JWU JAN 14

Jan 14, 2013

 

1.   Please click here now.  Do YOU like junior gold stocks?  Well, against gold ETF GLD-nyse, GDXJ just tagged the 29 gold cent mark.

2.   What’s particularly interesting is that there is big sell-side HSR in the 28 gold cent area, and it could be argued that junior stocks are trying break out upside from there.

3.   Look at the enormous volume bar yesterday that I highlighted.

4.   If you think that volume bar is big, well, you better fasten your seat belt before you click here now.

5.    Look at the mind-numbing volume on that weekly GDXJ:GLD chart.

6.   Please click here now.  That’s the weekly chart, and it’s only Tuesday of this week.  There’s still 3 more days of volume to add to that bar!!!

7.   Note the 3 fan lines that I’ve drawn in.  Fan lines on a weekly chart are questionable, but there’s no question that a move above the 3rd fan line would be viewed as bullish by big picture techicians.

8.   Gold land today is talking about the “big hit” on gold.  Hello, Earth to Mars: Gold just rose $70 on a full stokeillator cycle of the daily chart.  A sell-off is totally expected.

9.   Gold stocks rose far more strongly than gold or silver did.  Those who wasted time telling stories about China’s central bank gold swap buys never bought any gold or gold stock into $1228 buy-side HSR, $1200 round number HSR, or $1180 intermediate trend low HSR.

10.                So, rather than booking profit, they are telling “big hit” stories.

11.                Of course the banksters are heavy sellers here, but there are a lot of very bullish technical events on the long term weekly and monthly charts.

12.                The Dow is up about ½ of a percent today.  GDXJ was up 5{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} yesterday.  The Chinese stk mkt FXI is up 1{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} today, double the action of the Dow.  Staring into today’s GDXJ retracement while wondering how high the Dow might go is lunacy.

13.                Uranium and natural gas continue to move with synergy.  Cameco tends to lead the junior yellowcake stocks in direction, and it’s got an odd looking but very large head and shoulders bottom in play.

14.                Volume is picking up on the yellowcakes again.

15.                Basis the uranium fund U.to, watch the $5.70 area for a possible blast off.  Basis UNG-n, watch $24.10 for similar action.

16.                We recently saluted Jumbo Jim Bullard, St. Louis Fed President, for announcing that he’s a U1 man, not a participation rate playdough man.  Velocity rocks, everything else walks.

17.                Today, Jumbo Jim is joined by Rich “Double Barrelled Taper” Fisher, and we’ll take a moment to salute his excellence too.

18.                Fisher wanted a December taper of $20 billion, rather than $10 billion, and he’s on record today stating that even if the Dow tanks, he’s ready to rock and rock with Taper #2 at the January 19th Shark Janet Show.

19.                GDXJ record volume suggests that institutional anticipators are ready too.  I’m not sure how ready all the little Dow crackheads are. 

20.                In tomorrow’s GU I’ll show you how the Fed’s balance sheet is already contracting, and Double-Barelled Fisher says that any further increase in the balance sheet is “untenable”.

21.                Fisher thinks the Fed should pay off the banks to stop loaning out money too quickly.  That’s a scam, but it also shows you how afraid he already is of money velocity that could skyrocket.  

22.                To understand the short term gyrations in junior gold stocks, please click here now.  Gamblers could buy the current $33.40 buy-side HSR, on this 60 minute chart.

23.                Everyone else should cool it unless we pull back to $31.30.  A move under $31.05 wouldn’t be the greatest news in the world, but it would attract even more value players of size.

24.                On the upside, the banksters are capping the rally at $35.  A move above there could ignite a very powerful move higher, because of all the volume that occurred around that price.

 

Gridtime!  If the Dow implodes while Rich Fisher and Shark Janet unveil Taper #2, could junior gold stocks get hit?  Yes, but they handled Taper #1 pretty well, so I wouldn’t be overly concerned.  My strategy continues to be to book profits mainly in gold currency.  If the rally continues, I’m in.  If not, I can buy more anyways, whether my currency is gold or dollars. Juniors Gamblers could book profits in GDX “currency”.  Let’s hit the grid, and try not to overanalyse the situation.  Wealth is built from buys (AND SELLS RECENTLY!) in your surprise zone, not your analysis zone, in most cases.

 

 

Thanks!

           Cheers

           St

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