Aug 3, 2011

Jim Sinclair's epic $1650 gold target was achieved last night, as the gold punisher mauled the dollar once again. Congrats to Big Jim! We actually kachingo'd our way through $1670, while Elmer Fudd Public Investor sat there trying to figure out his own name. He doesn't get quite the same congratulations, to put it mildly.
Fudd is out of silverware to sell to the pawnshop, and he's burned through all of Granny's gold jewellery. Oh well, maybe the piglet on wheels can take in the wrappers from his kids' gold foil wrapped chocolate coins. There's a tiny chance the pawnbroker will think those are real. There must be some gram of gold left somewhere that Fudd the pinbrain owns, that he can get rid of, for the Gman's finest toilet paper right before the parabola blows him to the breadline! Go Fudd go!
The gold punisher is preparing to move into "I take no prisoners" mode. We are in pre-parabola mode now, but parabola time is approaching quickly. Sadly, breadline time for Fudd is approaching, too. You saw Fudd take zero preparation action as America almost defaulted. Hello, Earth to Fudd in the insane asylum, come in please. As the situation grows more dire, Fudd prepares less and less. Classic Fudd in action. The ultimate bankster mark is victim to the ultimate bankster wealth transfer on an almost daily basis now, and the question is, are YOU onside?
Within the gold community itself, we have lost many troopers. We will lose many more. First, team "I have no bullion, just gold stocks, because I'm a greed machine" took some serious pain, starting in 2006. The good news for those who endured is your pain is almost over. Party time for gold stocks is very near. In 2008 and again recently, team "silver is better than gold to make dollars of wealth in a crisis" got a dose of....Golden Reality.
Be careful about attempting to build dollars of wealth in a dollar crisis. Most didn't listen when I first mentioned this concept. When the dollar implodes at the hands of the punisher in a reverse parabola, just mention of the word "dollar" may send an adrenaline rush of terror thru all of us.
Important: When you sell silver into strength for gold, you do it not because silver "might have a correction against the dollar", but purely to book profits, understanding that as the crisis goes into crescendo mode, the volatility in silver could become almost obscene. Do not sell silver for dollars when you book profit once we blow thru $50. Sell it for gold.
Or risk being left in parabolic dust.
The bond market tied team shorty bond pants to the ground over the past 48 hrs and took a jackhammer to them. Team shorty bond is finished. I've told you "only 500,000 times" do not short the bond with anything but the wildest and tiniest gambling money.
Wait for it to implode, get backed by gold in some way, and then buy it in an accumulation PGEN. Do that, or get blown away along with team shorty. Forget the rants from the gold community about the bond having no fundamental value. It's the shorty pants play that has no value. It's a bet on the dollar. Thanks, but no thanks.
My biggest worry about GDX.... is whether I've really bought the monster position that I should have, before it explodes upside and shreds the dollar like the dollar didn't exist. For now, the dollar does exist, and the only question is, what is YOUR biggest worry about GDX? Hopefully, it is the same as mine.
Gold has rallied 13% from the $1462 lows. Silver has rallied 28% from the $32 lows. Hands up all silverbugs who think "that isn't good enough, I demand more!". Silver IS outperforming gold here and now, but do you know so, and did you buy into the $32 lows, or did you top call it to $26 along with the other 90% of clam-baked teckies? Remember the statements by 93% of gold analysts at $1478: "I'm bearish short term". English Language Translation: "I'm afraid, so I sold everything right into the gold, silver, and gold stocks lows. When it goes parabolic I'll play price chaser and risk getting blown off the financial planet".
Wheat and corn ravaged the dollar yesterday. Jim Rogers says agriculture is a buy and hold for 20-30 years, but the overlevered fundsters thought he said 20-30 minutes, so they shorted it all. Oh well, more for you. I've built my food core. Have you built yours? Think about that statement, 20-30 years. In reverse, it applies to real estate. 20-30 years in the garbage can.
