jmu MAY 10

Juniors PGEN Marines Update (JMU).

(Pronounced “JAYMEW”)


 May 10, 2016


 Junior PGEN Marines Update 


  1. Another great week for you and your junior mines is underway, so please click here now! That’s the daily chart for the Chowmeister, aka Chow Tai Fook, the world’s largest retail jeweller.
  2. How goes Chow, as a rough rule of thumb, is how goes your mines. Chow started grinding higher in mid-January, and guess what happened then?
  3. Correct: GDXJ began rising.  Chow looks almost ready to launch another upside move.  Note Tony the Stochastics tiger at the bottom of the chart.
  4. I’ve told you before that if Chow stages a more aggressive move higher, your mine stocks may give you a nosebleed from the action they show you. Remember that statement.
  5. Meantime, please click here now: That’s the daily Northern Star chart. This little bull era pitbull is part of my Thunder Down Under portfolio of Aussie gold mining champs.
  6. I’ve suggested that gold may still have further to run above $1300 before the “real” sell-off of pain that the gold community has been dreading begins.
  7. In the case of Northern Superstar, as we’ll call this ode to low AISC and usable cash flow, note the upper trend line that price is approaching now.
  8. The final part of this rally could see price blast right through there! Regardless, junior pgen marines at this point need to be in trading position sell mode.  Core positions and trading positions can be bought via pgen to zero in a $5 to $3 pgen with 25 cent increments as part of the overall pgen to zero fun.
  9. Please click here now: That’s Endeavour, one of Goldlion’s key picks he set for the Top Ten Takeovers Portfolio years ago.
  10. It was one of a small number of juniors that began rising in 2014, and that catapulted higher after Janet’s rate hike.
  11. Like a lot of Goldlion’s stocks, it’s staged a five bagger advance from it’s lows. For another look at it, please click here now: When stocks stage not only five bagger advances, but those advances launch them to $18 a share, it’s important that you bring a sizable amount of professionalism to the investing table.
  12. You don’t want to be like the gurus that missed the entire ride while babbling about bear markets and other assorted poppycock because they are too stupid to understand the global asset risk curve.
  13. Gold stocks have been in a 20 year bear market against gold. Gold stock bear markets relate to various levels of risk-on versus risk-off in institutional play, and to the degree that inflation is a factor in the institutional risk-on/off mindset.
  14. The good news is that Endeavour will probably rise to hundreds of dollars a share as the bull era ramps up, but trying to trade it is becoming less and less of a good idea. Core positions need to be held with an iron hand.  
  15. I would sell my last tranche of trading positions at $30, and sell 15{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of the core at $50, and another 15{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} at $90. Other than that, there’s not much to do for Endeavour shareholders now, except hold out your bull era champagne glass, and watch it get filled!
  16. It’s very important to understand the global assets risk curve. The Western gold community has a lot of bad memories of the 2011 – 2015 period, and as they look at the COT reports they are nervous.
  17. Money managers like Stan Druckenmiller were in dramatic risk-on mode in 2011 -2013. Now they are in massive risk-off mode.  China’s gold import platform was run by as a giant protection racket scam.  This is not at all the same kind of market that it was in 2011 -2103.
  18. A different set of players are involved, and the banks can’t sway them out of positions the way they could their marks in 2011-2013 with margin calls on the CRIMEX and phoney import shortages in China.
  19. Most of the money managers who bought gold in 2009 – 2011 bought gold as a risk-on ticket to make fiat profits. The players involved now are unleveraged and view gold as a risk-off play.
  20. Think about the US stock market in 1980. If you tried to top call it, you were left in the dust of a risk-on era that lasted 20 years.  Now, you are perhaps mid-way through a risk-off era, with inflation only barely leaving the starting line.
  21. On that note, please click here now: That’s the daily GDXJ chart, with the H&S top pattern shown. Price broke the neckline today, and in the 2011-2013 period, it would have probably fallen $3 from there on a day like today.
  22. Instead, it blasts right back up through the neckline. The point here is not to try to cheer GDXJ higher, although that can happen.  Price is getting near a point where a more significant sell-off occurs, although it is probably a fair bit higher than here.
  23. The point IS that YOU are at the end of a 20 year bear market in gold stocks and in some VERY good company on the buy-side. Of course the banksters will drop some hammers down.  The key here is to set iron clad core positions.  You can’t flip those out based on fear of the banksters.  I use a fixed allocation to shorting to manage the hammers.  Some of the allocation I don’t cover off unless gold stocks actually blew out the lows.  Don’t use tactics to try to get back into core positions you blew out.  Use intestinal fortitude to hold onto those positions after you rebuy them as soon as possible after you blew them out, with short postions/put options to manage any downside action.
  24. Gridtime!  That’s the daily chart of the SIL silver stocks ETF.  A second H&S top has been thoughtfully painted onto the chart, by the bankster scum.  Note what happened when price broke the neckline of the first one.  YOU may recall how maniacally the gold community top-called that area.  This top carries more downside implication but you need to fight through that.  Value buying areas are not areas where trading should be a big part of your play, even if price is going to new lows.  The obsession with avoiding a decline and buying at some magical low wiped out 95{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of the entire Western gold community.  Are you next on the hit list?  Let’s hope not.  A move under $32.30 on the SIL chart could open up a deeper correction, and so be it, if it happens.  It’s more important to be able to buy under the 2015 lows, if they impossibly happen, than it is to avoid a decline to them.  Keep that thought in mind.  Stan Druckenmiller has it in his mind.  Let’s have it in yours.  I’ll see you out there, on the gold stock gridlines!


Kirk Jr. on the gold explorers bridge, out! 



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