JWU MAY 5

 

 

 

      May 5, 2014

 

     JWU DUBAI AND YOUR JUNIORS UPDATE

 

1.   One of you asked me about New Gold stock.  Apparently, several newsletters like the stock, as a junior-intermediate play.

 

2.   They do have a decent cost structure and potentially massive reserves.  The technicals are quite interesting.  Please click here now: http://www.gracelandjuniors.com/images/stories/14may/2014may3ngd1.PNG

 

3.   That’s the daily chart. While the 15,9 TRIX series does smooth out a lot of the false signals associated with most other oscillators on individual junior/intermediate stocks that have a lot of volatility, and it’s flashing a buy signal now.

 

4.   I wouldn’t recommend buying stock based on indicators like the daily chart TRIX.

 

5.   Having said that please click here now: http://www.gracelandjuniors.com/images/stories/14may/2014may3ngd2.PNG  That’s the monthly chart of New Gold.  Note that the price hit the $14 highs area way back in the year 2000, again in 2006, and again in 2011.

 

6.   It’s almost surreal that any gold stock other than an outright scam could be trading near $14 with gold at $250, and at $14 with gold at $1923. 

 

7.   Then again, this is gold, the land where the bizarre and surreal is….100{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} real.

 

8.   The monthly chart TRIX is not flashing a buy signal yet, but it’s close, and significant moves higher do tend to follow these signals.

 

9.   A couple of you asked about the Jaguar reverse split.  I’m not a big fan of reverse splits, except when they are used to create a new entity that adds value for shareholders.

 

10.                For example, when I was asked to help promote Ontzinc as it was set to reverse split, I enthusiastically agreed because the reverse split involved mobilizing the Balmat zinc mine and turning Ontzinc into Hudbay. 

 

11.                Shareholders who bought before the reverse split did very well.

 

12.                In the case of Jaguar, I’m a bit less enthusiastic.  The company could have been sold for $14 a share, but mgt and shareholders alike went for the bird in the bush rather than the one in the hand. 

 

13.                Jaguar does have some decent assets, but the key to the success of the reverse split, in all likelihood, is whether gold stocks are bottoming here or not.

 

14.                They definitely appear to be bottoming, but if they are not, Jaguar could end up at the same lower price it was at (5 cents) before the reverse split.

 

15.                Thanks to one of you for sending me some info on Nuclear fusion progress.  Fusion is safer than fission, and I would expect it to become a reality within 10 years. 

 

16.                While the West may want the first real starships to be powered by gasoline, while the citizens of Shanghai walk around in space suits because the air is completely poisoned, the reality is that Chindia will embrace fusion, and that could create an exponential change in the rate of industrialization.

 

17.                Please click here now: http://www.gracelandjuniors.com/images/stories/14may/2014may5goldj.png That’s the daily gold chart, not including this morning’s blast off action.

 

18.                Junior stocks can rise while gold moves listlessly, or even while gold tanks, due to anticipation over cost of production issues, but they almost always rise when gold itself rises.

 

19.                Note the action of the stokeillator (14,7,7 Stochastics), TRIX, and ROC indicators at the bottom of the chart. 

 

20.                Gold is solid here, and the econ bears at Goldman and other bank firms are getting the market all wrong, because they don’t understand the inflationary nature of the taper, and because they refuse to acknowledge the immense tonnage the Indian mafia has begun to import.

 

21.                The economists at the bank firms are not conspirators.  They are not algo traders or bank owner families.  When gold rose to $1800, they thought Western QE-focused money managers would bid gold to $2200. 

 

22.                They are very good at predicting the trend in play, once they understand what that trend is.  When they don’t understand the price drivers, their calls are horrific.

 

23.                Gridtime!  Gold is pulling back exactly as I suggested it would in today’s GU letter, and “Dubai will aim for delivery of physical gold within two days after a trade, significantly faster than delivery times seen in New York” -  Rags to riches refining superstar Munir Kaloti, May 5, 2014.  Kaloti’s new Dubai 1400 ton refinery, under construction now, is a key tool that will stop the banksters from starving Indians of gold they demand, when they demand it.  I wonder how many in the gold community really understand the epic implications, for the price of junior gold stocks, of what Kaloti is doing?

 

Kirk, surveying the refining party time landscape, out!

 

 

Thanks!

 

           Cheers

 

           St

 

 

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