March 8, 2014
JWU WINDSHIELD WIPERS ON UPDATE
1. Chuck Plosser, head of the Philly Fed, said yesterday that he wondered if America would ever get back to high GDP growth rates. He stated his key worries about massive “unintended consequences” from the QE Crackpipe program. The world’s largest wealth transfer program is finally being tapered (hopefully) to zero.
2. Maybe CNBC will call the Plosser statements a Dow buy signal?
3. Question: Did you and your junior gold stock rocket have fun yesterday, in the jobs report asteroid belt? Luckily, Mohit Kamboj, the most powerful gold man in India and Henry Cheng of Chow Tai Fook China got together, and thoughtfully installed windshield wipers on your rocket.
4. My suggestion: Turn those wipers on. Get that the jobs report space rocks off your gold stocks rocket windshield, so you can see out of it properly.
5. Quite a number of my heavyweight fundamentalist econ pals are throwing in the towel now on gold. They have the same view that Dominic “stoneface” Schnider has, which is that US yields are going higher, and that will end the gold market, like it ended it in 1980.
6. I don’t think my econ pals understand the Chindian situation. Not at all. I’m not even sure they understand US T-bond yields very well. They are lost in a time warp, believing that America still rules the gold market roost.
7. Alan Greenspan apparently escaped out of the insane asylum again, and the bad news is that he doesn’t have his meds.
8. Greenie apparently made it to the CNBC studios, where he bragged about his new plan to destroy the Russian economy, and then help all the Russian citizens pay triple the taxes they pay now.
9. Greenie believes his psychotic plan, if it succeeds, is a victory for freedom. As I said: The freak is off his meds. Perhaps Andrew Jackson has the medicine that Greenie really needs?
10. Attention all gold bull era champions, please click here now: HenH http://www.gracelandjuniors.com/images/stories/14mar/2014mar8gold1.png Double-click to enlarge this “Breakfast of gold bull era champions” monthly candlesticks gold bullion chart.
11. Can this potential head and shoulders bull continuation pattern really form? What, fundamentally, would form it, and catapult your junior gold stocks into the Pluto zone?
12. First, from a technical perspective, note the epic buy signals flashing, one after another, on almost all the technical indicators and oscillators on that chart. Don’t worry, it’s really possible for this H&S pattern to happen.
13. Second, think in terms of ultra-tonnage demanded from your mines, not jobs report stories. To do so, please click here now:
14. http://www.gracelandjuniors.com/images/stories/14mar/2014mar8jobs1.PNG The US dollar is on the ropes against the rupee. It looks a bit like gold did as it came down for the fourth touching of the $1577 HSR zone. If the dollar tanks against the rupee while the Indian current account deficit keeps declining, and Modi gets elected:
15. Then you have the fundamental tonnage demand in play that can carve that H&S bull continuation pattern onto the chart, and blow gold into the $2700 technical target zone.
16. Real world tonnage demand that swamps the supply of gold that your stocks explore for and produce is what blows your stocks into the Pluto zone and keeps them there!
17. Gold to the Chinese jewellery buyer is like alcohol to the alcoholic. No jobs report or Chinese exports number pumped on CNBC is going to stop the alcoholic from demanding his alcohol. What about India? Gold to the Indian jewellery buyer is like heroin to the heroin addict. He’ll do anything to get his heroin, and I mean anything.
18. The very last thing on this planet that a heroin addict with no heroin cares about, is how many Americans got a job or lost a job. If the heroin addict doesn’t get his heroin, he’ll go into shock and die. The addict needs the heroin your mines produce, and he’s coming for it. He’s coming for all of it, and your mines are going to totally fail to get him all that he needs. That failure is going create an almost psychotic institutional surge into gold stocks, dwarfing anything you ever envisioned in the super-crisis, in terms of upside price points.
19. If Narendra Modi legalizes heroin buying, and I think he will…. are your mines really prepared to handle what is coming from a billion gold heroin addicts? The US Ambassador to India visited Modi at his home recently, and apparently assured him that America would welcome him with open arms if he wins the election. England has already ended the travel ban they had imposed on him. India’s growth rates are poised to begin a surge, whether Modi wins the election or not. If he wins, it’s just a giant pot of icing on the gold demand cake.
20. When the dollar tanks against the rupee, that increases Indian gold tonnage purchasing power. What do you think that does to Indian demand? Understand the mind of a heroin addict, and you understand what is coming for your gold stocks.
21. Please click here now: http://www.gracelandjuniors.com/images/stories/14mar/2014mar8gdxj1.png Double-click to enlarge. This daily GDXJ chart shows junior stocks in a rough range between $40 -$44. I call the range $35 - $45, because real buy-side HSR starts at $38.22, and extends down to $34.28.
22. I’ve noted that many of your junior gold stocks have already blasted far above the mid-February highs. Will GDXJ follow? For the possible answer, please click here now: http://www.gracelandjuniors.com/images/stories/14mar/2014mar8gldx1.png Double-click to enlarge.
23. Unlike GDXJ, the GLDX explorers fund did successfully break out of the symmetrical triangle to the upside. While Rick Rule tells you that stocks like Barrick, Kinross and Newmont are the leaders of the pack, I have to wonder if maybe he had an accident, and hit his head when he fell down. I’ve told you that the juniors, and particularly the highest risk explorers, would lead the show, partly because institutional money managers understand that Chindian demand means new gold must be found.
24. Gridtime! Are your gold stocks on the team? Mohit Kamboj is head of IBJA (Indian Bullion and Jewellery Association), and I’ll be covering the light speed at which the world’s ultimate titan of ton is transforming that organization into what I believe will become the most powerful financial entity on the planet, an entity that wants the gold from your mines like a vampire wants blood. Another watershed moment was achieved this week at IBJA, but Mohit has already had key meetings with Narendra Modi’s policy makers, and is putting massive pressure on the Indian central bank. He’s also had key meetings with the Indian police. As this supreme titan of ton works himself to the bone, to take demand for the gold from your mines into the galactic zone, please click here now: http://www.gracelandjuniors.com/images/stories/14mar/2014mar8mk1.PNG We. The Team. The team leader gave you a pair of windshield wipers to clear the jobs report crap off your gold stocks rocket windshield. He expects you to get that job done.
Kirk on the gold stocks era bridge, with the windows clean. Out.