June 17, 2014


1.   The confession.

2.   Yes, I shorted GDXJ at $39 as it surged 15{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} higher in 2 weeks.

3.   No, I have no short positions on any individual junior mining stocks, and never have, and likely never will.

4.   Shorting individual junior stocks is something I consider to be somewhat vile.  It’s a bully act.  The banksters love shorting individual juniors with more stock than exists to be borrowed and legally shorted.

5.   I don’t believe small companies should be shorted in size that exceeds the investor’s net long position.  Businesses aren’t casinos, despite what the banksters think.  Shorting is important, but it’s more important to focus on buying low prices than shorting high ones.

6.   If you are net long an asset class at all times, you don’t need to play bully.  Options and reduction of an overall position, but most of all, the ability to buy lowest, negate the need to play bully.

7.   My long juniors position, overall, in terms of dollars, is currently about 90 times bigger than my GDXJ short position.   

8.   Regardless, strength must be sold, either by selling longs or by adding short positions.

9.   Please click here now: http://www.gracelandjuniors.com/images/stories/14jun/2014jun17gdxj1jwu.png  That’s the 60 minute GDXJ chart.  Volume is very bullish, but Janet will be on deck tomorrow, telling her stock market superboom stories about why gold must be sold, and the Dow will rise forever.

10.        There’s a mini h&s top in play, but that could also be a flag-like pattern on the daily charts of some individual juniors.

11.        On that note, please click here now: http://www.gracelandjuniors.com/images/stories/14jun/2014jun17mux1.PNG

12.        Let’s cheer that the McEwan Mining (MUX-NYSE) potential flag is a real flag.  A flag tends to fly “halfway.  So, the $2 to $2.75 move could be followed (if the flag is real) by a move to about $3.50.

13.        Whether you hate India, love it, couldn’t care less about it, or are some point in between all of that, you still need to follow what’s going on with the prime time mover of the gold price; the nation of India.

14.        Hiding from what’s going on there is an ego thing, and it destroys wealth, rather than building it, as 99{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of the Western gold found out the hard way (for them) and the hilarious way (for me) in the April – June 2013 beat down…  Let’s pay attention to what goes on there… for these reasons.

15.        India’s central banker chief, Raghuram Rajan (aka Doctor Ragman) today stated his views on the Iraq crisis; he says the Indian Forex reserves are solid, and he’s not worried about the crisis, and more importantly (to you), he says the Indian current account deficit (CAD) is very low and totally under control.

16.        Translation:  He’s severing his ties to the mafia, and he’ll accept a ModiMan chop in duties and 80-20 itself.

17.        Let’s check in with Goldlion now.  If you don’t own this stock, you may possibly be a guest in the Rubber Room Hotel.

18.        To check out of that hotel, please click here now: http://www.gracelandjuniors.com/images/stories/14jun/2014jun17ore1.PNG

Kirk on the gold explorers bridge, out!




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