July 1, 2011

1. Gold stocks had another solid up day yesterday. I rang the cash register on some junior stock. Goldlion notes that the last day of the quarter is institutional "sell your mother for a dollar" window dressing day, as money managers buy stocks blindly to push price higher, so they can collect some additional fees, while Fudd cheers. Regardless, it was a 3^rd good day in a row for gold stocks.

2. Click this GDX link now to view the GDX weekly chart wedge action. There are a lot of positives on the chart. There is only one buy signal, and that is price dropping into your PGEN buy order points.

3. Could it all reverse and another huge leg down begins? Of course it could. But you can't live your market life by praying to your biggest fears! I think the GDX chart looks phenomenal, and while I think it is too early for such an event, it is possible for gold stocks to begin rising while bullion falls, cooking the hedge funds who are long bullion and short gold stocks. Don't rule anything out in a crisis.

4. Trader Dan Norcini is very suspicious of the USDA report on corn. While farmers couldn't get to their fields to plant, the USDA somehow announced that planting was vastly higher than the price-chasers expected, and at one point, there were apparently 200,000 contracts being offered for sale at the limit down price yesterday.

5. That action/event definitely qualifies as one for the price chasers' hall of fame record books. The overleveraged fundsters attempted to sell the banksters a BILLION bushels of corn yesterday, at what was a 10% sale on some of the contracts.

6. The banksters operated like maniacal turkeys pecking grain off the ground yesterday, while the fundsters acted like chickens with their heads cut off. This is one of the greatest transfers of agricultural wealth in one day, in the history of the wheat and corn markets.

7. Do I think the USDA lied about the plantings? It doesn't really matter, but it certainly is a big "coincidence" that goes with the equally bizarre "we're selling a few hours worth of the world's oil demand, so price must fall $10 a barrel, now!" action by the Gman in the oil market.

8. I personally don't enjoy buying sales to zero in major assets, but I've never failed to build wealth by doing so. I own more wheat and corn this morning than I did at this time yesterday morning,and that's the bottom wealth building line. Food is not going off the board. It feels like it is going off the board, but....no. Go to the grocery store and see if they are closed because wheat and corn are going off the board.

9. The reality is food just got easier to trade, because the price is closer to zero. I would guess hundreds of farmers in Asia probably are killing themselves today. That will never be reported by the USDA fact-massage crew. Fudd doesn't care. All he knows is that houses to the sky while food goes off the board is how to build wealth. Nice plan. Make housing as unaffordable as possible for the poor and tell them it is a wealth building exercise. Then wonder why you end on a bread line....

10. Fudd is the one going off the board, not food. Use put options and/or an "up to" 30% short position when accumulating major assets like gold, food, energy, to maintain sanity, and book wins, while the accumulation work rolls on.

11. Monty Guild wonders if the US Gman plans to step up the action in Libya, and mentions a possible coming war between Saudi Arabia and Iran over OIL. Quick, sell all your oil, because Fudd knows it can't happen and the Gman might sell another 10 minutes of world oil demand from the emergency stockpile!

12. Don't buy any natural gas, because any second now the shale production will dwarf the mid-east production and price will go to zero. Fudd guarantees it, so act on it. A mid-east war has absolutely no ramifications for the natgas price, according to the world's stupidest price chasers.

13. A Saudi-Iran war, with the West backing the Saudis and the Russians backing Iran, could go out of control and morph into a world war. Quick, sell all your gold, too, because Fudd knows the Western Gman would never allow that to happen, let alone goad it to happen, and there is absolutely nothing wrong with photocopying your way to eternal wealth.

14. Want QE3? You got it. It's renamed WW3. Have fun with it. The solution to the crisis is about making the debt payable, and that has nothing to do with economic recovery. War sends gold to the stratosphere and makes Gman and otc derivatives debt payable. The Gman loves war. It really defines who he is. A first class murderer.

15. The bottom line: "Putrid" is a word that doesn't even come remotely close to describing the nature of the Gman.

16. Why do you think the gman won't spend 20 cents on electric cars? Answer: Because then the price of oil tanks, gold falls, and the debts become totally unpaypable. Nothing beats a good war to get the next phase of dollar devaluation rolling while telling Fudd that the destruction of the currency is really wealth-building for him.

17. Click this weekly oil chart link now to view the action in crude oil. Like gold stocks, there is some very positive action on the chart. Is it a guarantee of higher prices now? No, but the number of positive indications on the chart is growing.

18. Oil stocks look even better, particularly junior oil stocks. Click this JUNIOR OILS LINK now to view the powerful setup in place there.

19. The banksters own the power to print money. Don't think they are going to give that up very easily. The idea that people with printing machines who can buy to zero in the laugh zone while you do it in the pain zone are going to lose to the gold community is totally insane.

20. If the banksters were price ploppers or price chasers with no gold, then I would agree with those in the gold community who keep saying, "any day now the banksters will blow". That is not who the banksters are. Can you seriously imagine having the power to print money and what "boost" that would give your buy programs and sell programs?

21. Goldlion wants junior stock investors to know he is suffering severe discomfort as he buys, right here, right now. Of course his accounts are drawing down, despite booking wins. Only a liar operates a buy program into price weakness and has no drawdowns. He does not have a printing press to operate his pgens any more than you do.

22. The cocaine-based alternative to the PGEN is to be like Fudd. You either face the buy zone in the discomfort zone with no printing press, and endure, or you devolve into a Fudd-like entity that chases price and fools yourself into believing you can flip trade your way thru the crisis.

23. It's only a matter of time with that cokebrain strategy before you look like Fudd did at Nortel $1, a share after paying $100 on the buyside.

24. Get a grip on when you are moving beyond strong discomfort and into the pain zone. You can't keep buying wildly once you go into the pain zone if you don't have a printing press, in most cases.

Gridtime! While goldstocks had 3 great days, most investors are still badly underwater. Do NOT forget the lessons of right here, right now. When GDX blasts over $64 the same price-chasing urges will begin to return, but the situations will only repeat in ever-bigger size, as the dollar bear market rolls on and gold blasts higher. You need to press hard to buy stock now at the lowest prices and break thru some of the barriers that have held you back from buying this type of weakness in the past, or you will only suffer much greater pain in the multitude of bashings that lie ahead for gold items, albeit from much higher prices. Think hard about how you are going to make it through this crisis, and up the amount of discomfort you can withstand, because the banksters are preparing to up the amount discomfort they want everyone to feel. There is no avoiding the discomfort. Don't listen to Fudd's price-chasing nonsense. He will destroy you if you do.

Thankyou

Cheers