Some wrote in asking if the Dow isn't a buy now, since it dropped 1000 pts. Obviously speaking strictly in PGEN terms, it is a buy. My focus has moved from the Dow to gold stocks, and this is Dow crash season. If you ask me what effect a Dow crash might have on gold stocks, all you'll get from me now is a blank stare. I've flowed my liquidity from Dow to gold stocks. End of story.
For me to get more seriously interested in the Dow than I'm interested in gold stocks, I need to see the Dow get mauled in a major crash or sit in this price trench for a long period of time, many more years, a crash/trench that sees Fudd the greed-a-holic finally exit the market once and for all.
One of you mentioned that as Fudd sells out his final stk mkt holdings, he becomes a non-target for the banksters. That's partly correct. His dollars are the asset now in wealth transfer play. You wondered if pension funds and other institutions become bankster targets. Yes, and no. The banksters don't want to kill the goose that lays their golden eggs, so it is important that institutions generally are profitable with their investments.
I think we see a full blown pension fund panic out of the dollar and bonds and into the stk mkt. I think it will be the greatest liquidity flow in the history of markets. The banks make enormous fees from prime brokerage operations for these funds and institutions. That's the milk machine.
The pension funds are more likely to be targeted by governments desperate for money, than by the banksters. New taxes, regulations on what investments can be bought/sold, withdrawal locks, etc, are what the Gman may start working on, as his financial situation grows worse. The banksters milk the institutions, but only to a degree, with algo trading robots, but they don't engage too often in taking the entire other side of the trade, like they do with hedge funds and with the public.
OTC DERIVATIVES WERE THE ONE EXCEPTION TO THAT BANKSTER RULE, AND WE DON'T KNOW TO WHAT EXTENT MANY INSTITUTIONS AND PENSION FUNDS ARE UNDERWATER AND BASICALLY HELD HOSTAGE BY THE BANKSTERS.
In the market, generally, the banksters take the cream, institutions take the milk, and the public gets what turns rancid. The banksters buy in the ultimate pain zone, then sell some to institutions when price hasn't moved up much in points, but hugely in percentage (look at the action in Bank America, Alcoa, and GE out of the March 2009 hole in the ground and you'll see what I mean), and then the institutions sell to the public into the "endgame". That endgame can be many years in time.
Oil is down to $93. Top callers are emerging. The trend is their friend, or so they think. The understanding of oil as an asset is disappearing and being replaced with "what's next for oil against the dollar and why?" That's an error in tactics, and it will be costly for them, and beneficial to you.
My view is that if you didn't buy any oil on the $25 meltdown from $115 to $90 (super sale), now you have a chance to buy decent weakness in the vicinity of that price, here at $93. Do I guarantee that this is the best sale for oil?
No. There could be a better one, and there probably will be, but I wouldn't waste time betting risk capital on that idea.
Click HERE NOWto view the range PGEN for oil in play chart. Notice that you always want to keep the larger part of the PGEN below what the average technician believes is "critical chart support". You do that to compete with the banksters to buy what is jettisoned by the levered fundsters in a stop loss frenzy of loss booking. In this case, $90 is seen as critical.
The trend-a-holics also have an uptrend line drawn in for oil and are now operating in fear mode that "if that up trend line 'fails', it could get really bad (big price sale for you) for oil". It's perhaps a bit distasteful to basically lambaste what the technicians do in most cases, but it needs to be done, if you want to...GET RICHER!
Gridtime! Yesterday was a phenomenal day on the price grids for most of you, in most areas. Whether today in natgas is like 1994 was for silver, or whether it is like 1997, or 1999, none of that matters. All that matters is accumulating the asset in the glut zone, in the disbelief zone, in the "surprise, it just blew out the lows, again!" zone. Once you accept that part of getting richer involves eating a lot of both time and price discomfort in the trench, a lot of that actual discomfort is replacing by an understanding of what the asset is. The price quotes become more disappointing than painful.

Thankyou

Cheers