jwu jan 10

Jan 10, 2013


1.   Hi ho, hi ho, it’s off to smoke more QE crack in their unemployment report pipes, all the money supply focused crackheads in the gold community, think they can go.

2.   Hi ho, hi ho, it’s on with the taper to zero, Shark Janet will go.

3.   “A top Federal Reserve official said he is "disinclined" to focus on December's jobs data alone as he considers whether the U.S. central bank should continue to trim bond purchases.  St. Louis Fed President James Bullard told reporters he was more focused on the drop in unemployment last month to 6.7 percent, from 7.0 percent, than on the 74,000 new jobs that were created, which was well below expectations..”

4.   Math time:  Rising M1V & MV2 + Surging euro economy + Resurging China & India (regardless of George Destroyos’ fantasy to wreck it) + modest US pickup = Taper to Zero in 2014.

5.   More math time:  Taper to Zero = Imploding Dow.

6.   Imploding Dow = Imploding Price Chasing Dow Crackheads.

7.   Taper To Zero = Surging Junior Gold Stocks.

8.   We salute the taper to zero, and we salute James Bullard, as he understands M1V and M2V, and we salute him because he, and those like him, are going to make YOU richer!

9.   Taper To Zero = Please click here now.  What is that?

10.    Answer:  That’s the GDXJ volume chart, using daily bars.  Look at today’s green power bar.  I drew your attention to the feeble volume as GDXJ drifted sideways going into today.

11.    Up days are bullish if they are accompanied by up volume, and that’s exactly what’s happening in GDXJ.

12.    This next series of charts requires a little more thought.  To view it, please click here now.   That’s just a raw look at the chart.  Note today’s little surge.

13.    Please click here now.  This chart shows the beautiful pull-back to buy-side HSR at $31.20, and the next upside sell-side target of $34.35. 

14.    Remember that number: $34.35.

15.    All I’m hearing from the QE Crackhead class in the gold community is, “one more smackdown, and then we’re on our way to free money party land”.

16.    The good news, for you, is that these cowards were too afraid to buy any gold stock into the $1180 lows, or the $1228 HSR, or the $1200 round number HSR.

17.    The huge number of “one more smackdown” idiots marching down main gold community street now, in a giant parade, makes that smackdown less and less likely, and a continuation of the January rally that I told you was coming…. Vastly more likely!

18.    The “one more smackdown” crew actually think gold rises just because they want it to rise.  They don’t care if India is offline, because they can’t do Grade 1 math, and they think all the institutions are going to rush back into the ETFs, based on a clam-baked theory from CNBC that Obombacare is going to result in QE5.  Obombacare might create a massive Mid-East war that kills millions of innocent civilians, but it won’t create QE5.

19.    What’s going on is a giant short covering rally engineered by the bankster-chimps, index fund placement, and big money fund placement based on rising m1v and m2v.

20.    When this rally ends, as the smackdown crew buys it, they are going to quickly need financial Obamacare….

21.    Let’s get back to what’s real: Please click here now.

22.    That’s the daily chart stokeillator and 14,3,3 Stochastics, for the same GDXJ chart.

23.    Look at the momentum-style buy signal, on the 14,3,3 series.  I’ve circled it in blue.

24.    Meantime, the stokeillator lead line is only at 65, and marching higher.  We can keep this rally rolling, but you need to act professionally, rather than telling cnbc crackpipe to infinity stories.  Sell into this strength, via pgen.


Gridtime!  The QE-expanded money supply is a glacier.  If a glacier sits there, it does you no good.  It needs to move.  Cheering for more size to the glacier is not going to bring back the institutions to the gold ETF arena.  That pipedream has been smoked.  It’s all over.  It’s gone.  The money supply glacier is more than large enough to create all the inflation you can envision, but it needs to get moving.  I think we can tag significantly higher numbers in gold, even before the titans of ton (India) come back on line… If I hear one more chump talk about the coming big us dollar rally based on rising rates, I think I’ll throw up.  Please click here now.  The dollar looks like garbage.  At best, it’s a wet noodle.  The dollar looks like a rotary phone, because that’s what it is.  The taper is your friend.  You’re entering a world where Chindian inflation matters, and a dropping unemployment rate is interpreted by the Fed as…… rising money velocity.  Nobody in the real POYG world cares how many jobs are added or lost.  They care about Chinturkian inflation rates, Japanese cost push inflation, the US employment rate as it relates to M1V AND M2V, and they care about selling, pgen lightly, into gdxj $34.35… Remember that number?

Kirk out





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