Aug 3, 2013
1. By 7am yesterday, mainstream economists were saying the consensus was up to 195,000 jobs, and they were expecting the print to come in at over 200k.
2. It came in at 160k. Gold surged after the jobs report.
3. Goldlion reminds you (and himself) that the POYG (price of your gold) was taken down to the $1280 level, by the banksters, before the jobs report release.
4. So, instead of surging $40 from $1340 to $1380, it surged $40 to $1320, and then ended up at Thursday’s low.
5. Bottom gold market line this week: The average investor ended the week demoralized. You survived or made pennies. And the chimps went home at 9am. With another fortune in their pocket.
6. After 9am, the market did nothing. It went nowhere, and by the end of the day, investors went home wondering what just happened.
7. While the gold community’s superbulls continue to forecast a parabola “any day now”, the bank economists continue to predict gold in the $1000 - $1150 range, in 2014.
8. A few of them think gold can rally to $1400- $1500, before that happens.
9. Trading gold stocks for gold, or for dollars, in a range, could be a very good trade, by definition, if gold becomes range bound.
10. The Fed never said it was thinking of tapering in September, but the banksters told the mainstream media that they would. It doesn’t matter that it was all a lie. What matters is that the taper caper took gold from $1750 to $1200, and the reversal of it has only seen gold rally to $1350.
11. The taper caper propaganda scam worked, and so you just have to apply additional patience to your $3000 POYG scenario.
12. Meantime, please click here now. That’s the 60 minute GDXJ chart, and the $38 area is where I’d be a nibbler, on the buy and short covering side. Note the convergence of HSR and trend lines there.
13. Please click here now. That’s a look at where the bigger action is. Junior gold stocks are nearer the higher end of the $32.84 - $44.64 range.
14. Please click here now. If GDXJ can blast over $44.64, then there’s a shot at the $50 HSR zone. That would make $44.64 buy-side HSR.
15. For now, I’d like you to focus on the $33, $44, and $50 prices.
16. Please click here now. That’s the daily chart for GDXJ against silver. Generally speaking, I want to be a buyer of GDXJ in the current area, but only very lightly.
17. If GDXJ were to fall to $33, I’d definitely want to be a seller of silver and a buyer of junior gold stocks, and junior silver stocks.
18. Please click here now. That’s a more direct look at the silver stocks action, against silver.
19. The bottom line is the minor trend uptrend line is broken, the technical indicators are flashing sell signals. I wouldn’t sell silver for silver stocks unless price drops to .63 on that chart.
20. Even then, I’d want to see the indicators move down the chart more, before nibbling.
21. Pros versus Joes: The joes love to talk about “growth with safety”. They talk about buying physical silver (fizz) instead of stocks.
22. What the joes really mean is they lost large on the stocks, so they want to blow them out at losses and pipedream a parabola for the fizz.
23. The pros understand that there is huge action, in the shorter term, to be had by moving back and forth between resource stocks and metal (or ETF/futures).
24. In yesterday’s GU update, I told you that the time is near, but not quite here, to move back into GDX, after I sold it in the $27 area.
Report Card Day. The same applies to junior stocks. Watch the action of the stocks both against fiat and against bullion. Buy the stocks when the indicators come back down. Another nice feature, of trading silver stocks against silver is that numbers are in pennies. Against fiat, the silver stocks ETF is $13 a share. Against silver, it’s 66 “silver cents”. Please click here now. That’s a 2 hour bars chart of the party, your party. There’s nothing wrong with riding the silver stocks gravy train from 56 silver cents a share, to 70 cents. That’s a sweet ride, and if .66 HSR burns, SIL could head down to the .63 zone. That’s where you want to think about buying. Can you imagine arriving in 2015, and silver is still under $20, but you’ve built up a mountain of ounces, by trading silver stocks against silver? I can.