JWU JUL 20

  Jul 20, 2013

 

1.     Bad News: I wanted to see you make 60{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} in 2 weeks, on your lowest SanGold PGEN to zero buys, but you only made 55{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} in 2 weeks on them.

2.     Please click here now.  Double-click to enlarge.  On solid volume of 3.8 million shares yesteday, SanGold, with no thanks to management, and 100{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} thanks to the PGEN TO ZERO, blasted to 14 cents.

3.    You don’t need to be afraid of buying a junior stock all the way to zero. 

4.    You do need to be afraid of averaging down in it. 

5.    Averaging down does not involve pre-set capital.  It involves an investor “willy nilly” deciding to throw good money after bad.  Don’t do that. 

6.    Please click here now.  That’s the gold explorers ETF, GLDX-nyse. From the present time and price, it needs to rise above $17 to end the intermediate term downtrend.

7.    Please click here now.  That’s the longer term weekly chart, and an upside penetration of that much more significant trend line could happen, based on the massive volume bar, and oscillator and technical indicator buy signals.

8.    Morris Hubbartt looked like superman in 2011-2012; every call he made worked.  When the market turned down, every call failed. Instead of superman, he looked more like: wienerman.  

9.    The reason?  Well… like many writers in the gold community, he may have allowed his hopes for gold to become his analysis of it.

10.                Having said that, he did post a very important chart yesterday, which is a ratio chart of gold against gold stocks.  It shows gold stock volume suddenly swamping gold volume, on a ratio basis, and that`s significant.

11.                If you use a weekly chart, the situation becomes even more interesting.  Please click here now.  Look at the size of this week`s volume bar!  That bar shows that the ratio of gold stocks volume against gold, on a weekly basis, is becoming ``surreal``.

12.                Why?  Likely answer:  Liquidity flows from monster fund clients of institutional super-brokers who have suggested an end to naked shorting and a beginning to buying gold stocks.

13.                To view an updated daily chart of the GDX vs GLD situation, please click here now.  Yesterday showed another massive bull ratio volume bar. 

14.                The bottom ratio line: Growth with safety is out, and rock and gold stocks roll is in, and the only question may be, are YOU in the band?

15.                Please click here now.  That`s another look at the weekly GLDX (gold explorers) ETF.  Note the enormous changing of the guard volume.

16.                I realize there are a fair number of charts I`m showing you today.   Remember how keenly most gold analysts showed you charts in 2010, and promised that your OTC bulletin board gold junior stocks, and theirs were headed to Pluto.

17.                Look at the charts I`m showing you today, with the intensity that you looked at their charts then.  So, please…

18.                Click here now!  Double-click, to enlarge this daily GLDX chart.  Yes, some indicators are “up there”.  Yes, volume is declining on the rally (but not against bullion!)

19.                I`m not telling you that “this rally is different, it`s the big one!”.  What I am telling you is that GLDX has risen into HSR at $13.66, AND into $14.72.

20.                That doesn`t deserve a professional investor`s attention.

21.                It commands it.

22.                Uptrends are defined by price rise above previous highs.  The first nearby GLDX high sits at $17.34. 

23.                The road to taking out $17.34 begins with a penetration into HSR defined by previous lows ($13.66 and $14.72) and that`s starting now.

24.                So…. Your attention is commanded now.

 

Report Card Day!  All the parabola-demanding bulls do is call the bottom and a vertical move to $5000, every 24 hrs, and all the bears do is scream that gold community investors who have 95{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} drawdowns in their junior portfolio could have 96{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} drawdowns, so they must sell everything now.  I`m not sure which group deserves the amoeba of the year title, but it is probably a tie.  Most current super-bears are ex-parabola demanders, but does any investor really understand?  No…. Volume is at least as important as price, and gold stock volume against gold bullion volume, is seeing bullish action.  That doen`t mean a free parabola begins on options expiry day this week.  Please click here now.  That`s the daily Tanzanian Royalty chart.  Price needs to take out highs to be in an uptrend.  When TRX fell to the lows of April and May, I noted that it needed to take out the $4.20 highs to begin an uptrend.  That never happened, and now it needs to rise above $3.49 to be defined as in an uptrend.  Even though TRX has rallied about 50{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} in 3 week, it`s not in an uptrend.  A rally is not an uptrend.  Minor trend highs need to be taken out to define an uptrend as in play.  Aggressive gamblers would be sellers here, in the $3 area.  Most of you are not aggressive gamblers.  You are accumulators.  $3.49 is your “my core positions might begin to gain in value for time, not just price” signpost. What YOU need to understand, when stocks are trading close to zero, in the juniors arena (down 70-95{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} from their highs) is that you can literally burn up more cash than the stock is trading at, using stoplosses to “call the turn”.  What is the better move, here and now, for YOU…. to place a 20{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} stoploss on your favourite junior stock that you have your eye on, after buying it here, or, to invest 20{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of the risk capital you are thinking about allocating, now?  5 stoplosses is five bullets in the gun, and if all 5 get shot, guess how many you have left?  Correct.  None.   Put one bullet in the heart of your opponent on the grid, not 5 in the air.  Thanks.

 

Thanks!

           Cheers

           St

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