Sep 24, 2011
Let's stand and give the banksters a round of applause for the Parabola Zone training session they gave us over the past week, with yesterday being best labelled as, "contest day".
You won't survive the Real Parabola Zone, without training. A 14% price drop on gold that doesn't even reach the 1st weekly chart HSR zone at $1577 qualifies as more of a warm-up than real training. Still, we have to take what we can get, in terms of on-the-fly preparation.
Mr. Macro believes the FBI failed to investigate massive front running of yesterday's gold margin call raise. I believe the banksters probably bought somewhere between 100,000 and 200,000 comex gold contracts between Tuesday and Friday.
GoldLion believes the banksters probably covered 100,000 gold comex shorts, just on Friday. For those of you following the juniors takeover of ECU silver, he views the stock now priced in the "ridiculous zone". It is one of many juniors stocks under naked and illegal short attack, helped down by paid scumbags who pose as journalists objectively reporting on the "terrible state of the company". The more likely reality is these scumbags are on the payroll of the hedge funds short these stocks... YOUR stocks.
Gold was overbought and was in a price box of $1700 to $1900, with a 2/3 chance of breaking higher and 1/3 chance of breaking lower. The "gimme more gold and gimme it on sale" team won. I ordered more physical. Did you?
Silver parked itself on the first real HSR support under $50, at $30. I bought down to almost the tick low of yesterday, every 50 cents down, with no missed buys. Still, team "silver is better than gold in the greatest crisis of all times" needs to get seriously real.
Focus on buying the silver asset to zero, not on pretending it is gold or better than gold. That idea could send you to the breadline.
It's not gold, and those who think silver can compete with gold in any way need to look at a tarnished silver bar and then look at a gold bar, and that's all there is to say on the matter. That last sentence is a lot bigger than 90% of the world will ever understand. Let me repeat it for you:
Those who think silver can compete with gold in any way need to look at a tarnished silver bar and then look at a polished gold bar, and that's all there is to say on the matter.
If you don't FEEL what gold is, then you will never understand what it is, no matter how many analysts you employ. How many of you took out your gold and looked at it yesterday? I have no idea what the price of my physical gold stock pile was in dollars. I never even thought about it. If you want to party on days like yesterday, vault your physical gold with professionals and bury another chunk. Team Vault thinks in ounces. Team Leveraged Paper Gold Wiener... well, they may need a brain transplant.
One well-meaning trends forecaster announced he's buying silver now for the first time. That's interesting, and he's only 11 years late to Party Central here at Graceland, but I guess late is better than never. He's only 600% late to the show. I'm adding a "players position" here and now, but I'm up 400% on my core silver average entry. Some of YOU are up even more. My player's position is addition of new capital in a foundational pgen and a series of range pgens, that extend...
All the way to zero. Only a madman shows up at these levels and plops in without the ability to buy to zero. You want the most silver at the cheapest prices, not the least amount of silver at the highest prices before it supposedly gets away... Duh.....
Jim Sinclair and his crew think gold may not even tag support at $1577. The bottom might be in. GoldLion's COT report analysis is one of the most bullish he's seen since the low of 2008, and that only factors in the action thru Tuesday!!!
Mr. Macro talks of massive upside potential to the stk mkt, and he believes a Greek default may already be mostly factored in to the Dow, particularly if the plan to recapitalize the Euro banks goes thru smoothly. That won't make team shorty pants too happy. I've told you the best tactical approach to the Dow here and now is to leave it alone. Shorting or buying seem equally wasteful. I think there will be some glitches and maybe a bit lower Dow, but I'm pretty sure team shorty pants is in for another major loss booking experience.
Remember the story "The Wizard Of Oz"? The Grand Poobah was revealed as a tiny puppeteer. The "Wizard of 2008" is what YOU all are living this week, in the gold and stock market, while the banksters go on an all-epic buying spree.
Team Shorty Pants blew their top yesterday when the Dow refused to go to new lows and fulfill their 2008 again wet noodle dream.
Life of a professional bucking bronco rider involves about 10 seconds of victory, and a lot of pain. Attention gold juniors investors: Get back on your horse, and get back into the command centre of your juniors spaceship. In regards to how many false countdowns you have to endure before the real blast off comes, the answer is: Who Cares, Not You. There is no limit to what you need to endure, so there is no limit to what you will endure. Failure is not your option. Anyone remember the TV show "The Prisoner"? That describes life of the gold juniors investor. Know, live, and endure it, all the way to victory!
In 1979 the dollar rallied 30% while gold rallied 100%. Most floor and flip traders shorted gold. Most failed and some went to the Salvation Army as a result of their performance. Oh well, this time they can try for a new loss record. Good news: The salvation army is still ready to welcome the new generation of idiots.
Click HERE NOW to view the mighty DBA chart, the agricultural ETF. Big HSR support sits just below where we are now, and the stalled congestion area/correction from the recent highs is shaped a lot like the one for GDXJ.
While [gold mining] juniors are ultra-high risk, and agriculture is ultra-low risk, in terms of the risk of the item going off the trading board, it's a solid positive that both are exhibiting similar chart action on the weekly chart.
DBA is still a bit above it's HSR support zone, while GDXJ has already moved into its HSR area at around $29. Agricultural players should understand that probably the only more insanely bullish COT report action this week that in gold was in wheat and corn. Fudd can rant and chant all he wants, but the fact is that he and photocopied heroes are going off the board long before wheat and corn ever do.
The funds busted out of food longs this week, like they were running from a house on fire, while the banksters bought all that was liquidated.
Well, almost all. Hopefully you bought some, or at least didn't join in selling the banksters your holdings.
The day will come when gold takes out $1925 and we can join together in giving the Wizards Of Oz (2008) tin cans a kick to the scrap heap, but let's not be pre-mature in celebration, and instead remain professional in our actions. You don't need to be buying monster size into this carnage, because it really is more of a sale than carnage, at least for GDX, gold, and silver.
Report Card Day. If you bought on the rise to $1900, you need to rethink, now, the whole "it's getting away" mindset, in terms of the amts of risk capital you commit to such ideas. Is natgas "getting away"? No. Did the Dow "get away" in 1999, as you look at the reality of it all, now? How about silver at $50, has it "gotten away"? No. But now the dollar is "getting away", correct? Hmmm.... Don't beat yourself to buy every "point on the gold grid in size, hoping it turns '. That's why I mix range pgens with foundational pgens, and you can see how easily it is working for me in silver. If it looks like we might "pop higher", I'll add a quick range pgen as a "booster". If it doesn't happen, who cares. It's back to the foundational buys. The very last thing on the planet any investor needs to worry about is price "getting away". Worry about trading smaller than you know is rational first, and fulfilling your "it's getting away" fantasies later. Much later.
Have a great week-end.
Thanks!
Cheers
St out