Sep 7, 2011
Sound the alert! Gold sale on now!! Gold has already declined $110 from last night $1920 area high, making $1810 a point for you to initiate some buying. Those with access to the futures markets (hopefully with little or no leverage, which can you can have by choice now, or by bankster force later, in a much less enjoyable way...) are able to lock in the best prices, during the most amount of trading hours.
I bought the last round of silver weakness every 10 cents down, and shaved off 1 position every dollar up, so you have an idea that when I say "All I say for you to do, I'm doing myself", that can be applied fully to my view that winning gold traders need to drastically tone down the amount of trading they are doing.
There is a time for high speed trading in size. That time ended, for this gold bull market, in the $1462-$1578 capitulation zone. It boils down to the question of whether you want to be a professional coin flipper, or whether you want to get richer.
Those wanting to flip coins (call intermediate and minor trend gold bullion turns against the dollar, using oscillators and trendlines) risk joining Elmer Fudd Public Investor.... on the road to the breadline.
Those bowing to the power of the punisher, here and now, risk only getting richer. I like the sound of that last sentence, and the question is, do you?
Gold trading in massive size and frequency will return as a profitable means of getting you a lot richer, but not until the GWT (great wealth transfer) is completed, and gold is locked to the dollar/debt,creating what may arguably become the greatest PGEN range trade in history, both in terms of time and price.
Wait for that trading super party, rather than trying to create it now, out of your trading needs pipedream. That PGEN nirvana for traders is many years away, and will last for a long long time when it starts, and those who stand strong now alongside Prince Patience, will glide into that situation, rather than crawl into it alongside Fudd, financially emaciated.
The theme, unfortunately, for new entrants into the gold bullion market here, is to sit down, look in the mirror, and work to build the amount of discomfort you can withstand in the drawdown zone. Operating flip trading schemes in the parabola zone is like trying to catch a rocket with a bicycle; you'll be left in the dust.
The gold punisher isn't interested in the flip traders' range trades. Her target is the stratosphere, with some fairly frequent massive sewing machine needle style down thrusts, to clean the flippers, dollar bugs, and team "I can create now, what I should have created at gold $250-$400", off the golden souvlaki stick. There may be some price moves of enormous size that occur via govt announcement by decree, rather than when markets are open. If that happens, some of the leveraged short flippers will likely kill themselves.
You either endure and get massively richer, or you reveal yourself as somebody trying to play Russian roulette with a six shooter than has 6 bullets in it. Nobody flip trades their way thru this parabola zone successfully. Nobody.
It wouldn't surprise me at all to see gold decline to maybe $1400 or $1500. I doubt it happens, but given the $900 upmove from $1000, a 90% rise in price, such a retracement is easily possible. There might be nothing until much higher prices, say, $2500- $5000. Nobody knows, and nobody intelligent should care. I could see GDX declining only very modestly if such a correction happened now, which would shock most of the gold community. I could also see GDX rising to over $70, while gold fell $500. I think it is a touch early for that type of event, but I wouldn't bet against it happening.
While it appears that silver is poised to enter the parabolic zone if it takes out $52.50, don't be too quick to demand it happens in some timeframe that just satisfies your emotions.
Surprise is a central theme of any crisis, and the bigger the crisis, the bigger the surprises are in terms of price movement, and the longer they can last, as can price quagmires. Don't fight surprise in a quadrillion dollar OTC derivatives crisis. Embrace it, or get blown away.
Ask yourself, seriously, can the crisis really be reflated while the bond market goes ever-higher? Pension funds hold about $30 trillion in assets, and they are largely responsible for the bond holding hands with the punisher, and, in the short term, demonstrating very similar chart action. I argue that the punisher is going to turn on the bond and shred it, unknown to the bond bugs.
The banksters, big surprise, have their keen eye on this situation, and are "helping out" by advising the pension funds that, "if the Dow falls here, it could get pretty bad, so you may want to consider moving more assets to the safe haven bond market". When you are about to retire, and your retirement is being directed by the banksters, well, it may go well, but there's always that minor issue of the six shooter with six bullets in it. Somehow, that issue just won't leave...
