Oct 10, 2011
I'm in the Cayman Islands for a week.
Click HERE NOW to view the powerhouse MACD action on the gold cash daily chart this morning. Look at the action around 1660. That's head and shoulders bottoming action, but only a closing price chart shows it. The intra-day and candle and OHLC (open, hi,lo,close) charts don't show it.
Go gold! While the longer term charts remain overbought in many ways, so they have since gold $400. Aren't you glad you "sold everything" at gold $400, because it was "way overbought"? Hmmmm.....................
There's a reason that the funds I professionally manage have strict limits on what I can put into gold stocks or silver, vs gold bullion, and while it all boils down to risk, it also all boils down to the fact that gold bullion is the world's ultimate investment, and this is the ultimate crisis.
I'm not afraid of stocks, or silver, but you need to look down, not up, when building wealth. Look not at how high the item might rise, but how you can realistically act in the market if it declines beyond levels that you know are rational.
Silver investors and gold stock investors are more focused on how high their items might go, rather than maniacally focusing on buying them at the lowest prices, and that is a horrific error.
In a crisis, particularly an ultimate crisis, you need to be cautious about embarking on missions of pure greed. Own gold stock and silver as a compliment to bullion, not as an attempt to replace it, or your wealth could be the only thing getting replaced, by poverty.
Understand that the market is a fight, not an investment. When gold fell from 1923 to 1530, you got beat on. You are going to get beat on a lot more, and feel a lot more discomfort, as the crisis accelerates in time, and intensity, ironically, at a lot higher gold prices.
Understand, also, that the coming beatings you get to deliver to the dollar bugs are going to also accelerate in time and intensity, far more than those you receive.
But the bottom line is that it's time to stop asking why you are getting beat on at any point in this crisis, and just endure it.
I find it interesting that many governments speak of the banks needing to raise capital privately, while asking the banks to sell trillions in new govt debt (bonds). It's that very debt that is at the eye of the OTC derivatives hurricane, and the Gman is a far worse entity than the banksters could ever be.
Here are 3 magnificent charts of silver. First, CLICK HERE to view the 4 hr chart. Look to the left, in the May-July period, and you can see the overhead Gman toilet paper resistance in the $33-$34 area. Gold's little brother is working that area now. Look at the far right, and you see a little $26-$32 price blob.
Now CLICK HERE to view the daily close chart, where you can see the same head and shouldering action that is exemplified by the punisher herself. Look at the MACD indicator. Again, you are no longer a big seller or caller of tops, and you are scaling down the amt you sell into strength. You are a buying of weakness and an endurer of discomfort.
You are embarking on this strategy due to the accelerating nature of the crisis, and because you ARE working to become a professional market timer. The pro knows when to reduce the amt allocated to flip trading; that's what makes him a pro trader.
The amateur/idiot operates on a greed-fuelled ego, and thinks the 1500-1900 action demands he work even harder to time his way thru what he stupidly believes is gargantuan volatility.
All 1500-1900 gold is, is a training zone gift, and you better accept it as a gift, not a punishment, or you'll never survive what the banksters have planned for you in the real parabola zone.
The parabola zone is not nirvana. It's the opposite of nirvana. It's not going to be like 1980. It's going to be like all the emotional highs and lows you've experienced over the past 11 yrs compressed in time, and exponentially expanded in intensity. That's the reality of the parabola zone in the ultimate crisis,and I bet .01% of the gold community has any clue of what is really coming to them.
They are thinking nirvana, when a tornado is coming. The timers look to me like a guy who locks himself in a tin shed when a force five tornado roars at him and seriously believes he will not only survive, but destroy the tornado by blowing at it with his mouth. It's totally insane, and it's totally real.
You should be back in the "preppy zone", for both gold and silver this morning. When you get really pounded on, it's time to shut off the quote machine except for a once a day look to place orders. Missed orders are better than turning yourself into a sell button pounder.
When the price is moving in a range, you can "go preppy". You check in frequently. When gold is skyrocketing, that's when, and only when, you stare at the machine, and only sell orders are placed. Don't get carried away with "rebuys" or "missing out". If [you] are placing a lot of buys when gold is skyrocketing, turn the machine off.
Click HERE NOW to view the 3rd silver chart. This one is a one minute chart, and is a microcosm of the "up, up, and away" action that I'm talking about. If you are heavily invested in silver, when price soars, you want that chart in front of you. When price declines, put your buy orders in and turn the stupid thing off and throw your analyst hat in the garbage can.
Riding the parabola in 1980 was child's play for the pros. This parabola is going to test the character of even the toughest pros. You need to train yourself to turn the quote machine off at points in time. It's more important than mine reports or technical oscillators. Few understand. Few believe. Few survived 1980. I wonder what happens to them this time with their cracker jack box parabola timing kits?
Soybeans skyrocketed last night. Wheat and corn did well. I've mentioned beans as the "action" play of the three. Because beans are trading at around double the price of corn and wheat, you need to use wider buy increments. Remember that I had superman install a percentage calculator on the pgen. Some of you need to consider using that. Buying gold every $10 down at $400 is not the same as buying every $10 down at $1800, despite what the leveraged teckies say.
Food is not going off the board, but neither are the beatings on you, by your dollar bug opponents. It's a fight. How many boxing fights do you watch where the fight goes 10 rounds and one of the opponents threw no punches? Hello, knock knock, any money makers home? Just focus on winning the fight. Gold, silver, food, and energy are stronger entities than paper currency.
Gridtime. Let's get off the ropes. Yeah, you took a beating from the dollar bugs. So what. This is a fight. Now get off the ropes and knock these clowns out! See there, in the ring!
Thanks!
Cheers
St out