Aug 6, 2011

I'm writing this morning from Murray Hill, New Providence, in New Jersey. Beautiful small town. Not as beautiful, however, as....GOLD. But, then, what is?
On the plane down here, the air crew handed out Canada's "Financial Post" newspaper. I never got one (guess I didn't have my Elmer Fudd name tag on) but I could see other passengers holding the paper with the main headline screaming, "PANIC", referring to the light chain sawing of Fudd by the banksters in the stk mkt this week.
If they call an approx. 1500 pt drop on the Dow after it rallies 100% and over 5000 pts, a "panic", I'll ask you to wonder.... what they are going to call the situation if the banksters unveil a real crash in sept-oct? Perhaps the air crew will have to hand out diapers on the plane, rather than newspapers, for poor Fudd!
All signs continue to build towards a Gold Punisher Parabola. Which means the banksters will exert substantial effort to have as few passengers on the rocket as possible, when blast-off occurs.
One of you told me on pre-jobs report gold smackdown day, Thursday, that CNBC brought Dennis "the gold market menace" Gartman onto the show for some top calling, as the banksters forced the fundsters into bail and fail margin called mode on gold. He put on a great show, and all the peabrains gave him a standing ovation.
The good news is that Dennis is OK. Why? Answer: Because after the show the men in the white suits got him safely back to his padded cell in the dollarbug asylum.
I talked briefly in a couple of yesterday's videos about the importance of understanding the incredible magnitude of this crisis. There's absolutely nothing wrong with saying, "l'm a little greedy, and I'd like to take a shot on silver rather than gold to make more dollars than I could with gold in this crisis".
Likewise, there's nothing wrong with saying, "I'm a little greedy, and I'm going to try to make more dollars with gold juniors in this crisis than I will make with gold."
When it becomes a problem, is when you start rationalizing that modest greed with supposed analysis of why silver or stocks are superior to the punisher. The fact is that this is an epic crisis that has barely started, and it can only be ended by gold being used to devalue the dollar and debt. Gold can't solve the crisis, but it can end it. So can Ben Bernanke's photocopier machine, if he's given the green light by Timmy "the terminator" Geithner.
Nothing else ends this crisis, and nothing solves it.
The crisis certainly cannot be ended by gold juniors going parabolic, or silver going parabolic.
Once you start making statements like, "isn't silver the poor man's gold, so shouldn't it outperform?" you can take yourself off the crisis main road and end up in the ditch while the gold punisher steamrolls all in her path. Ride the punisher. Don't try to outsmart her. You will totally fail.
Yesterday, horrifically, gold juniors via GDXJ blew out the low! If you have the gambling mentality, you can handle that reality. If you have the "gold juniors find the gold, and we need more gold, thereby gold juniors are the superior investment to gold in this crisis" mindset.... It could be lights out for you in this type of situation.
To make life much easier for yourself in this crisis, focus on the fact that every asset you hold is going to take a number of surprise beatings, before and within... the parabola zone. Tell your children and the younger generation, that in the next monster crisis they live thru, they should buy gold bullion safety first, and stocks and other greed machines later.
Some gold juniors are below where they were LAST YEAR at this time! Endure the gulag. Demanding to be set free or get a time frame for your release won't help things.
Friday saw even bigger panic selling in GDXJ than on Thursday. Some of you wondered why on Thursday, I didn't issue monster buy signals. If the theme is to build the biggest possible "I'm prepared for the parabola" core position, then you should have already done so on the last run down towards $32 for GDXJ. You need to be prepared to buy under $32, not build core on top of core before we get there. We got there on Friday, and got below it.
Question: Do you understand that for every GDXJ seller, there was a GDXJ buyer? Who bought all that stock that was jettisoned by the wiener patrol? Answer: You bought some!
The US Gman had his credit rating downgraded from Triple A yesterday. The stk mkt managed to rally, finally, on that news. Sell the rumour, buy the news.
The Dow nosedived into large HSR at 11,258 and at that point the banksters shut down their chainsaws. Wow, what a roar all those saws made. Time to re-fuel, sharpen the blades, and oil up!
Fudd lies on his financial back now, like an upside down beetle clawing to right himself. What happens to Fudd at the hands of the banksters in the real crash season of Sept-Oct, I have no idea, but I'm glad I'm not an upside down beetle watching a bankster with gold jack boots standing over top of me.
The stock market is now set-up for a massive crash, if that is what the banskters desire. Don't bet that this is or isn't what they desire. Just be prepared to respondand....endure.
Some of you wrote in saying, "I got it, I understand how much power the banksters really have, if they can, effortlessly, blow away in an afternoon what it took the funds and the gold community a month to build on the upside."
I would argue that what was blown away was several months work, not just weeks. Regardless, the bottom line is that you don't take on evil trillionaires who operate a boatload of algo programs that cost $50 million apiece, with trendlines, MACD buy signals, and mine reports. That can't work.
Those of you who did employ my Dow 10,000-15,000 range shorting PGEN should be pretty happy with the kachingo action all week long. Those who started buying on the long side in the area of Dow 11,258 made micro money, but you are already in the black, while Fudd looks like lead victim in the Texas Chainsaw Massacre after what I consider a light downdraft, not a crash! Manage risk, to build reward.

Report Card Day! Focus on the weekly and monthly chart HSR lines if you find yourself being booted into the discomfort zone by the banksters more often than you like. Then you can give a big yawn as the Dow "careens" into numbers like 11,258, give your PGEN buy button a few light flicks, taking professional action while the Greed-a-holics burn and never learn! Grab a pair on sunglasses and a cigar, and a get a pat on the back from the punisher, versus a scream and bail life as a beetle under bankster jackboot attack.Respect bigtime HSR zones, and have the patience to wait for them. Most of all, respect the punisher and don't try to outsmart her! I'll be following up with some tactical vids tomorrow (today if I can get an internet access around the wedding I'm here for) for all the major HSR zones on a lot of juniors stocks and the big assets. Thanks!

Thankyou

Cheers