Oct 7, 2011
The Dow is trading over 11,050 right now. Bye bye shorty pants. Gold tagged 1667, and silver took a 2ndrun at the 32.50 area, a 2nd chew at that resistance zone of toilet paper.
GoldLion jumped with glee yesterday, exclaiming, "the idiots are buying my stock at a 30% profit for me, just from what I bought on Monday!". Some juniors stocks actually rose 50% this week. Your trading PGENS are already in kachingo mode, while the wiener ranch prepares to sing "one more for the gipper", and starts chasing price.
While each week I pick up new converts to the idea that if you want to make it in the market you need to use a PGEN, and gold is the ultimate asset, sadly, every week an even bigger number of investors arrive on the turnip truck to serve as bankster marks for years to come, buying strength and selling weakness with mighty price plops of greed, followed days, weeks, years or decades later, with even mightier loss booking frenzies. If you chase price, the banksters will take you apart. End of story.
Uranium put on a show stopper move, and one blown reactor and a grandstand encore performance of "no nukes forever" sung by Angela "euro to zero" Merkel didn't work as she expected. The Chinese don't speak much German, nor are they much interested in her rants, unknown to her. Uranium didn't go off the board after all, and nor did gold, silver, energy, or food. Angela will be off the board, and so will all the other freedom robbers, long before the mightiest assets come close to going off any board. I say: Ha Ha Ha.
Is your investment foundation based on technical analysis, fundamental analysis, or.....gold? Be prepared for the biggest gold sales, rather than thinking about the upside.
You don't need as much gold as you think, to get richer, but you need to be sure you don't blow out anything you do hold for toilet paper, when the banksters flip the fear switch to on. Like the grim reaper in the night, they come for your gold.
The intensity of the grim reapers' actions will only intensify going forwards. There is no coming "free money ride while juniors skyrocket forever and the world sees the light of how great gold is". All that is coming is far more intense bankster action to dismantle all you are, financially, and emotionally.Are you prepared?
My disdain for what the top callers did, which is create a massive transfer of stock from the fundsters and gold community to the banksters, is directly related to the fact that they refused to put any kind of number on how much gold and related items should be sold, after price-chasing it at higher prices, and lying about the purchases.
Some are now claiming their technical analysis, cycles analysis, and even fundamental analysis, is "bigger than gold". We're all going to our coffins, and so are many many coming generations, long before gold goes into anything resembling a coffin. The dollar will be in a coffin long before gold signs off, and arguably before YOU sign off, although I doubt it, and the very real problem for the top callers, is that the gold punisher might put them in their coffins long before their natural time.
Have you ever noticed that the teckies who tell you how you are going to be wiped out in gold bullion always have a hot junior for you to buy, and dey pwomise they got no mownie fwom da pwomoter? Let's see now, gold bullion is going to wipe me out, but a 2 cent junior whose management team just died in a plane crash, and is now led a by a geologist who specializes in sodium, is going to make you richer forever and ever, right? Hmmm...
Wedges. Teckies love drawing wedges, when no wedge exists. They don't know what defines an uptrend or downtrend, so they just make one up to fit their greed or fear, and enhance yours. There's a real wedge on GDX. Click HERE NOW to view.
I told you that the head and shoulders pattern on GDX that projects $100 (GoldLion thinks we're going to $150) is sloppy. It's not like the all-magnificent Michaelangelic pattern that occurred on bullion between 680-1033. But it's there.
Just as the pullback on gold to $1000 after the breakout caused fear and no buying by most of the gold community, it is the same action with the GDX pattern now. It has a higher chance of failing because it is sloppier. So, if I rate the pattern on bullion a "100", what would I rate the one on GDX? Probably about a 10.
How much weight, technically, would I give this wedge, or any other wedge of this size, appearance, and duration of time? I'd give it a 1, maybe a 2, but I doubt it. What rating would I give to the phoney wedges drawn by the teckies? The answer is a rating of ZERO.
"Silver is likely to go substantially up in the next decade." - Jim Rogers, 2011. "But what about the next 25 seconds, what happens then?" - Elmer Fudd Lifetime Investment Loser, Sept 14-Oct 7, 2011.
