Apr 19, 2014


1.    As a junior pgen marine (an investor focused on junior resource stocks, via pgen to zero), the good news is that when gold marches higher, junior stocks tend to lead the parade. 

2.    The bad news, of course, is that when gold declines, juniors look like even a price of zero will not serve as a floor to halt the decline.

3.    That’s why God invented vomit bags.  The question is, have you got yours?

4.    I don’t ridicule the gold gurus just for the sake of ridiculing them.  I use them as a serious contrary indicator, to make your richer.

5.    As you are aware, the gold gurus, a general group, are currently engaged in a lemming-like chant that they know there is “one more big decline, and then we go straight up to the honey pot zone!”

6.    One guru, who apparently calls himself the golden savage, predicted in the summer of 2013, as the Indian mafia hammered the gold jewellery community there… well, he predicted gold would be back at $1923 in “3 to 4 months”. 

7.    How he could envision gold blasting higher while India was locked in a dungeon, I can’t understand, and obviously he didn’t understand either, but now he’s a card-carrying member of team “one more hit, and then it’s party time!”

8.    Sadly, these gurus don’t have a clue what they are talking about.  They voice their feelings about gold, not liquidity flows into or out of it.

9.    Speaking of liquidity flows that really matter: Do the banksters think there’s “one more hit, and then we go vertical” ? 

10.  For the answer to that question, please click here now: http://www.gracelandjuniors.com/images/stories/14apr/2014apr19cot1.PNG  

11.  The banksters are now carrying almost 100,000 longs in silver.  That doesn’t mean silver is about to go to $1000 an ounce, but it means a solid rally is likely near. 

12.  100,000 contracts is not a lot of money for the banksters, but in terms of the silver market itself, it’s a huge long-side commitment.

13.  Please click here now:  http://www.gracelandjuniors.com/images/stories/14apr/2014apr19sil1.PNG   That’s the SIL-nyse ETF daily chart, and there’s no question that the technical picture is one of a horrific h&s top, but it’s also true that the top bankster algo traders are master chartists.

14.  If the technical picture is so horrific, why are they such strong buyers of silver, here and now? 

15.  When it comes to COT reports versus charts, COT reports rule, because liquidity flows rule.  I have no idea what the algo trading scum have planned, but I do know they are strong buyers.

16.  Please click here now: http://www.gracelandjuniors.com/images/stories/14apr/2014apr19cot2.PNG   That’s the liquidity flows for gold.  The picture also shows the banksters adding longs.

17.  Another news service announced that Pakistan has ended the ban on gold imports, which is solid news.

18.  While the banksters add longs in gold, mega longs in silver, Pakistan embraces gold imports, the gurus short gold and silver, and sell more holdings to the banksters.

19.  If you notice, after the gurus say, “one more down”, it’s always “and then we go vertical”.  I’m not seeing anything to suggest that yet, but GU subs (most of you) know that Japan could become a global cost push inflation trigger, sooner rather than later.

20.  Please click here now: http://www.gracelandjuniors.com/images/stories/14apr/2014apr19j1.PNG  

21.  That’s the GDXJ weekly chart, with the RSI indicator highlighted.  You should know that when gold goes south, the bank bullies naked short junior stocks, and the decline becomes ugly.

22.  Having said, that, there is significant non-confirmation in play on that chart.  The RSI indicator is in an uptrend now, and is suggesting a “price catch up” event is near.

23.  Please click here now: http://www.gracelandjuniors.com/images/stories/14apr/2014apr19jgold1.PNG   I call that the Jgold chart.  It’s GDXJ versus gold, via an ETF.  You can see that GDXJ stomped about 42{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} higher in 2 months, from the 24 area to 34.  That’s a nice move, and parking some J in gold into that strength allows junior players to buy it back now, in decent size.

24.  Please click here now: http://www.gracelandjuniors.com/images/stories/14apr/2014apr19j2.PNG   That’s the J chart versus American fiat.  It’s true that Sir J gained a little more against fiat on the way up, but it also lost more on the way down.

25.  Report Card Day.  Note the neckline on that J fiat chart.  What happens if GDXJ doesn’t break the neckline?  What happens if the banksters bought that mountain of gold and silver this week, for immediate upside action that begins on Monday?  What happens if GDXJ, gold, and silver all blast higher while you’re standing there soaked in fiat?  When price is rising, it’s not that simple to sell and stand aside.  When you use gold rather than fiat, for some profit booking, you are in the game at times like this if it blasts higher (stunning about 10,000 gurus).  If it goes lower, your gold still gets you almost as much more stock on the buyside as fiat does.


Kirk on the base currency bridge of champions, out.





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