at 80 on the dollar index . That just means that it will shoot right through 80 leaving mud on everyones face

Could be. We'll see soon.

I'm on the edge of my seat, for sure.

What does it mean, "technical support at 80?"

I'm on the edge of my seat, for sure.

What does it mean, "technical support at 80?"

The 80 is in reference to the US Dollar Index, if that is what you are asking.

Everyone and his brother is looking for support at 80 on the dollar index . That just means that it will shoot right through 80 leaving mud on everyones face

No, [color="Red"]BLOOD ON EVERYONES FACE! If it breaks 80... it'll go to [color="Red"]60 like a fuckin' meteor!!! [color="Gray"](and this won't even be the bottom!). Then say 'hello' to $1200 - $1600 gold and $80 - $100 silver (on its way to $250!).

No, BLOOD ON EVERYONES FACE! If it breaks 80... it'll go to 60 like a fuckin' meteor!!! (and this won't even be the bottom!). Then say 'hello' to $1200 - $1600 gold and $80 - $100 silver (on its way to $250!).

Hot damn James, I like your optimism.

In the late 70's I bought four 100-ounce silver bars at about $4 per ounce, kept them about a year, then traded them for a tractor from my dad. Soon afterwards, silver shot up to almost $50.00 per ounce, but dad flat refused to take his piece-of-shit tractor back.

http://www.kitco.com/

U.S. dollar index and oil is on the bottom right hand side.

Silver $13.71 at 3:41 AM E.S.T.

What does it mean, "technical support at 80?"

The last time the index got close to 80 was at the end of 2004. It's been trading higher ever since, so that may be why they say it has support at 80.

I'm on the edge of my seat, for sure.

What does it mean, "technical support at 80?"

Kievsky, et al...

[color="Green"]Support and Resistance

Support and resistance represent key junctures where the forces of supply and demand meet. In the financial markets, prices are driven by excessive supply (down) and demand (up). Supply is synonymous with bearish, bears and selling. Demand is synonymous with bullish, bulls and buying. These terms are used interchangeably throughout this and other articles. As demand increases, prices advance and as supply increases, prices decline. When supply and demand are equal, prices move sideways as bulls and bears slug it out for control.

What is Support?

Support is the price level at which demand is thought to be strong enough to prevent the price from declining further. The logic dictates that as the price declines towards support and gets cheaper, buyers become more inclined to buy and sellers become less inclined to sell. By the time the price reaches the support level, it is believed that demand will overcome supply and prevent the price from falling below support.

What is Resistance?

Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. The logic dictates that as the price advances towards resistance, sellers become more inclined to sell and buyers become less inclined to buy. By the time the price reaches the resistance level, it is believed that supply will overcome demand and prevent the price from rising above resistance.

[MORE]

[color="Blue"]StockCharts Chart School

http://stockcharts.com/education/index.html

I'm on the edge of my seat, for sure.

What does it mean, "technical support at 80?"

Good question. I'll try a non-technical explanation. If you're familiar with charts of commodity/stock/currency price movements, you see that certain zones are difficult for the prices to break through -- either on the up side or the down side. The market will try again and again to break through a particular zone -- even over many decades of time -- and be unable to do so. The price zone that blocks a downward move is called "support"] http://www.mrci.com/pdf/dx.pdf [/url]

Notice that the market has tried on four different occasions over the past twenty years to break below 80 -- and has failed each time. This means that there is a lot of "support" at that price -- and that breaking 80 will probably be very difficult. However, each time an attempt is made on a price barrier, that barrier is weakened. It's like a hammer blow against a door. The door is weakened with each blow -- and one day that door will break down and prices will burst through. The fifth attempt on the 80 support zone is about to happen. Will 80 hold?

If it doesn't, there are no other support zones below it, going all the way back to 1971 (35 years)!!! This means there's nothing to stop a drop below 80 -- and the dollar could collapse and the American economy suffer a tremendous blow. If the dollar collapses, gold will probably soar.

Be in gold. It's your protection.

I don't think the central banks of the world will allow the dollar to suffer such a fall. The economies of the rest of the world depend on the American consumer being able to buy their products. If the dollar collapses, our dollars would not have sufficient value to buy many of these foreign goods. Since the jews have transferred virtually all of American industry overseas to China and so on, we would be unable to produce the goods we need here. Result: worldwide depression, making the '30's Great Depression look not very "great" at all.

This will not be permitted to happen, if the banks can prevent it. For that reason, I think the 80 mark will probably hold.

But it will be the 5th blow of the hammer...

We'll know soon.

(The god damned jews. It's always the god damned jews.)

By the way, take a look at this silver chart: http://www.mrci.com/pdf/si.pdf

Notice the resistance zones -- areas where upward price moves have stopped. One is at $15. Notice how it stopped this current bull move cold in May of this year. If silver overcomes the $15 resistance zone (I think it will next year), then the next resistance zone is $25. And after $25, nothing until $40. Then, after that, NOTHING AT ALL. NO LIMIT.

Message of the resistance zones: Buy silver and hold it.

If the dollar collapses, gold will probably soar.

No [color="Red"]IF about it! It will! In precisely inverse proportion.

There is a fundamental inverse relationship between gold and the USD. As a matter of fact the entire dramatic rise in the price of gold in the past few years is due soley to the drop in the value of the dollar exclusively. Their is another fundamental that applies to gold - supply and demand for the metal itself (and you can have both of these dynamics in play at the same time, and that is coming as well), but so far this has not been the case. For now, [color="Red"]the price if gold is all in the dollar.

See an interactive comparison chart of $GOLD / $USD for an example of this dynamic:
http://stockcharts.com/charts/performance/perf.html?$GOLD,$USD

Here's the gold chart: http://www.mrci.com/pdf/gc.pdf

The current bull move in gold was stopped cold by the $700 resistance zone. The next one is at $870. After that:

NOTHING. NO LIMITS.

And $870 isn't that far away. We may hit that in 2007.

Message: Be in gold.

Here's the gold chart: http://www.mrci.com/pdf/gc.pdf

The current bull move in gold was stopped cold by the $700 resistance zone. The next one is at $870. After that:

NOTHING. NO LIMITS.

And $870 isn't that far away. We may hit that in 2007.

Message: Be in gold.

This is a misinterpretation of the dynamic. Looking through the wrong end of the telescope, so to speak. "Gold was stopped cold" not because of its 'supply / demand' fundamental support and resistance technicals. The price of it was 'stopped cold' by the increased value of the dollar!

There was no sell-off (supply and demand) in gold that caused a decline in price... it was the strengthening of the dollar's value, that therefore required less of them to purchase the same amount of gold! Therefore the illusion that 'gold dropped in 'price'. Get it?

If you want to figure out a magicians trick, watch the other hand!!!!