"This is the most serious financial crisis we've seen, at least since the 1930s, if not ever. We're having to deal with very unusual circumstances, but to act calmly to this and to do the right thing." -Head of Bank of England, yesterday.
"Sell all gold right now. Hurry, do it or you're going to lose everything, my micro tick chart painted by the banksters says you gotta sell all your gold now, and use maximum leverage to short the Dow because support just failed. Sell your house right now and do it with all the proceeds, or you're 100% finished. Who cares what the head of the bank of England says, he's an idiot and I'm the greatest options (bankster widgets) trader of all time, or soon will be, I think so. Sell all gold now and buy US dollars and Dow put options as your gold replacement investment foundation. Back up the truck." - The gold community's heroic top callers, every second of every day, Sept 14-Oct 7, 2011?
Technical analysis, and any analysis for that matter, has very limited application when it comes to juniors stock. The banksters can rip apart support and resistance levels like a chainsaw on ricepaper. Buying all the way to zero is the only way to properly accumulate these situations. If you show up late to the game, don't attempt to recreate what the trench buyers did in the late 1990s or a falling sword buyers achieved in 2008, with some sort of micro price range pgen using macro risk capital.
If you want in on the juniors ride, and want in with size, accept 90% drawdowns as part of your reality, or else accept that you may not get the size of position you want. There is no other road that takes you to your profits destination. All other roads lead to the cliff with you locked in your vehicle, and a tank pushing you over the side. Eat massive drawdowns or accept you might not get all the stock you want; those are your only choices, if you want to end the juniors ride in the black, if you are arriving in this market, at prices above the equivalent of GDXJ 5.
The only stupider claim the timers have made than attempting to flip trade you thru bullion in this crisis is their attempt to flip trade you thru the juniors ultra-high risk minefield. No PGEN to zero = No survival.
"I want to make 10,000 percent gains in juniors, but with no massive drawdowns" - Not you, ever. If GDXJ is going to $100, or to $1000, what kind of drawdowns await you out there? Enormous drawdowns. GDXJ has rocketed to 29 from 25, and already the lessons of the pre-parabola zone are being forgotten, and price chasers are talking about bargains and "possible reversals".
Click HERE NOW to view the weekly GDXJ box resistance chart. The teckies will tell you all about how "huge" the overhead resistance is so you need to sell everything and wait for a "breakout" over $43, or at least to well above where we are now.
Never forget that the support and resistance levels on a gold bullion chart are toilet paper support and resistance. There's no permanent damage to gold done by toilet paper, ever. Never has been, never will be. It is gold that chews its way thru support and resistance bands of toilet paper. Picture a pitbull chewing at your leg. That's gold on the dollar, and the pitbull has a lockjaw bite. It's not going away, ever, but you might, if you don't step up your ability to endure drawdowns, because they are going to get EXPONENTIALLY BIGGER in the parabola zone. Realistically, picture yourself 50-100 times more afraid than you were on Monday. That's really what's coming. Still think taking delivery and burial of items is a tiddly winks play? You won't for much longer, I guarantee you that, and you know I guarantee almost nothing.
GDXJ is not gold bullion, but it still faces resistance made out of toilet paper. The $31 area is a resistance, yes, and GDXJ will set about chewing thru that toilet paper. Think carefully about the best purely technical analysts, who really have little or no core positions. No matter what the price is of anything, they are maniacally focused on the here and now. The next big thing, in their minds.
Gridtime! The time came at $1478 to reduce the amt of capital you have exposed to trading short term moves, and increase the amt you hold as core positioning. The fact that gold moved from $1900 to $1500 doesn't change anything, and serves only as a training session of limited power to manage the coming downside smashes that will be followed by almost as violent upside action. The Bank of England wonders outloud if this is the greatest financial crisis of all time, while you are told to sell gold "because it might fall down" by leveraged idiots and gold traitors. Grip your gold ever-tighter, because the banksters gave you a less than adequate training session to manage the coming volatility.
Thanks!
Cheers
St out