Jan 25, 2014




1.   You are watching the QE money supply crackheads get destroyed in the Dow, after they got executed in the gold stock gulag, while you get richer.

2.   Yesterday, GDX fell by only 5 cents (ok, by 6 cents on my 24 hr charts), while the Dow fell by 318.  GDXJ fell a bit more, but not much considering the all-mighty super-rally it’s been on for 4 weeks! 

3.   Did you see the faces of the traders on the NYSE floor?  They looked physically ill.  Wait til Shark Janet accelerates the taper.  Then they are going to look like they have ebola.

4.   When, alone in the gold community in early December, I predicted a taper at the Dec FOMC show, and predicted taper to zero over the following 18 months or sooner, I stunned almost all of you, by telling you that the taper would be gold-bullish, gold stocks ultra-bullish, and Dow-wet noodlish to bearish, with a black swan Dow crash possibility.

5.   And, I told you that junior gold stocks would benefit most of all from the taper.  What happened?

6.   Well, the taper really happened, junior gold stocks really super-rallied, and the Dow really wet-noodled, and then tanked. Many gold juniors soared 100{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} in just 3-4 weeks!!

7.   What a week, and what a month!  Any questions?  No?  Well, I have a question, and here it is.  If Donald Duck sold most of his price-chased gold stocks in December, at massive losses, and he then price-chased the Dow with the proceeds, would that make him a QE Crackhead, or a QE Quackhead?

8.   Suggestion:  Don’t follow Donald Duck into his money supply worship pond, or you’ll drown.  Mr Duck isn’t very smart, but he does have webbed feet.  You don’t. 

9.   So: Follow Shark Janet in her money velocity race cars, M1V and M2V, on the junior gold stock racetrack.  Maybe it’s not quite space helmets time, but it is race car helmets time, and today’s report card day question is:  Have you got yours on?

10.                Mr. Macro is on deck.  As many of you know, Mr. Macro is my New York money manager pal who sold and shorted the top of the 2007 market, and bought the Dow alongside me, into the March 2009 tick lows (although I also bought gold stocks into the October 2008 lows and he didn’t).

11.                What are Mr. Macro’s thoughts, here and now?  Well, like me, fundamentalist master Mr. Macro believes all the major central banks are going to cut rates in 2014, and maybe cut them multiple times.

12.                Let’s take a moment, and salute Mr. Macro, and salute the possibility that junior gold stocks, after a needed pit stop, are going back onto the track, to make you even richer, as gold rises on the coming rate cuts from Shark Janet.

13.                Donald Duck and all the other QE Quackheads probably think the Dow will crash now.  I can’t even imagine how terrified these bustouts are, as they watch their newest price chase go 100{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} wrong, just a couple of months after signing up for it, thinking it was their ticket out of the gold stocks gulag. 

14.                The banksters promised them it was their ticket to ride, as they loaded all the morons into the Dow gas chamber, and took all their gold stocks for themselves.

15.                The Dow Quackheads think the Dow will crash because they have forgotten what a serious correction feels like.

16.                A crash is possible, but unlikely.  A serious correction is highly likely, highly overdue, and will be bought quite heavily by me, via FXI-nyse in China. 

17.                Let’s all stand now, and give Rich Fisher, head of the Texas Fed, a standing ovation, for publicly stating that he doesn’t care if the Dow Quackheads burn like ricepaper, he’s voting for gold bullish and Dow-bearish TAPER NUMBER TWO, on Jan 29.  That’s just 5 days away!  Are you standing and clapping wildly?  I hope so, and your gold stocks hope even more so!

18.                Remember the drill, so you partake in the thrill:  As a rally, be it minor, intermediate, or major, unfolds, move, via pgen, from risk on to risk off.  Don’t plop it.  Feather it. 

19.                For individual junior gold stock gamblers (99{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of you), that means selling some individual stocks for GDXJ, ZJG.to, or GLDX “currency”, then maybe selling that for GDX, and then selling that for gold ETFs or unlevered futures.

20.                Charts?  Please click here now.  Make sure you double-click to enlarge.  Start at the top.  Look at the semi-rare h&s top in the RSI oscillator.  Now look a step down, at the Williams oscillator.  Don’t panic; this is a daily chart.  When it comes to oceans, the tide goes in, and the tide goes out, and only team rubber room says the tide never comes in, after it goes out.

21.                GDXJ just rallied 35{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9}.  In a month!  It spiked over the green keltner supply line and the red power uptrend line is broken.  Price may just be establishing a wider uptrend channel.  The volume isn’t just gargantuan.  It’s epic.  Please look at the July-August timeframe.  Note the horrifying pullback that began around July 23, at about $45.  It took GDXJ down to about $35, near the June lows!  That’s where the general gold community, horrifically, went short gold stocks in a big way, while Rich “The Ace” Coppleson, Goldman’s powerhouse institutional broker, held his ground.  Then, GDXJ surged about 55{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9}, in just 3 weeks.  The technical similarities on the GDXJ chart now, to that July 23 high then, are very similar. 

22.                There is one “minor” difference between now and then.  Volume.  Bullish was decent during the July-Aug rally.  Now it’s epic.  It’s historic, record-setting, and beyond awesome.  The gold stocks starship is real.  And you’re really on it.  I suggested that gamblers could rebuy around buy-side HSR at $34.99, and we tagged $35.14 on Friday.  More conservative types should focus rebuys around the $33.40 zone.

23.                All junior gold stock champions should probably, and immediately, please click here now.  I already sold (a tiny bit) into sell-side HSR on this weekly chart, at $32.84 and $34.81.  Your next sell-side HSR targets are way up at $41, 44, $49, $54, $59, and $66.  A move above $42 should attract serious momentum player buying.

Report Card Day!  While Team Master Moron sits in the Dow, smoking their broken QE quackpipe, after blowing their gold stocks out to the banksters into the December lows to kiss the IRS pencil pusher’s feet, perhaps YOU pause for a moment of time, and you ask yourself, what does all this epic volume mean in gold stocks, and ask yourself if the enormous volume now coming into Indian jewellery stocks is telling you that somebody wants to buy all the gold your gold stocks can find, and much more than they can find?   Are you really prepared?  Is your M1V and M2V gold stocks race car helmet really on, ready to roar down a track paved with bull era gold?  Only YOU know the answer, to this key report card day question!

Kirk on the bridge of your gold stocks starship….out!





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