Oct 7, 2010
1. What is the Theme Of The Week?
2. It is: "You Have Not Missed Anything".
3. The game of Gold Tag rolls on, and last night the $1365 marker stepped forward for its turn in the game.
4. Make sure you view the analysis I did last night on the Gold and Gold Stocks markets on the site.
5. Silver didn't want to be left out of the game, and ran to 23.50. In two months, gold has moved 17% higher from the lows at 1156, silver has moved 25% higher, the GDX 23% higher, and the GDXJ 40% higher.
6. Winner? Gold Juniors. Loser in the race? Gold Bullion. Yet the statement from most investors, is "gold is moving but silver is not, gold stocks are not". An interesting but totally wrong statement.
7. Much more interesting, is the fact that I view the GDX as sitting, today, where bullion was at the start of the move above 1033 after completing the head and shoulders.
8. Here are the 5 five bull factors for the gold bull market, the five liquidity flows factors in play now: a. The H&S bull continuation pattern (almost finished). b. Comex floor traders and speculators shorting gold to play top caller, then bailing at losses, and switching to the longside. c. Central bank buying. d. A small portion of the public entering the market. e. The gold community back on the buy from 1240, and much more now.
9. Of those factors, all that really matters is central bank buying, in terms of the big picture. QE is being put on the backburner along with the other failed central bank tools, and gold revaluation is on the front burner, exactly as I predicted would happen many years ago, because this is the policy of design in place in central bank planning rooms, and has been for many years. It has been there for many, many, many decades, for situations like the current crisis. I didn't predict anything. I responded to central bank pre-set policy, pre-set liquidity flows.
10. The theme of the week is "You have not missed anything", yes, but I would caution you that it could become "you HAVE missed EVERYTHING" if you analyse the GDX/gold stocks group the same way that the top gurus and their flocks of market losers analysed the bullion market at 1033.
11. The target of the h&s pattern on bullion is about $1380. We are at 1360. We've achieved about 93% of the targeted move, although price tends to often move well beyond the minimum target projections when major size chart patterns are in play, like this one in play now in gold.
12. On the GDX, while the pattern isn't as picture-perfect as the one on bullion, and in fact it is best described as "huge but loose", the fact is that about 1% of the projected move to GDX $97 has been achieved.
13. Hello? Anyone listening? The gold stocks move is not over. It's just starting. What you are watching in bullion is nice to see for bullion inner and outer core positions, as well as trading positions.
14. But the move in bullion is EXPONENTIALLY more important in terms of what that move MEANS for gold stocks.
15. Trillions of dollars imploded in the OTC derivatives crisis, and tens of trillions more, and arguably hundreds of trillions more were hidden in the greatest-size fraud accounting in the history of the world. It's not fraud, because the govt legalized fraud accounting for the OTC derivative world.
16. That implosion destroyed the world's financial system. The system didn't recover. It's bankrupt but the fraud accounting keeps it alive, and the system operates from a state of bankruptcy, just as many businesses do.
17. There is substantial lag time for items other than gold bullion to recover and track bullion higher. Demanding that a bulletin board gold speculation explorer that diluted itself 4 times over act like bullion does in the greatest crisis of all time, is madness.
18. Patience. Patience. Patience.
19. The theme is "you haven't missed anything" and the action to take is buy gold stocks so you GET EVERYTHING.
20. There is absolutely nothing wrong with buying gold here provided you do so on weakness with your pgen. But be realistic. It's much easier to be a master of a greater portion of the price grid for the GDX at $58 than it is for bullion at $1350.
21. Gold stocks are where the monster money is.
22. Jim "Mr. Big" Sinclair believes gold stocks will outperform bullion by a factor of five to one. Hello? Anyone home? I don't know what the exact number will be, but it could be even higher than his five to one prediction, much higher, for intermediate periods of time, given the lag time created by the OTCD implosion.
23. So you still have 2 more days to before it's report card time. There are many gold stocks you can run foundational pgens to zero on, and superb range pgens, rather than basically playing way too big to try and TRADE bullion with too little capital to manage the price grid.
24. The move from 1045 in bullion to 1250 was actually a bigger move than the current one of 17%, coming in at about 19%.
25. Don't make yourself blue in the face now, chasing bullion higher, especially if you FAILED to buy EVERY SINGLE CORRECTION IN THE WHOLE BULL MARKET. You will be destroyed by the banksters when they finishing yawning and smoke the market to the point you beg for an end to the pain.
26. Why engage in the crazed action, what there is a multitude of gold stocks that you can handle with professionalism in your market actions, and the upside reward is perhaps FIVE times bigger?
27. Hello? Anyone Listening?
28. Most out there in gold land are not listening.
29. Most out there failed totally to buy even one correction in the bull market. "I bought zero weakness in gold in the past ten years, and actually sold into most of those corrections, one after another, at huge losses, but I'm about to make ten billion percent in bullion now, I know it because I feel extra-good chasing price, and this time is different, Oh Ya!" - Interesting analysis of the gold market from Joe Blow Mentally Retarded Gold Investor, Oct 7, 2010. What's going to really be interesting, is the size of Joe Blow's losses on the next takedown.
30. I'm a seller of bullion at massive profits, and a buyer of more individual gold stocks on current weakness in those situations. Guess who is going to WIN?
31. Answer:
32. ME.
See you on Gold Stocks Grid. On the buy, and on the profit-booking bullion grid. So, I'm selling bullion, that has completed 93% of its targeted move, to buy gold stocks, that have completed 1% of their completed move, gold stocks that could actually rise while bullion falls. I'm locking in profits on bullion positions I bought hundreds and hundreds of dollars lower, to get even MORE upside while buying weakness to manage risk. Sounds good right? Soon you'll see just how good it is! But why watch when you can do it!
Make sure you check out the new 20 cent gold stock GoldLion has just STARTED to run a pgen on over at Graceland Juniors...
Thanks!
Thank-you