JWU. AUG 10.

Aug 10, 2013

 

1.    Vlad “the impaler” Putin is focused on maintaining a 13{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} flat tax in Russia.  Barrack “the wannabe commie” Obama is focused on arresting Ted Snowden, and giving not one cent of QE to moving Tesla technology to low-cost American cars, while bragging that those making minimum wage while working 15 part time jobs at the same time, are members of the American upper-middle class. 

2.   We’ve reduced oil (but not gasoline), from $110 to $105 a bbl, to help all the poor people.  Isn’t that great news?” –Barrack Obama, Aug 9, 2013?

3.   When Albania has lower tax rates than America (it does), you need to wonder if the G20 is now the socialist/commie bloc.

4.   In the meantime, thanks to the Golden Tie for noting that Shinzo Abe could be about to take the main stage of the super-crisis show.  He’s got to make a decision on increasing the consumption tax from 5{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} to 8{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9}.    

5.    Japan’s Gmen sport a 230{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} debt to GDP ratio, and if he doesn’t raise the tax, global rating agencies could downgrade Japanese debt.  If he hikes the tax, he could send kill economic growth.

6.    While the monthly yen chart looks like it can continue to rally, Shinzo is likely to ultimately order Kuroda to take the printing presses to warp drive, and that’s good news for your junior gold stock charts.

7.   Please click here now.  Double-click to enlarge.  That’s the weekly chart of the Dow versus GDXJ.  I don’t normally draw chart patterns on oscillators and technical indicators, but these Head & Shoulders top patterns were too good to pass up.

8.    I may or may not have the lowest average entry price in the world for GDXJ, but it’s pretty close to current levels, thanks to the PGEN.  I never thought I’d be buying GDXJ at these and lower levels, but, here I am, and…. Here You Are.

9.    The good news is that GDXJ looks like it is setting up to absolutely crush the Dow, on a weekly chart basis.  I don’t know if it’s possible to create a more horrific chart than this one (and hence a more spectacular one for junior gold stocks).

10.              On Monday morning I’m going to sell some physical gold that I bought at $1300 with silver I sold at $31.  I did that early 2011.  Gold is $1300 now, and silver is $20.50.  My profit is about 50{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} in ounces of silver.

11.              The reason I mention this is because it was late 2010 when I issued my “loss of sanity” call for the gold community, in regards to their price chase of gold stocks.

12.              When silver is blowing gold off the map, gold stocks are blowing everything off the map.  When silver tanks against gold, gold stocks usually do even worse.

13.              The decision to move back into silver here is not a light one, partly because I consider silver to be a very risky investment, compared to gold.  The implication is that gold stocks are set to begin a period of massive outperformance, against the Dow, against all fiat, against gold, against silver, and pretty much against everything.

14.              I’m not seeing any evidence, yet, that silver stocks will dramatically outperform gold stocks, but they seem set to perform in a similar way to gold stocks.  If you’re a silver stocks buff, you want to be in silver stocks.  It’s that simple.  If you like gold stocks, stay/go there. 

15.              One bit of concern is that the chimps (banksters) piled on about 40,000 contracts of gold through Tuesday, on the comex.  They did add more than 10,000 longs, but the concern is they added the shorts on price weakness, which is very rare for them to do.

16.              The bottom line is the charts look bullish because the chimps want them to look bullish.  Price goes where the chimps want it to go, not where the charts suggest it will go. 

17.              Morris Hubbartt calls volume the breakfast of gold stock champions, and I agree.  Bullish volume is gargantuan, and that suggests institutional buying.  The way most major chimp games work, is a 4 stage process.

18.              First, they crush all the retail investors, and leave them crushed (done in gold stocks).  Once they’ve completed their accumulation, they work on getting the retail investors and price chasing funds to go net short, while telling institutions to dump their short positions (done).  That creates a short covering rally, and the chimps use that rally to tell institutions that the bottom is in, and it’s time to buy.

19.              It seems impossible that the chimps would blow gold stocks to new lows at this point in time, but their comex liquidity flows suggest anything is possible.

20.              I’ll add light short positions in the $45 area on GDXJ, but I’m not really interested in offloading any longs here “to get it back cheaper”.  I’m looking for an intermediate trend move to the upside, and whether it starts here, or from a lower price (with me even more long than I am now), I really don’t care.

21.              Please click here now.  Double-click to enlarge.  That’s the explorers ETF, GLDX. Note the minor trend highs of $16.48, $17.34, and $23. 

22.              It’s critical that GLDX rises above $16.48, to prove that the trend of lower highs and lower lows is over.  A rise over $17.34 opens the door to  a rally to $23.

23.              At $23, GLDX will have rallied almost 100{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} from the bankster-created lows.  Keep that in mind when price arrives there, and you announce to the universe how high gold stocks must go from there. 

24.              Remember that an out-of-the-hole move produces a gargantuan amount of percentage gain, for the banksters, and for me, because I bought so much stock into these lows.  If I’m up 100{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} in a very short period of time, I’m going to look to park a lot of that party pack into bullion, for a long, long time.

 

Report Card Day:  Please click here now. That’s the weekly gold explorers chart.  Gold stocks rock.  Gold stocks rock. And yes, gold stocks rock.  Weekly chart fans need to book profits at $19.68 sell-side HSR, via pgen, and at $25.97 HSR, also via pgen.  Can you imagine watching me book 100{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} gains in the $20-$25 area on GLDX, while you buy there, predicting a parabola, and then the chimps blow it through the lows in 2014, and take gold under $1000?  I can’t imagine that, and let’s hope you can’t either.  That’s what’s a called:  The PSZ.  That’s your personal surprise zone, and…. it can really happen.  Don’t sell stock because “it might fall down”.  Sell stock because you have a big profit.  What happens to gold, and gold stocks, in 2014 is unknown.  You hope the ultimate lows are in, but you don’t bet on hope with real risk capital.  Have a super week-end!

 

Thanks!

           Cheers

           St

This entry was posted in JMU. Bookmark the permalink.
Translate »