Apr 25, 2011

1.    Gold is trading at $1517 as I write this fine Monday morning.  Silver is up $3 an ounce to $49. Elmer Fudd Public Investor, if he traded on the market, would probably be trading at 5 cents a ton, and.... Shorty Pants?  Well, shorty shorty, pants on fire, is hanging on the bullion wire.   

2.   I expect to see silver move $20 in one day before this is all over.  Think "gyration", not "correction". You can't predict gyration.  Only the pgen will work for traders during gyration.  Gyration is not here yet. It is very near.

3.   The word from several silver bullion dealers is people are pouring into the dealers to SELL silver bullion.  That's not a top.  That's fuel for vastly higher prices.

4.   Remember cash for gold?  I renamed the operation, "toilet paper for idiots".  Now you see why...

5.  Incredibly, while silver is up $3, we are still $4 an ounce away from the start of phase two of my silver to gold profit booking program.  For those of you who want action, you can look at moving some silver profits in the $50-80 area, to gold/silver juniors, corn, wheat, natgas, sugar, and uranium.  

6.  If you want to be a trader, you need to understand that owning a core position that is kept outside of your trading accounts is part of mechanism of being a trader.  There are times when trading is useless and hopeless, yet price is leaping higher.  Core positions are a critical part of the trader's weaponry, and those who pretend otherwise are destined for 100% market failure.  You can't fight a war when the fight goes out to sea, if all you have are land weapons.  Likewise, with no core positions, when price astro-rockets and you are out, you get totally broken mentally.  Only an idiot fully hedges their core positions.  Fully hedge what comes out of Ben Bernanke's photocopier, not your gold/silver. 

7.  Those of YOU who were worried about silver, but took my advice to buy 70% put options and 30% call options, rather than pay for top calls from clowns, you are now at a net profit, on the options on just the move on the call options from $30 to $49 silver!  Take the 70-30 approach seriously, for both mental and financial reasons, when making major moves in markets.

8.  Your metals party is set to expand into the silver and gold stocks room within months, but possibly within days or even hours.  In some cases, it already has, but what is coming is an across the board astro blast in junior stocks that will dwarf all that you have seen in silver bullion so far, and dwarf all you have seen on the best juniors stocks so far as well. 

9.  You don't need the public to make your dream real. Institutions will do it in a far bigger way than anything you can envision from the public.

10.          Does anyone out there still question my statements made in January that my prediction of the year was that market timers would be destroyed in 2011, as volatility becomes a firestorm?  Look closely at the action in silver this morning.  That is peanuts compared to what is coming.  This is only the cusp of the main action.  Downside action is coming too, that will dwarf this upside action.  The current crop of silver price chasers will learn that fact, the very very hard way, but not until team shorty pants is 100% obliterated by upside action.  That obliteration is underway now.

11.         Those of you throwing gold stocks in the garbage because of an obsession with gold bullion to stocks ratios are probably making what will go down in history as one of the 5 greatest market errors of all time.  Write that down and nail it to your favourite top caller's head, with a golden railway spike.

12.         The mainsteam community, as they look at the metals this morning, are feeling the first tinges of fear, not greed. 

13.         They are asking "why?".  They don't deserve an answer.  The answer is their own actions have caused all this.  The entire crisis is caused by their stupid worship of freedom destruction, worship of the gas station instead of noise and pollution-free electricity, worship of the Gman, worship of the banksters, and worship of the credit card, and worship of debt heroin.  Now, it's payback time, and payback goes on for decades.  

14.         When does their fear turn to all-out terror?  When the banksters blow out the bond and it is realized there is no solution to the crisis except the total destruction of the public's wealth (or should I say transfer of it to the banksters), that's when you get to watch the all-out terror show.  

