JWU OCT 25

 

Oct 25, 2013

  1. Hi ho, hi ho, it's off to buy, at key sell-side HSR, all the lobotomized weeble-wobbles, now do go?

  2. As your gold space shuttle arrived at the banksters' $1350 refuelling station yesterday, huge crews of price chasers charged forwards, shouting, “it can fly without fuel, let me pilot the spaceship. I just took some drugs, and I can fly!”.

  3. Targets from $3000 to $10,000 were waved in the air by the drug addicts.

  4. Fundamentalists and technicians jockeyed for the position of lead price chaser, while YOU lightly pressed the kachingo button, across the junior gold stocks board.

  5. Professional profit booking has nothing to do with top calling.

  6. Price has not advanced very much; this is a $100 gold price rally, not a $250 rally like that which occurred from $1180 to $1432, but it's still a rally that has got the price chasing juices flowing, so a bit of profit needs to be professionally booked.

  7. Fundamentally, why should YOU own any junior gold stocks? If you go to the gym, and eat and sleep well, you probably gain some muscle. If you go to the gym, eat and sleep well, and take a mountain of steroids, you probably look like a gorilla that competes in professional bodybuilding shows.

  8. Fundamentally, if you own junior gold stocks, you should own them because industrialization in India & China mean that long term demand for gold jewellery, gold coins, and gold bars is essentially inelastic and growing.

  9. The demand-side risk of owning gold stocks, fundamentally, is not whether that demand is there, but whether mobsters in the Chinese and Indian government collude with central and commerical banksters to prevent that demand from turning into actual purchases.

  10. That happened in India. Can it happen in China? It already did, but to only a small degree of what happened in India.

  11. All markets have risk, and mobster attacks on Chindian citizens are the main fundamental demand-side risk in the gold market. The main fundamental demand-side risk is not that QE is tapered or ended.

  12. When you buy stocks based on inelastic and growing Chindian citizen demand for gold, that's like going to the gym daily, eating well, and sleeping well.

  13. Buying gold based on the implosion of the West is like taking steroids. You might look like a competitive bodybuilder (build huge wealth). Or, you might overdose and die, as the banksters move price, and move your fundamental QE scenario, into the market timing garbage can.

  14. View QE and the implosion of the West, as a massive bonus, not as a fundamental main act, for your gold stocks, and you'll be very happy.

  15. To get happier, please click here now. That's my GDXJ “trend lines” daily chart.

  16. The focus here is the sloping trend lines, and all trend line roads seem to be pointing at $47.50.

  17. The stokeillator sits at 62, which is a much better position that that of gold itself, which is at almost 90.

  18. My suggestion is that you cheer for gold stocks to march higher, and that drags gold over $1350 while the gold bullion stokeillator flat-lines in the overbought position.

  19. Please click here now. That's another look at the GDXJ daily chart. The focus here is on HSR (horizontal support & resistance) lines.

  20. You can see that junior gold stocks are “working” the $41 sell-side HSR area. The next sell-side zone sits at $45, and then there is the $47.50 area that is common to both trend line and HSR enthusiasts.

  21. Is Sangold finished? Are the price chasers who bought at $5 while telling parabola-now stories doomed to watch it go off the board? Perhaps, but please click here now.

  22. There's a very loose head and shoulders bottom in play for Sangold. It's loose, but it's there.

  23. 30 cents is the neckline trigger number, but a move just to 18 cents could get things moving.

  24. Sangold looks dead in the water, and cooked investors in stocks like this will always look for greener pastures (higher priced items to price-chase and get burnt again).

  25. Gridtime! Please click here now. That's the 15,9 TRIX series for MUX (McEwan Mining), on the daily chart. I'm suggesting that while the stokeillator is getting “up there”, this TRIX indicator suggests that any kind of sell-off from the $1350 area in gold is likely to be followed by a bigger upside move. I'm in sell mode here, across the gold item board, but it's very very light sell mode, because there's been minimal strength following very big weakness. Just the sell-off from $1432 to $1251 was a $180 hit, while the current rally is only $100. I'll go into more detail about why the rally can continue, in today's video updates. Thanks!

 

Thanks!

 

Cheers

 

St

 

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