Aug 12, 2011

Another day goes by, and (somewhat) sadly, there is still no rally in the stock market for the leveraged bottom callers and Elmer Fudd Public Investor. An emotion of dejection is beginning to set in for the timers.
A drunken "the Dow is a slam dunk buy!" party has come and gone, and now it's hangover time. Perhaps minor details like a BankAmerica monthly chart that looks like a giant version of ENRON... aren't so minor after all.
Click here now to view a possible "Super Enron" or "Giant Version of Lehman" in the making. Bank America may have won trillions in derivatives bets, but the question is, what happens when the losers can't pay the winners? That chart is telling you, exactly, what happens... If a bank bank implodes, don't count on the dollar being a safe haven. That's an event that could precipitate an immediate one-time revaluation of gold $1000 higher or more.
Fudd closes his eyes in his closet with his "crisis is over" hat clutched tightly to his chest, and curls up in the fetal position. A few tears roll down his cheek. He waits for the Gman and Dr Pinocchio to announcesomething, anything.
Meantime, on the front lines of the battle, the QE worshippers heroically aim their toy squirt guns at the OTC derivatives forest fire upon bankster command, fire their best shot, and are promptly incinerated likerice paper. Charge of the QE light brigades becomes a sickly march of the lemmings over the gold punisher's cliff...
My message to the Dow bottom callers is: When you get in a row boat and row out to meet the hurricane, then try to race it back to shore, are you really as smart as you claim?
At this point, the action in the Dow has become, technically, a small rectangle, one that is quickly gaining a 2/3 chance of breaking to the downside.
One of you sent me a note about a Korean stockbroker that jumped out of his window and killed himself, as the mkt tanked over the past week. I expect massive numbers of suicides in the coming years from the public, not just the odd stockbroker.
What you are witnessing, here and now, is the "beginning of the end" for Elmer Fudd. The will to price chase is being ripped out of the public's soul, and that will is being replaced with dejection.
That dejection will grow into a tidal wave, to the point that people you meet on the street will look like shells of men and women. They won't be able to smile. If you laugh at them, I doubt they will even be capable of getting angry, such will be the extreme destruction of their confidence. It is the beginning of the road to the breadline, and it is 100% real.
I would urge those of you who are silver fans to view the video I did yesterday on silver. Those who went 100% into silver with no , in a greed machine exercise of madness to race gold against the dollar, are now stunned as they watch the punisher ravage the dollar while silver appears to be turning into almost a casualty of war.
Silver is one of the world's ultimate assets, which is why you have to be prepared to buy it to zero, rather than waste time projecting it to infinity. Silver has actually outperformed gold from the April/May lows at around $32 for silver and $1462 for gold, on a percentage basis, yet most silver bugs are deteriorating in morale, because they wasted even more time listening to amateur timers trying to top call it down to $26 and lower.
Others are wasting time blaming the banksters and other "manipulators" for raising margin on silver futures. Time is precious. Use it on the gridline, not the gripeline.
If you bought no silver into $32, then you have not reaped any of the "more gains than gold!" action, on the move to $42. Respond to silver price weakness, not to projections from timers in their own mind. These timers either own no silver or think it is better than gold, which it isn't.
Silver is gold's little brother, and those who can't accept that will only have much more pain to endure going forwards. Gold is the punisher, and silver is the sidecar along for the ride. Respect the punisher, or get destroyed by her, no matter which asset you are. When I say "All hail the punisher!", I mean.... ALL.
I'm a buyer of silver, every dollar down, all the way to...zero... between 0-$50. Above $50 an ounce, I am not a buyer of silver, at all, on anything but extreme weakness.
Gold is massively overbought, technically, on the daily, weekly, and monthly chart. That doesn't mean "the top is in". 93% of gold timers were out of gold from $1462 to about $1650, where they moved in to play top caller again. Then gold soared another $165 while they stood there in audience mode.
You could have heard a pin drop when I issued my "gold declaration of financial independence", at $1776. Instead of a fireworks of celebration, those that did speak mostly ranted about their failed gold stock greed machines, and others embarked on a maniacal mission to bottom call the Dow hour by hour, after some Dow stocks "corrected" 20%, after rising 400%.
Houston, the Dow rocket has a problem, and the question is, are YOU onboard?
Some of you artists. I want to talk to you about.... chart painting. The banksters paint chart patterns on the price charts like Leonardo da Vinci paints canvass. The way a master chart painter operates is much the way a sculptor or painter operates. If you don't have access to unlimited risk capital, my suggestion is that you don't try to play chart painter.
When it's chart painting time, (let's say... now, for instance, in gold) the banksters begin to "weigh on the bid", while pumping the media with gold bull stories. As various price chasers buy gold with leverage provided by the banksters, the banksters take the other side of the trade, but offer little or no more contracts to sell than the buyers are bidding for.
That action allows price to rise strongly without resistance, creating a powerful uptrend on the chart. When they "weigh on the bid", they begin offering more contracts than the funds are bidding for, and no matter how many are bid, they offer more. Price begins to decline, and like a sculptor working a piece of marble, the banksters begin to carve out a painting on the chart.
Like a crew of lemmings, technicians begin to notice the painting taking shape, but they don't understand the cause of the painting. "All I know is what the chart tells me, because I'm a pure technician!" - Average technical analyst.... saying exactly what the banksters want him to say?
Click here now to view the banksters masterfully carving out a head and shoulders top pattern on gold. Fudd used to cheer each hit on gold, boasting how smart he was not to buy, and how smart he was to sell his family heirlooms for scraps of the Gman's toilet paper, at glorified pawn shops, at $1000 an ounce. As the banksters break him emotionally, Fudd is becoming too weak to care if gold falls. He's stopped boasting and chasing price. He's getting his first glimpse that he's on a real road to a real breadline, and he's starting to whimper. Sadly, the banksters have no intention of showing him any mercy. I've made a lot of jokes about Fudd, but from here on in, it will turn a lot more serious, and the jokes will end. I don't have the heart to beat on a man when he's really down. I'm not Fudd, and I'm not a bankster. I can't behave like they do when a man is down. Fudd tried to beat on gold as a bully, and that was a fatal mistake with consequences that he's only just beginning to understand. People close to you and I will kill themselves as the banksters "ramp and amp" the actions of the punisher, to collect the tens of trillions at bare minimum, and perhaps hundreds of trillions, they believe they are owed. Fudd's lifelong greed with speed obsession has left him too weak to deal with reality, and he'll kill himself rather than face the pain. If he can't buy weakness in the gold market, at all, not even with one toilet paper dollar of risk capital, do YOU really think he'll be able to endure a bread line? I'm not sure if most of you in the gold community realize just how strong your character is, and just how weak Fudd's character is, but it's true, and at this point, it's probably no longer something to joke about.

Gridtime. We can't know if the h&s top on gold now taking shape is a false alarm, and gold blasts to $2000, or if it will activate, and allow you to get more gold. All you can do is prepare now, and respond as reality unfolds itself. Thoughts about gold today are mixed with sobering thoughts about the plight of Elmer Fudd Public Investor, as he is reduced to emotional and financial rubble, in what is truly going to be one of the saddest moments of our lives.

Thankyou

Cheers