Wednesday, January 13, 2010

BATTLE PLAN

My purpose is to try and establish choices for your level of investment if you are a reader of this blog. I try to do this frequently but due to time constraints feel that I fail miserably at times.

Tonight I want to regurgitate some recent thoughts that Joe and I have talked about so that you can benefit from these trying to survive the algo slaughter house called a stock market.

The market has always been designed to take the novice traders money. Now the market is designed to take all traders money. Novice traders and professional's money. This is going to be an evil year in the market if you go with the conventional wisdom. T/A must be used to YOUR advantage NOT to theirs. What this means is that if you understand the Fed's behavior then you can use elements of Eliot Wave and T/A. But always be aware that the design is to scrape every last trader's dollar from every corner of this market into the pockets of Goldman Sachs and their tentacle Hedge's.

From now until mid 2011 the Fed will keep the spigot on and the green juice of life will flow into the market. GS will keep the ponzi alive and our miners will be great trades. In fact for the next year if you are not a trader you can buy and hold until then. AGAIN in case you aren't familiar....GG ANV EGO JAG SSRI SLW VGZ AUY should be strong. As a trade the gaps will be phenomenal.

Oil will be kept in a range 70-90. You can make money on DTO but patience is key. There are traders that are killing this trade. And there are traders that are getting killed by this trade. Be carefull.....only for the strong.

Joes recent favorites and mine for at least the next 6 months are SWC and PAL. Palladium just starting its run IMO. We shall see.

For the readers that are sick of the PONZI and want some safety...YOU MUST BE GETTING PHYSICAL GOLD NOW. You will hold until the end of 2014. Thats right till 2014. GL and thank you for all of your kind words for my recent loss.

10 comments:

  1. Don't forget about ANO. Not sure if it'll keep running like it has but I posted it here a few weeks ago in the $.80's. Now it's $1.42. May pull back, may not, but it's a huge winner long term (3-4 Years). GL

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  2. KliWAve...new followers ME:)
    Anyhow Kli so sorry about your loss. Must tell you your general market premise is correct for 2010 however there will be a 10% correction beginning February. It won't happen overnight but over the course of a several month period. It will kill most EW followers because the will jump on the short wagon thinking it is P3 only to find out it's not and it will be choppy but my feeling is if one purchases March or April Spy puts when the S*P hits 1200 you could see a 400-500% return.
    Gold is going to have a major correction Kli much more than most think so be careful with that.

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  3. Yes I agree that gold correction and miners could be rough If you are buy and hold you will recover.....if you are trader remain nimble. And agree with your 2010 trading premise...I am confident on gold long term

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  4. Anon,

    There is a good possibility that you will see market correction of 10% to 25% this yr for S&P, DOW, and NASDAQ. Gold will retrace as well initially when overall market decline starts, how ever 2010 will remain within trading range and therfore an excellent yr for savvy traders. Physical Gold's highs won't be achieved this yr, Gold will have an excellent run when the last part of the super-cycle is in progress which is around 2012 thru 2014 due to safety net value and currency significance of Gold. I already mentioned to kli that if Goldman and the FED bring the S&P up to 1200/1240 this yr then shorting and holding S&P 500 could be very profitable.

    palmer

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  5. Kli your blog provides an excellent service to your readers. The traders you have attacted here are top notch like yourself. Always good intel and plays are found here. Thanks

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  6. By physical Gold's highs won't be achieved this yr, I am refering to how high Gold can go and whether this is the yr or not. I did not mean Gold won't reach recent highs of 1227 this yr.

    palmer

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  7. yes .....joe and I have no idea on golds high this year but it could easily see 1300..golds price is not that critical to us this year....longer term its going higher with a hold until 2015..... the miners will be the trade ...If you hit that one right...then this year will be nice

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  8. Pls look at SDS...there are 2 huge bets, about 300,000 shares this am to: (1) force SDS below 33, and when it recovered to 33.07, to stop any further climb. As ZH pointed out yesterday, seems someone has a lot invested in SPX > 1150 for options expiration.

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  9. Kli,
    I have been reading your blog for aproximately 6 months. My condolences on your recent loss.
    I don't remember if SVM is on the list of miner plays, but I would apreciate yours and Palmers, and analyze, opinion.
    Thanks and God Bless.

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  10. I don't have a major issue with SVM. but It is going to have problems with a flagging economy as some of its "other metals" take some hits.

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