JWU JULY 12

July 12, 2014

      JWU PROS VERSUS JOES UPDATE

1.   Please click here now: http://www.gracelandjuniors.com/images/stories/14july/2014july11mux1.png  Double-click to slightly enlarge.

2.   My average cost of entry on McEwan is about the current price of $3.  Unfortunately, I didn’t focus on it in enough size, during the 2006 - 2008 meltdown.  I focused more on one of its rivals, Tanzanian Royalty (TRX).

3.   TRX melted from about $9 to $1.58, and I bought it via pgen in the $160 -$2.25 in size, but MUX melted from roughly the same highs, and fell much harder, down to 38 cents.

4.   That’s a key theme of how I recommend you operate in the market, and particularly the juniors market: Some stocks you will buy at impossibly low prices in a fair amount of size, and others rise before you buy all you want to buy, and some you don’t allocate enough capital to the overall program, but…

5.   The key to operating profitably in the market is to let a stock’s decline into pre-set buy points determine whether you buy all you want to buy.

6.   There are thousands of self-appointed gold stock analysts running around the gold community, right now, each one crowing about how high this stock or that one is going.

7.   This is not a time to perform analysis of junior gold stocks.  It’s a time to hold core positions and book profits on trading positions.

8.   The number of gold community investors who “knew”, going into 2013, that a taper and a decline under $1500 was impossible, is not just in the thousands…all told, around the world it’s probably in the millions.

9.   Those same investors, by the end of 2013, unfortunately, “knew” that gold stocks were in a “bear market”, and the tax losses needed to be booked, and the Dow needed to be bought.

10.        Now, this same crew of thousands, and arguably millions of investors, suddenly “knows” that gold stocks should be bought, after GDXJ has rallied 50{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9}, in a month, and is moving at an annualized rate of 600{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} gains a year.

11.        Please click here now: http://www.gracelandjuniors.com/images/stories/14july/2014jul12trx1.png Truly gargantuan profits have been made by the banksters, and hopefully by you, on buys placed in 2013 in your personal horror zone. 

12.        Not all the junior stocks have responded.  Some are “brain dead”, and not moving with the sector, out of the gulag hole.  That’s not a surprise, given the damage the naked shorting scam did to so many gold & silver companies.

13.        Nobody who failed to buy, or at least hold their positions, in Dec 2013 should be making any grand statements about what is coming on the upside for gold stocks.  By definition, they don’t know what they are talking about.

14.        Selling into strength is not “calling a top”.  Likewise, just because charts look outrageously bullish (they do) and price is rising doesn’t mean the proper investor action is to buy now.

15.        The proper action is to sell very lightly into this strength.  The professional investor will be rewarded for his & her proper actions.  All the other improper investors will have all their gains turned into losses by the banksters.  

16.        Those losses will be very painful.

17.        I bet that perhaps 20{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of the investors dreaming of “huge rallies in gold stocks, for years to come!” actually believe gold stocks are rising because “the Dow is about to blow, and the banksters are finished!”   

18.        After losing 70{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} - 90{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of their investment assets by the Dec2013 lows, a lot of it booked, how can they seriously believe they know where gold stocks are going now?  If I was down 70 -90{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} in Dec 2013, I wouldn’t be making announcements about my new “buy program” “upside targets”.  I’d probably have killed myself.

19.        The fact that a gold bug can’t be killed means they are sort of ordained to financial hades, in a way.  No matter how horrifying the wipeout is, once gold stocks start rallying, they come back to life and start buying.

20.        Having the viewpoint that stocks you bought at your point of maximum pain might rally in a very big way is totally different from buying them as they rally, while predicting higher prices.  The first approaches builds wealth that is retained.  The second approach napalms wealth. 

21.        In Dec 2013, gold bugs were begging to own the Dow, to get a possible 30{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} annual gain.  Now?  Now they think they will make 30{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} a month, and keep all of it.  That’s the last thing on the planet that’s going to be happening for them, regardless of how bullish I feel the charts and fundamentals are.

22.        Don’t be reckless with your liquidity flows.  You may have forgotten about your pain in Dec 2013, but I haven’t.  Greed and fear are the most primal and powerful forces that rule the amateur investor roost.  You may have forgotten about how vehement I am about selling/holding strength, and not buying it.  Maybe you forgot, but I haven’t.  As hard as I pushed you to buy into your personal horror zone, is as hard as I’ll push you not to buy into your personal greedy hog zone.  I have a crystal clear memory of watch high net worth business owners engage in an endless number of minor, intermediate, and major trend investment price chases…gone all wrong.

23.        There are no exceptions.  There are only rules.  Those investors who follow the rules get richer and retain their riches. 

24.        Those investors who break the rules get broken both financially and emotionally, and in many cases the scars are there for a lifetime.  Buys put on when you feel good and are operating alongside investors who are lifetime losers and price chasers… will almost surely be turned into splattered tomatoes by the banksters.  Buys put on alongside the banksters, like those into the recent $1240 area and the June and Dec touchings of $1228, have a vastly greater likelihood of becoming wealth that is retained.

25.        Report Card Day!  Please click here now: http://www.gracelandjuniors.com/images/stories/14july/2014jul12gdxj1.PNG That’s the GDXJ daily chart.  I wouldn’t focus on the bearish non-confirmation in play on the oscillators with price.  I would simply focus on the fact that price is rising, and when price rises it must be held or sold.  Don’t assume you can replicate the wealth built from Dec 2013 to now, by buying now, or you may feel the sting of the bankster scorpion, which has proven itself to be fatal to both gold community and mainstream Dow community price chasers alike.  In the big picture, your June 2013 and Dec 2013 buys have barely moved into the black, and I’ll “dare” to assume you have other positions put on at, shall I say, mildly higher prices?  Let these positions in the black work for you.  You don’t need to own anything that is supposedly about to get away.  Not at all.  There were a few real suicides in the gold community over the past couple of years, directly caused by price chases gone wrong.  Chasing strength here, after buying zero in Dec 2013, is not as funny as the gurus think it is.  When it comes to playing on the pros or the joes team, which team should you choose?….

   Kirk on the gold explorers bridge, out!

Thanks!

           Cheers

           St

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