Wednesday, June 17, 2009


Its a scam........remember....ok it goes.......another stop shop day ...kick um out take the suckers money. There is only one trader in this market ...and its if you want to know the number know the game.......flat close......


  1. Well, call me nuts, but I'm still holding my FAZ.

    I think the banks are very worried about Obama's oversight program. It threatens their Ponzi scheme. We'll see though. Obama did vote for and fully supports Tarp, printing cash and killing the dollar. I have very little trust or faith in him.

    One other thing I should mention.... A LOT of fortune 500 companies have huge investments in Iran. A lot of people think Iran is off limits for American co's.... not true. I think this is a factor too.

  2. sheeple have no clue about is a 800lb gorilla according to palmer and i agree....this country is an economic force......

  3. Should have sold FAZ near the peak at $5.37...

    I went against my system today. When the VIX falls this much, I almost always sell FAZ on a spike.

    Got greedy. Now things are flattening out just like you predicted. This game stresses me out.

  4. Well KLI, now FAZ is shooting back up fast.

    I give up. I'm just going to close my eyes. Wake me up when the game is over.

  5. Kli, Red---UNG

    UNG seems holding well above 15.50 (one of the four entry points that Red pointed out a few days ago: 9.25, 11,13.25 and 15.50. Has the hourly stochs started to bottom out?

    Thanks and best,

  6. only comments i have is we stayed above joes 13.25...thru rollover......

  7. Kli,

    Have you sold all your SRS and FAZ? I still have a tiny position that bought at 40ish (Damn), wondering if I should sell them all.

  8. Kli you were right on today :)

  9. tom the cabal is zeroing in on careful I dont know their next move but their game is to get some more shorts in to the slaughter

  10. Tough call between the equity, bond and currency market which is more important for the moment. My guess in the 10 year is the main focus since banks had a 3 month window to print shares like mad; needs to get to st least 3.50 from 4.0 last week.

    UNG hourly bottomed yesterday, and topping out in today's trade, daily double topping pattern. But commodities are weird. The 15.50 entry's exit point may have already passed in the 16+ spike. I would not personally enter new longs for UNG right now, profit taking from the low 14s or under would be an option to consider.

    Gold is overbought in short term trading and may start heading for 200 dma, limited though by weakness in the US dollar.

    Both should have at least one more corrective leg down to finish the cycle before heading higher. Hard to guess, if you feel uneasy about your position cash out and stand on the sidelines for better risk/return entry opportunities.

    For lower risks trades look at entries/exits on 7 and 15 day cycles.

    Shorts will be slammed hard just a matter of when the critical mass is reached either it was today or somewhere lower near either the 200 dma (905) or lower daily bollinger band (885).

  11. Kli, sure do enjoy your blog here and also the it every day. Thanks...

  12. KLI's stunning accuracy:

    Monday prediction: 922 S&P 500 Close: 923.72
    Tuesday prediction: 910 S&P 500 Close: 911.97
    Wednes prediction: FLAT S&P 500 Close: 910.71

  13. Kli - You are getting a little scary with your calls...

    Red (or anyone else) - you definitely think we will see UNG and GLD see some weakness? I wanted to start bleeding some of my wife's 401K cash into something and equities ain't where I want her to be.

    Also looking at UDN. Derivative risks aside thought it might be a nice play. Looking for something for intermediate to long range time frames.

  14. palmer has beat me over the head until it finally sunk in homer.....the safest and of course nothin is probably a basket of gold or silver miners....auy gg slv ssri...put um um but only trade um at their top dont trade um at all

  15. Time Horizon. If it is 6 months to 2 years, then you just accumulate gold miners at these prices and lower incrementally. Then only sell on a major 1 day commodity spike after large move like $50-$100+ depending on your time horizon and price target. I am not too keen on holding any paper assets indefinitely including the miners going in to the next 5 years. You will eventually want to cash out and convert to useful hard assets to survive.

    I am not too knowledgable on silver miners due to the economics of exploiting their reserves and their volatility, moves track gold in general but magnitude hard to predict. UNG is a trade up to 6 months or a year, definitely don't hold any ETFs for the long term 1+ years due to possible defaulting of contracts or derivatives.

    Use portfolio approach for basket of miners.

    The expectation in the inter/long term from investors in stagflation and an explosion up in the price of gold, oil, natural gas and the collapse of the US dollar.

    Short term it looks like policy makers are keeping tight control on the equity, bond, and currency markets in a range bound area in order to maintain stability in the overall system. Basically regardless of where you park your money in the short term it will be flat with fluctuations back and forth of 15% until the big events happen then the deflation/stagflation tug of war begins.

  16. Thanx guys, excellent arguments. No interest in UDN at all? I know the rap against deivatives, but really thought the ETF that's bearish on the dollar would be good. I guess you still need relative strength in the other currencies and I've heard good arguments why exporting countries will fight that. And if the dollar cracks, the commodities should do well.