Feb 19, 2014


1.   Always let the first HSR fish get away!

2.   On that note, please http://www.gracelandjuniors.com/images/stories/14feb/2014feb19gdxj1.png

3.   Double-click to enlarge this 2 hr bars chart of GDXJ.  Since the December lows in the $28 area, GDXJ has not violated even one of its minor trend lows.

4.   Watch the $39.75 number.  To keep the pattern of higher highs and higher lows intact, GDXJ should not trade under there, or it will scare institutional money managers a bit.

5.   You had your FOMC show today.  Now the show is over.  Maybe it’s already time to consider getting focused on reality now?

6.   Reality is that this is a gold jewellery era.  Not a FOMC gold gramsRus kiddie parade.

7.   India would have bagged the 1500 tons marker for 2013 if the banksters and the Indian mafia hadn’t rained on their gold demand parade.

8.   Let’s assume that various money managers and Western super-crisis gurus sell a few more tons of ETF gold in 2014.  Who cares. 

9.   They blew out about 900 tons in 2013.  There’s only a total of 800 tons left in GLD-nyse.  In the month of May alone, India demanded that much gold.

10.                Granted, the banksters and the Indian mafia, lead by CP Chidambaram, ripped them off and gave them only 160 then, but this is a new year.  Don’t let the bank econs make you overly scared for your gold stocks on FOMC game days.

11.                If gold goes lower, institutional money managers are going to view that as cutting production from mines even more, and they could buy your junior gold stocks even more aggressively than they already have.

12.                At the same time, don’t join the rest of the golden gurus in rant-chanting your stocks higher, after they’ve just rallied 100{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9}!  Price falls harder than it rises. 

13.                Much harder.  After your stocks rally 100{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} without a rest, you need to be prepared for them to easily retrace 40{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} -60{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of that.

14.                Please http://www.gracelandjuniors.com/images/stories/14feb/2014feb19gdxj2.PNG

15.                This is a second look at the two hour bars GDXJ chart.  You’re in the junior stocks casino.  Not a growth with safety pipedream.  The bottom tactical line:

16.                I don’t care what fundamentals are behind any rally in the junior gold stocks arena, all junior pgen marines need to be expecting and prepared to handle a minimum of a 50{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} retracement of that rally at all points of time.

17.                The $36.86 HSR is roughly where a 50{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} retracement would take GDXJ now, using the highs hit in the $45 area as the high point of the rally.

18.                Quite frankly, given the fact that the “Golden Injuns” are just barely starting to come back on line, a 50{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} retracement is probably far too conservative a marker to use.

19.                Those of you who joined me in selling gold stocks for gold kept yourself in the game as gold rallied, and are building buying power now, as GDXJ slips against gold.

20.                Please http://www.gracelandjuniors.com/images/stories/14feb/2014feb19gdxj3.PNG

21.                Against gold, the 30.76, 28.11, 27.00, and 25.61 areas are where I’d sell gold and buy GDXJ or individual junior gold stocks.


Gridtime!  You know that most investors in the gold community got totally carried away with this rally.  I told you to wait for the pain.  The pain is isn’t really here, but team rally is already talking about today’s gold stock “crash”, whereas yesterday they all promised themselves free money in the sky forever.  I’ll be taking buy-side action at all four of those minor HSR zones, selling gold for GDXJ, if price goes there, and the question is, have YOU got your pgen marine combat boots shined, and ready for action on the grid?





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