What's That Hitting The Fan?

Weak Job Report Fuels Recession Fears
http://biz.yahoo.com/ap/070907/economy.html?.v=21

Commerce Secretary Carlos Gutierrez, in an interview with The Associated Press on Friday, said there was a "low likelihood" of a recession and that the "most likely scenario is that we will get through this dip and we will continue to see growth."

Yeah, and there really IS a Santa Clause.

Oh Momma, NEGATIVE 4000 jobs created in August...and that includes all the phantom jobs the government creates each month. Oh the humanity! And June and July job creation was revised DOWN a total of 81,ooo. PATHETIC!

Strike Three for the US Dollar as it tests the 80 line for a third time since late July, and closes below it. Da shit will now hit da fan. [Hmmm, well it should...]

Gold blasts through resistance at 688 and asserts itself as The Truthsayer. Did you see that Carlos, Gold sez you are a liar. Not that it needs to be pointed out, you work for the US Government...And if ever there was a lair of liars on this planet, the US Government is tops in the BS Department.

Speculators claim that the Fed will DEFINITELY cut the Fed Funds Rate. They'll probably try and corral Gold first...unsuccessfully. The table for Gold to reach new all-time highs has been set. Just don't expect it to hit news highs overnight.

Silver, though strong, continues to languish in Gold's shadow at this time. Silver has yet to even breakout as Gold has. As a matter of fact, the last time Gold closed above 700 [714 on May 11, 2006], Silver was at 14.34. Silver has A LOT of catching up to do. Silver should be about 14% higher here, if all things were equal. It would not surprise me, if Gold were to retrace this breakout, to see profits in Gold shuffled into Silver during the retrace. Silver remains a superior value at these prices in relation to ANY asset. Back up the truck!

Near term Gold support is now at 688.

Near term Silver support in now at 12.08

Please click on the charts above to enlarge.