15.         Once it is realized that interest rates are a tool to stop demand-related inflation, and are useless against supply related photocopier action, the public will go into a complete and utter panic, as even sky high rates do nothing to halt the insanity.  Understanding the magnitude of the crisis will come in an epiphany for the public, but it will come far too late.  Those thinking the public will buy gold bullion, let alone gold juniors, are living a fantasy or a lie.  The degree of impoverishment is going to be staggering. 

16.         People will have difficulty buying food, and cars will sit idle because the people will be broke, unable to afford the Gman' tax on gas, let alone the whole gas price.  When it comes to imagining an impoverished public buying gold juniors instead of food to eat, I don't know what most of the gold community's writers are smoking, but they need to get off that nonsensical drug and take a look at what happens when people go hungry because of hyperinflation.  They don't buy gold or gold juniors and stare at the oscillators on a trading screen.  They stand in a bread line to feed their children and elderly family members.    

17.         Click here now to view the natural gas chart.  The banksters have been accumulating natgas on the long side for many years, anticipating a monster move.  Have YOU been accumulating natgas for years, or did you show up in a mini price plop and attempt to call the turn a year ago?  Get tougher, get meaner. It is rare to call a major turn and impossible to do it consistently.  Get used to the trench, and get used to Elmer Fudd spitting in your face while you accumulate.  That's the reality of wealth building. Look at the silver chart when it was in the $4 area. Shorty Pants was hyper-active then.  He called $6-9 a free money super-short.  He made some micro money then in silver, as he is in natgas now.  He looks like a lobotomized moron now in silver, because he is. 

18.         Natgas will do the same thing to him.  Gluts end.  Use tactical shorts to manage your mental state and make chimp money to keep yourself in the longside accumulation game.  Do whatever it takes to stay strong and go MORE long.

19.         I do not chase price.   If you feel the "greed need" overwhelming you to make big fast money, to buy silver that you totally failed to buy in the depths of the bear market, I would suggest you utilize call options.  Why?  Other asset classes are poised to do what silver is doing now.  Why kill yourself to make 30-50% and tie up a mountain of capital to do it, when you can have a realistic chance to make 500% in these other assets AND a chance to get in on further silver gains?  Call options are designed for speculators to make big fast money in a short period of time when the market could either soar or tank. That sums up the condition of the silver market right here, right now.    

20.         IF silver is set to blast much higher in a short period of time, call options will make you a lot of money without the heartache of watching it "impossibly" reverse just when it shouldn't have reversed, couldn't have reversed, wouldn't have reversed, but DID reverse, and destroyed your silver profits pipedream.

21.         With call options, also, you won't be destroyed when the banksters hike margin rates on the comex. By the time this bull ends, the comex will likely be a cash metals market, and the margin players wiped out.  Don't play Russian roulette with margin on comex futures.  The banksters have loaded your six shooter with six bullets....

22.         Use fresh capital in areas like gold/silver stocks, corn, wheat, natural gas, sugar, uranium, oil stocks. These are areas that could make you hundreds and even thousands of percent, without the mind-boggling downside risk that exists for new silver buyers now.   

23.         Click here now to view the sugar chart via sgg-nyse.  Rice and wheat are the world's major food staples.  Sugar is [to rice and wheat] like silver is to gold.  The wild little brother or sister.   When the price of wheat and rice rise dramatically, people start starving.  When the price of gold rises dramatically, the financial system closes.  When silver rises dramatically, it is ANNOYING for those who need it.

24.         Likewise, when sugar rises dramatically, it CAN because it doesn't create mass starvation the way wheat and rice skyrockets do.  So, as an investor, if you want the most action in food, it is with sugar that you are most likely to see a move of monster size.  I personally think sugar is going to a minimum target of 100.  It is 23 now.  When wheat and rice go parabolic, it is all Gman hands on the firehose to put out the starvation/global revolution fire.  When sugar goes parabolic, a committee is formed to discuss the situation.  Think about that in terms of which food market gives you the line of least resistance to monster profits....

Gridtime!   All sweet tooths report for duty on the sugar market gridlines!

Thank you!

S "the candyman" T...out!