Silver & Stock Update

 2/1/2026

Gold and silver finally topped with the biggest drop since 1980.  

 After a 31% drop in one day  would expect a rebound, the buy the dip crowd should come in Monday. That would allow to add ZSL, the bear fund. What this really means is that in gold the US dollar is worth 1/5,000 of an ounce of gold and 1/85 of an ounce of silver.  Once Nixon took us off the gold standard, Congress  went nuts with paper money. Lyndon Johnson had the first $100 B budget in the 1960s now it is over three trillion dollars which is three thousand billions if you can imagine that. 

The  HJouston Astrodome  was completed in 1965 at a cost of $35M, I was designed for 50,000 but swelled to 68,000 for a George Strait concert in 2002. Now in San Antonio, the new Spurs basketball arena will seat 15,000 and cost $1.2 billion. That is a 34x increase, pretty much a devaluation of the dollar.  I think that explains the move to gold and silver.

Stocks DOW Industrials

 The action in January looks like a broadening top. Those who got in early,  a while back, are now selling to the FOMO crowd who came later. At times they will buy back to support the market and let them then sell at higher prices. I have drawn red lines at top RSI and bottom PMO show downturns.  we need a deop below the January 20-21 low and then below the November low also see red arrow to really confirm a top. A ration of 9 stocks down to one up would also confirm.

 Democrats won and open state senate seat in the DFW area this week. Democrats will come out for a small election like that to do anything to display their distaste for Trump. Republicans show up for teh big races but not the little ones, and one shot races like this. It is still an indicator of what will happen in November.