JWU AUG 7

Aug 7, 2013

 

1.   Anyone who lives outside of the stone age uses materials that are mined.  Mined.

2.   All companies use products that are mined.  All governments use products that are mined.  Almost all individuals use products that are mined.

3.   The Gman’s specialty is biting the hand that feeds.  No industry is as berated as the mining industry, and the Gman is front & centre in the bashing campaign.

4.   The banksters love gold, to the degree that they probably rub themselves with it in private at night (I’m not joking), but in public, they bash it to the maximum degree possible, to buy favours with the Gman, and to keep control of it, to themselves.

5.   A downtrend is a process of lower minor trend lows, and lower minor trend highs.

6.   The relentless naked shorting, & mine bashing propaganda operated by Gmen and banksters, have created an equally relentless downtrend in junior gold stocks.  

7.   To view the key GDXJ downtrend chart, I’ll ask all juniors marines to please click here now.

8.    Well, perhaps that was a typo.

9.   To view the correct chart, please click here now.  As some of you know, and all of you should know, I regard the GDXJ chart as arguably more important right now, than even the gold bullion chart.

10.              In the big picture, everything answers to monster HSR zones on the gold bullion chart, but on rare occasions, price patterns like giant h&s events can put other items in the spotlight, for a period of time.

11.              The downtrend line on the GDXJ chart is not shown on that chart, but the stokeillator is.  Note the 55 stokeillator “handle” that is highlighted.

12.              Now, please click here.  The GDXJ stokeillator is down to 28, from 55 just yesterday!  Patience is required, but not as much as a lot of investors think.  A dash of patience versus a dollop of analysis goes a long way….

13.              Note the downtrend line on that chart.  A move above that line would be highly significant.  It’s the first step towards creating a pattern of higher highs and higher lows.

14.              I work with people’s minds, in the market, following a lot of charts, economic reports, liquidity flows, far more than most analysts, but first and foremost, I get into people’s market minds. 

15.              The mindset of the average investor, as price approaches HSR or a major trendline/price pattern (think GDXJ now) is what suggests to me that the next move will be up or down.

16.              The good news, like it or not, is that the overly-bullish sentiment that appeared at $1320 - $1340 is already totally worked off; the gold community as a group is back in the “we’re going lower and I’m demoralized” zone.  That tells me that $1266 HSR has a good chance of creating a meaningful rally.

17.              I doubt that many technicians will care if GDXJ takes out that downtrend line.  The ones that notice it will be too afraid to buy, and they’ll get into a ridiculous debate about where a pullback would occur, while promising to buy that pullback.

18.              That’s exactly what happened in late 2009, as gold blasted up from an h&s bottom; analysts surge forwards to analyse where gold would pull back to.  That’s stupidity in action. 

19.              Likewise, if GDXJ takes out the 4 touchings downtrend line, don’t listen to the idiots that race forwards to analyse the pullback.  You should already be in, and focused on setting your sell points in your pgen, while cheering for a pattern of higher highs and lower lows to begin.

20.              The love of a gold stock parabola is a primary driver of the gold community, but perhaps the understanding of mining is an even bigger driver?

21.              There are a lot of cost push inflation drivers in play now.  Even the Catholic Pope is talking about the need to rectify “low wages”.  Prices are rising, and more drivers are arriving to assist in the cost push inflation “job”.

22.              Mines are hated, by those they feed, and gold mines are hated most of all. 

 

Gridtime! As you move out, onto the gridlines, to do battle with the mine haters, keep 4 things in mind.  First, keep buy-side HSR at $1266 for gold in mind.  Second, keep some short positions in mind.  A rally will come, but only a trend of rising minor highs and rising lows defines that rally as an uptrend.  As price rises, don’t assume the bottom is in and parabola time is here to stay.  Assume you are a seller into strength, with professionalism, and may include a degree of shorting, to maintain sanity and minimize the use of your vomit bag.  3rd, keep my daily chart stokeillator in mind.  It’s like the tide of the ocean.  Currently at 28 for GDXJ, it suggests the time is near, but not quite here, to beat on the dollar bugs with your junior gold stocks club.  Fourth, keep the red 4 touchings downtrend line in mind, and understand that an upside penetration could be a bullish game changer.  I’m going to be putting up a GU Leverage site today.  It’s going to be for leveraged traders who want to swing trade GDX and GDXJ, either directly or using DUST/NUGT.  I’ll be taking all the trades myself, using 3:1 leverage on GDXJ.   Average time in will be about 5 days per trade.

 

Thanks!

           Cheers

           St

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