May 4, 2011
1. Hi Ho, Hi Ho, it's off to work you go. Or is it better stated as...Hi Ho, Hi Ho, it's into the GDX blood zone you go.
2. The greatest gold stocks value sale of all time continued yesterday, and accelerated, with the banksters reluctantly allowing you to buy a little more stock from the short-obsessed fundsters, and some from a shell-shocked gold community, for a little more time.
3. Once again, all gold stocks astronauts (you) had the countdown halted. Houston Control (Bankster Control?) killed the countdown right before blast off, once again. Everyone out of the spaceship while they load up, somehow, even more gold stocks cargo into the rocket, for you. Patience, and the PGEN approach to buying, particularly in HSR zones, is the only way you survive all these halted countdowns, let alone profit from them.
4. Readership at the major gold sites is down substantially, by the stats I follow. If any of you have any stats on that, let me know what you are seeing. GoldLion reports that for all practical purposes, 100% of his personal friends, who are directors, presidents, and chairmen of many gold juniors...100% of them are 100% mentally broken and demoralized. As for the gold community, he believes many investors should be placed on suicide watch.
5. Is there any good news amongst all this morbidity and carnage? Well, my silver put options (and yours?) are "only" up 50%-150%. Remember that a 100% gain on your options may or may not cover losses on the physical. You may need much higher numbers. Use current weakness to buy more TIME if you fear further weakness. Never let options go close to expiry. Exit the trade or roll them over but NEVER ride an option to expiry day unless you plan to exercise it.
6. Stories of imminent comex defaults and finished-off banksters are now drying up like dried prunes in the Sahara. The only defaults I predicted are the ones that ARE occurring; default of the leveraged specsters (speculators) and fundsters who are screaming that forcing them to put up $15,000 to buy $250,000 of silver is outrageous.
7. Yes, what an outrage. Force these drug addicts to carry a blob of silver with a "huge" 6% of the value of the contract, then wonder why they blow up like firecrackers in a blast furnace. That's 16 to 1 leverage. If I ran my accounts or monies I manage with 16 to 1 leverage, I'd call the police and arrest myself, on the charge of operating a financial vehicle with no brain!
8. The most hilarious part of the story is that the banksters actually loan the fundsters money to carry THAT 16 to 1 leverage to even greater heights of madness. Some of the fundsters are leveraged 100 to 1, and using various computer "metrics" models for supposed risk management. The models relate relative pricing of assets to each other. They call it relative pricing metrics. I call it the metrics of madness.
9. Real risk management for fund managers and specsters starts with cutting your heroin usage while operating a motorized financial vehicle. The over-leveraged fiends are always just one surprise move away from obliteration.
10. In a chapter from the bizarre and surreal handbook, the GDX ended yesterday's trading day BELOW the Oct 2010 high point of insanity I labelled at $58.49. Yesterday we closed at 58.22, and traded as low as $57.57!
11. This, while gold bullion closed at $1527! Any sane analyst knows that GDX should have hit $100 by now, and some gold juniors should be up 1,000% from the 2006 highs, not sitting in the minus 30-50% performance ditch. Well, welcome to the market, welcome to the "whatever you know is impossible will indeed occur" show.
12. Worse, the GDX is actually trading barely above the 2008 high of 56.35, while gold bullion is 50% above its 2008 high. The situation is surreal. GDX has advanced 4% while bullion is up 50%. GDX should be up 500%.
13. All the emails I got yesterday from non-subs were "I don't know if I can go on, is there any hope?" type emails. Click here now to view the GDX Buckingham Palace chart. I call it the Buckingham Palace chart because what you are witnessing is an epic changing of the guard. GDX is being passed from weak to mighty hands.
14. Look at the volume bars I circled. Buyers into that last high are bailers now. Funds are piling on more shorts, and price, really, is not moving much. WHO is BUYING gdx and individual gold stock here and now while the fundsters and broken specsters press the sell button? Answer: YOU ARE. [Yup. I bought GG and GDX. -FNC]
15. Keep in mind that while the gold community is demoralized, the fundsters aren't doing a whole lot better. Stocks are still generally where they were back in October, and a higher bullion price is in play. You need to understand the mind of the other side of the trade. Without a major hit on gold, the fundsters can't escape from what has become a dangerous trade for them. As always, the banksters are in the middle, buying stock from a bailing and broken gold community, making money on loans to the fundsters, while beginning to threaten the fundsters that "if gold bullion does move much higher, we may have to cut off financing for your ratio scheme".
16. Click here now for another look at the GDX daily chart.
17. I want you to stay focused on the highs at $64 and the lows at $52. This is becoming a fairly big rectangle type of formation, particularly in terms of time. A real rectangle requires the price to touch the demand and supply line areas at least twice for each.
18. The bottom line? There have been two touchings on the supply line, and one on the demand line. Price might be going down to touch the 52 line, or coiling to blast thru the 64 line. We can't know the answer, while Elmer Fudd Public Investor screams and blames any of you who are financial advisors, who recommended to Fudd that he buy gold stocks. There's not much you can do for Fudd. The price of his gold stocks should be the least of his worries, unknown to him.
19. Fudd in Japan gets to go to his grave watching a 20 year bear mkt in stks turn into a 30 year bear, and maybe a 40 year bear. In Canada, politicians are re-elected for being lucky enough to ride a $113 oil price and a refusal to allow Mark Carney to buy OTC derivatives as central bank "reserves".
20. Rising rates have yet to show themselves on the global economic stage. The crisis is accelerating, defined by gold touching $1577, and it is unknown what happens to nations like Canada, let alone JAPAN, if rates begin a more meaningful hike. Fudd knows it can't happen because Dr. Pinocchio promises him all is fixed with the photocopier. In a page out of the twilight zone, some analysts are now saying rates SHOULD be raised because BANK PROFITS ARE DECLINING. Hands up everyone who thinks that the central banks should crank rates because the banksters are not making enough money....
21. Take a look now at the 3 month 30 minute bars chart for GDX. While oscillators can become useless in extreme market moves, that mainly applies to the [longer-timerange] daily, weekly, and monthly charts.
22. While price is skyrocketing or tanking against flatlining oscillators, the 30 minute chart oscillators on the 3 month chart continue to OSCILLATE. There has been a huge move down in price on gold stocks. GDX paints the overall picture, but many individual situations are down by 30% and more in this move.
23. If there is a substantial bounce, let alone a blast thru 64, you should be sitting in the kachingo mania driver's seat within days or even hours, provided you are in pgen buy seat now. While the oscillators are all showing GDX is poised to make a big move higher in the short term, price itself speaks even louder throught a "buy me!" bullhorn!
24. Those of you who either bought put options or switched some silver to gold are in laugh mode this morning as you watch the banksters separate the fundsters and speckies from their silver. But before that ego gets too large, with no ringing the register, please check this gold to silver money chart. For those of you who are traders, it might already be time to be selling gold and buying silver!
Grid Time! While the silver top callers will break even on their shorty pants fantasy IF silver "only" falls another $10 against the DOLLAR, those of YOU who are gold/silver MONEY traders are already rolling back IN to silver from gold or should be today, in the short term. You are ISOLATED from the toilet paper lunatics and BUILDING WEALTH by building MORE ounces of gold and silver... I'll cover some more ratio charts on the site in a few mins...
Thankyou
Cheers
St out!