Apr 22, 2011

1. Click here now to view the twin turbines of the coming global food crisis, now being wheeled out to the launch pad!

2. First, here is the wheat chart. Chartists may see some sort of head and shoulders topping picture.

3. I don't see it that way. I see a huge consolidation with a minimum target of $11.50 a bushel.

4. If, somehow, the bears turned out to be correct, and price fell to the $5 a bushel area, I would be an enormous buyer. While I thank the bears for attempting to help me get more bushels of food wealth, I do not think their scenario will occur.

5. Now, here is the world's most important chart, the rice chart. Note the blue HSR line I drew freehand. Some of you thought the slight penetration of that line recently to the upside was a "breakout".

6. Do not buy breakouts. Buy breakdowns. Book profits into upside breakouts. You can't trade rice, except for in the futures markets, so most of you need to forget about trading rice.

7. Regardless, the rice chart should be followed regularly, because high rice prices will cause massive social unrest amongst several billion people, and very high prices will cause revolution and dictatorship.

8. Leaving aside price forecasts, ask yourself what happens in the real Asian world if the rice price rises above 2400.

9. 500 million enraged Asians is what happens.

10. Here's an idea. Put Elmer Fudd Public Price Chaser on a boat to China. When rice hits 30,000, let him wave a flag around that says, "Ben Bernanke is my hero, he finally raised my house price, by wrecking the dollar and sending 500 million of you towards starvation. Who cares about you, all I know is Ben says I can buy more houses on more credit cards now!"

11. See what 500 million enraged Asians do to Fudd. They'll rip his arms and legs off in about 15 seconds and use him for dog food. Sadly, all that is in Fudd's coconut head is bankster propaganda that a ruined dollar creates housing wealth for him to price-chase. I would suggest that Fudd instead practise chasing bread crusts, so he's prepared now for what will be his main endeavour very soon....

12. Speaking of Ben Bernanke, thanks to one of you, "Sir Sangold", for sending me Glenn Beck's lengthly video about the Fed. Glenn is getting the "Is the Fed really here to HELP us all?" word out to a huge audience. That plants a lot of seeds of common sense in a lot of people. I'll post Glenn's report on the website this morning.

13. Take a good look at the video I posted on silver HSR levels on the site as well. You can view the silver chart as a silver staircase. There really are only about 8 substantial HSR points between 46 and 30.

14. The KIS principle. Keep it simple. With silver, don't guess where price might fall to, simply respond if it does. Remember that silver has to rise to $92 to double your money if you buy now, whereas it makes those who bought SOME at $4 a staggering one thousand percent, just on the move from here to 90!

15. On the downside, the price chasers eat a 50% loss if silver fell to $23 from here, and it could. The trench buyers are "only" up about 500% at that point. Today's price chasers cannot withstand a 50% loss, and they would run to the USD photocopier machine in a loss-booking frenzy if price melts from here.

16. Here's a look at the silver chart via SIVR which is an allocated silver fund that likely holds what they claim to hold, for whom they claim to hold it for.

17. Note the huge volume yesterday. That is a combo of fresh price chasers entering the slaughterhouse on bankster command, and a tidal wave of shorty pants top callers engaging in a loss booking frenzy.

18. Could price rocket straight to 50, 60, 70, or 80 from here? Absolutely. A blowout in Saudi Arabia could be one of many triggers, but:

19. One of this week's main themes is understanding the difference between a soaring market making profits on positions bought into the trench, and the growing dangers to price chasers who are attempting to recreate the profits the trench buyers are making by doing the opposite of what the trench buyers did, which is PHYSICALLY IMPOSSIBLE.

20. Gold & silver stocks are how new entrants into the metals markets can re-create what a few of us are making on silver now.

21. That's not a pleasant thought for many..... The game right now is to ultra-analyse WHY gold stocks are not performing instead of just buying them on the grid.

22. I predict that by the end of the year your biggest gold stocks problem will be regretting that TODAY was not seen for what it IS; gold stocks ultimate opportunity day.

23. I am personally ramping up my GDX exposure. Many of you have attained new levels of courage. Your mindset has become, "so what if GDX or GDXJ take a hit, the risk is now in being OUT if there's a superblast to the UPSIDE, and if there is a hit my biggest concern is going to be about buying more, not looking at the dollar value of existing positions and crying". You are 100% correct.

24. Remember the other theme this week: "Gyration", which replaces the word "correction". Tops and bottoms become gyrations. Forecasting the next movement of the whipsaw becomes ridiculous. Price response was always important. Now, NOTHING ELSE works, at all.

Gridtime. It's Easter Friday, so markets are closed. I'll be answering emails and tuning up the juniors site. It's close now to rivalling the main site in terms of something I'm proud of, but not quite there. I believe that by the end of today, it will 100% be there.

Thankyou

Cheers