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Jan
18, 2011
1. "...Some
governments will topple...."
-Jim Rogers, referring to the effects of coming rising food
prices. Jan 14, 2011.
2. Some
penny stock investors have written to me, laughing at my
prediction of coming bread lines. Jim
Rogers, the greatest food commodity trader in the history of
the world, doesn't seem to find it very funny.
3. I
was alone in the world, arguing
that the main reason Lehman had to be turfed... was
because of rising rice prices. More
than 2 billion Asians were on the verge of not just rioting,
but engaging in revolution, if prices had continued higher
and into a parabolic
rise. Turfing
Lehman effectively marked to market pricing of minus 90%,
not model of par, trillions in OTC Derivatives debt. That
action killed the rate of rise of price of the world's most
important food, rice, against paper money. As a
side effect, it killed the paper money price rate of rise of
everything else, too.
4. It
killed the rate of rise. Not the trend. Rice,
not Gold, is the most important chart in the world.
5. Here's
the Rice
Chart. Watch
the rice chart like your life depends on it. Why? Because
it does. You
don't need to trade rice, but you need to watch it
regularly. The "my
penny stocks to the moon while a hundred million Asians
starve to death "
fantasy went down in minus 90% price quote flames in Round
One.
6. In
Round Two, if rice rises to & thru the highs, team
starvation will make a real appearance in Asia.
7. In
Round Three, Team Rice
passes the starvation baton to Team Wheat,
and the only question is: Are
YOU prepared?
8. Here's
the Wheat
Chart. I
am locked and loaded in the wheat market. Measure
your wealth in number of bushels, not price per
bushel. Price is the tool to get more
bushels. Price
is the wealth building mechanism, not wealth itself. Do
YOU understand? The
sideways price action in wheat dwarfs the sideways action in
gold, and also has a 2/3 chance of an upside breakout, as
gold does. Or should I say, a 2/3 chance
of.... an
upside rocket blast.
9. Here's
the NYSE-traded Corn
ETF. Note
the massive volume I've circled as price blasts higher,
confirming price. You
want to be a buyer of food on all weakness, and use profits
to buy more ounces of gold. Period.
10. Here's
the GDX
Chart. Look
at Friday's monster red volume bar. There was
panic buying of US dollar currency on Friday, and panic
selling of "gold stock currency". A
massive, and disastrous, hand off of stock just occurred,
from the gold community to the banksters. What a
horror.
11. Here's
what could turn out to be: Chart
Of The Year! It's
Gold against gold stocks via the SGOL fund and GDX. It's
a unique 60 minute chart that runs back 6 months. You
can see the huge outperformance of gold against gold
stocks. I would suggest gold stocks are about to
blast off against bullion, first in the very short term, and
then in the very long term. Use
this chart to book consistently profit on GDX and plough a
portion of those profits into more ounces of gold bullion
wealth.
12. Be
a Gold Ruler, not a beat up toilet paper bug, in 2011!
13. This Dow
to Bullion Chart shows
the mighty Dow beginning to stir in gold currency.
14. Now,
check out the this one on GDX
to Dow.Here's
how I see the situation. What I see is bullion
consolidating against the dollar. I see gold
stocks as a short term buy and long term super-buy against
both Gold and Dow, proven if bullion rises towards
$1700. You can't wait for $1700 to buy gold
stocks, or even $1430. That will be far too late.
15. GDX
looks set to rally against the Dow, which itself looks set
to rally against bullion. GDX may be gearing up
for some sort of "supermove" upside.
16. Did
you buy any gold stock on Friday? Or are you in
the financial outhouse along with the rest of team
correction, clutching your role of "protective" US
Dollar toilet paper? There is no protection in
there. Come back into the light. The
Golden Light.
17. The
OTC derivatives nightmare was the main cause of the crisis,
and remains the main driver of
the crisis. Still, most
want to focus on everything but OTC derivatives, so they
feel good all the time.
18. Marking
to model has not solved anything. It's simply
changed the story from crash to fade
away.The fading away refers not to
the crisis, but to good
times. Good
times are gone for decades,
not just years, because of OTC derivatives.
19. You
need a different emotional mindset to manage the fade away
theme. The crash mindset is a failed mindset,
going forwards. Crash vs Fade is like the street
fighter champ who now finds he has cancer. It
takes difference tactics patience to battle terminal
illness. Stronger tactics. The Chinese Water
Torture destruction of the financial system requires you to
"reach down inside" to gain a level of patience
and intestinal fortitude you didn't know you had, but do.
20. The
gold bears population, aka "Team Terrified", has
grown like a weed, rabbit or
lemming population,over the past two
weeks. Most are claiming they are on "Team
Correction", not Team Terrified, while liquidating
madly. Be careful of demanding that a
chart shape be
a chart pattern.
21. What
did I say to all of you as gold and gold stock fell hard
against the dollar last week, what did I say right into the
lows? Here's what I said: "I'm
not on team correction. I'm on team 'Get
Richer'." How do you
get richer? You get richer by ignoring the paper
money valuations except as a tool to
get more ounces, because more ounces defines you
as richer,and
does so because OTC derivatives have made paper money
valuation of your gold an inaccurate measurement of your
wealth now. Think...Ounces!
22. I
also have been telling you for
quite a while that gold has a
2/3 chance of going $100 higher,
not lower, out of the current $1315-$1430 box. Nothing
has changed. Gold has a
2/3 chance of being in a consolidation, and the current
maniacal obsession with predicting how low gold is going
next against paper money sounds to me like the making, and
perhaps marking,
of a bottom, not a top.
23. At
minimum, it enforces the 2/3 odds of a breakout higher as:
realistic. My message
to the Gold top callers is: You totally failed at
$680, $800, $860, $905, $1044, and $1156. You
drove the Gold Community out of their holdings at each of
those lows. Maybe
you're much smarter now. I say: No. I
bought each of those lows, almost alone, and beat on my
subscribers, and the general gold community, to do the same,
just as I'm buying this one.
24. Because
the range is approx. $100 "thick" ($1315-$1430),
the move above or below those two boundary points is likely
to be at least $100. By
buying into $1315, you have a chance to make $200 should
price move $100 higher above $1430, and you minimize the
discomfort should price instead move lower. Those
waiting for $1430 to be taken out upside or for $1250 on the
downside to buy anything,
are making major tactical errors. Uranium,
Corn, Wheat, Oil, Dow, and many other anti-dollar items are
blasting higher, and a number are hitting new
highs. Use
the crazed actions of Team Correction to make yourself.....
A lot richer!
Thanks!
Cheers!
st.
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