A parabola move is not a bubble, yet few understand. Bubbles are created from greed, not fear. The 1990s stk mkt became a bubble. Gold became a bubble in 1979. The people lined up in the street were greedy to make paper dollars, not because they were afraid the system would implode. I know, because I sold to them. That won't be the ending of this gold bull, which is one of several reasons this bull ends with gold going into a likely multi-decade range trade, rather than a blow off top against the dollar.
When this gold bull ends, the public will be lined up in the street for bread crusts, not gold. The bond market is not a bubble market now, and nor is gold. The bond could become a bubble market, but that would imply that the Dow would likely be rising while the bond soared.
Good times need to be here for a bubble to occur. Greed, not fear. If pensions are dumping stk mkt holdings out of fear and buying bonds with the proceeds, that's not bubble action. The bond could go parabolic before imploding, but that doesn't make it a bubble. A better term for the bond, now, is probably a "a pre-parabola trainload of lobotomized cowards". Parabolas can be caused by greed or fear. Bubbles are caused by greed. Know the difference, and understand that gold doesn't require Elmer Fudd the greed-a-holic to go into outer space. What IS required, is for YOU to have your gold space helmet on, from here on in, at all times.
If people start buying the bond out of crazed greed, then you have a bubble on your hands. That doesn't exist. What exists is Elmer Fudd Public Pensioner standing there like a block of petrified wood, or should I say, petrified US dollars. All Fudd is doing is hoping. He's not acting much. He's just standing there, paying bills, and hoping. Those tactics are not going to work in this all-epic crisis, unfortunately for him.
What is the bankster fuse that leads to the bond market OTC derivatives dynamite stick motherlode? Answer: Ironically, it's giving the fund managers what they want; higher rates. While the US T-bond has risen in price, some of those bonds have to be sold to pay the pensioners. PFMs (Pension Fund Managers) want (desperately) higher rates to pay their pensioners. Most of them owe money now (unfunded liability).
If YOU were a bankster, what would your strategy be? I'll dare to suggest it would be to tell the fundsters, "don't worry, rates will start rising soon, Bernanke has chopped his infinite time frame for low rates to just two more years!" The fundsters actually believe rising rates are a good thing.
Earth to Pension Fundsters on Mars: Do you really think the banksters are just going to raise rates just "a little bit", just to your "sweet spot zone"? The bottom line for the PFMs: Don't wish for something too hard, like rising rates.... Or you just might get it.
GATA claims to have gotten their hands on cables from the Chinese govt showing they are very worried that Tim "the terminator" Geithner, and Barrack "Gold Mask" Obama, may be planning a 10 to 1 reverse split on the US dollar. GoldPriest might argue it should be 50 to 1, and he has a solid case.
Click here now to view a likely picture of what the banksters do to the pension funds between 2015-2020. Thanks. PFMs are calling the current year for them a "nightmare". That's like Sad Sack calling the rise in gold from $1400 to $1900 a nightmare. If the bond fund managers think the T-bond rising from 120 to 140 was a nightmare, I wonder what they would think if it tanked to 50? Let's see if they call that a "party". Reuters News states that future (unfunded) pensioners could face either lower payouts or a longer working life, and possibly both. Really? If you call standing in a bread line a "longer working life" and bread crusts for dinner a "lower payout", I guess Reuters has got the situation dialled in. Do you?
Grid Time! The purpose of the PGEN is to build paper currency wealth when paper currency wealth is important, and ounces, bushels, and barrels of wealth, when they are important. Which do you think is important now? Is the risk of watching the Terminator reverse split you 10 to 1 (or 50 to 1) on a Sunday nite with you out of or short gold... is that risk worth the thrill of the coin toss? I would argue that perhaps, no it is not. When you shave off ounces into dollar strength, the main purpose is to use those shavings to get more ounces. The top callers were destroyed, first by the their totally failed performance, and now by the very usefulness of what they do. My question to them is, how does it feel, to be totally useless? Run as far and as fast as you can, from anyone who looks, smells, or sounds even the tiniest bit like a gold top caller. Don't just run. Sprint Away. The risk of catastrophic financial damage caused to you from being anywhere near them is far too high to play another top call game, ever again, in this gold bull market.
Thanks!
Cheers
St out