Tuesday, March 23, 2010

FLAT DAY FOR PRECIOUS METALS update I

PM miner stocks remain in their tight chanel with continued pressure to prevent them from breaking out. This is a consolidation move that I think falls within a much larger consolidation phase. We may very likely see lower lows than Feb. but this will not change my longer term outlook and that this is where you want to be not only as a trader but an investor.

Play the gaps if you have the time during the day otherwise hold your core on AUY EGO ANV JAG GFI GG VGZ SLW SSRI...

As Joe has emphasized this year will be the year for palladium and SWC...GL

Here is REUTERS for today...


NEW YORK, March 23 (Reuters) - New York gold futures ended
higher on Tuesday, erasing losses earlier in the session, as
economic optimism driven by a U.S. housing report boosted risk
appetite across the board. * For the latest detailed report, click on [GOL/]. GOLD * COMEX April GCJ0 settles up $4.20 at $1,103.70 an
ounce. * Ranged $1,108 to $1,094. * Gold investors take heart as equities market rose after
U.S. existing home sales data fell less than expected in
February. * Gold initially weighed down by a weak euro on concerns
that a rescue package for debt-laden Greece is unlikely.
[USD/] * Gold in non-dollar terms continues to look attractive -
Dennis Gartman, investor and publisher. * Sentiment cautious as investors look forward to CFTC
public hearing on metals futures on Thursday. * For a list of speakers at CFTC hearing, click
[ID:nN22165847] * COMEX final volume 154,405 lots. * Spot gold XAU= at $1,105.05 an ounce at 3:27 p.m. EDT
(2027 GMT), versus $1,101.60 late in New York in the previous
session. * London gold afternoon fix XAUFIX= at $1,101.50. SILVER * May SIK0 ends up 9.2 cents at $17.027 an ounce on
metals' positive turnaround. * Range from $17.150 to $16.735. * COMEX final volume 30,300 lots

update I My mantra for the past 10 years is to get the leverage with the precious metals juniors and take profits when they are running hot to build a significant position in the precious metals. I recommend buying gold, silver, platinum, and palladium and taking delivery of those metals. Don't rely on ETFs, pooled accounts, or certificate programs to do this for you. In the end, I believe all of these products will be proven to be fraudulent. In other words, you won't be seeing the benefit in those investments as the gold prices rise because the gold doesn't exist the way they say it does. Those who want to protect themselves need to own the physical precious metals themselves and take delivery.

You want own the juniors and you also want to own the physical precious metals. I look at my holdings of physical metals as the ultimate bank account that cannot frittered away by corrupt, power-seeking politicians who seek our destruction. I use the juniors as my way to get big leverage in my investments. The combination of owning both the mining stocks and the physical precious metals is the best way for investors to protect themselves from the debacle of fiat currencies and utterly corrupt politicians and financial corporations.


http://news.goldseek.com/GoldSeek/1269460713.php

33 comments:

  1. Well we broke the 1173 that Analyze pointed out. As I expected there will probably be a big move while I am at 38k feet over the Pacific.

    Joe save some of the carcass for the hyena cubs. I will be pretty hungry when I hit the ground Thursday afternoon. hehehe

    GL

    ReplyDelete
  2. WOW the states got those lawsuits going quickly! I knew the individual mandate would be instant constitutional controversy but it took them mere minutes!

    What I wanna know is with 2 corporatist parties, why did the red corporatists stack the supreme court with conservatives right before the blue corporatists wanted to tear up the constitution?

    Of course maybe said judges will just mumble something inaccurate about the supremacy clause and refuse to hear the case.. In that case then this all checks out.

    ReplyDelete
  3. Temo, LOL, you have the same thing happen to you. We need to keep track of this. You can go short whenever I travel, works every time for huge downside. I'll let you know the next time so you can load up. - Analyze.

    ReplyDelete
  4. OK, I think I'm now going to hold my nose and start thinking about going long. With window dressing and earnings coming up, looks like this thing is almost surely headed past 1200 in the next 4 weeks.

    -Mike

    ReplyDelete
  5. The CFTC is clearly smoking some good stuff:

    http://www.kitco.com/reports/KitcoNews20100324B123A.html

    ReplyDelete
  6. Yikes, what's up with jag? Should we be holding this? It's fallen 10% in the last two days.

    ReplyDelete
  7. Driving it to its previous low IMO...

    ReplyDelete
  8. previous low? ... low 9s, low 8s, low mid-7s or <4.86 ... wolf

    ReplyDelete
  9. Hi Joe - you still a fan of ALU? It's taken a little bit of a beating over the last few weeks...but I noticed you said double if it gets to 2...

    ReplyDelete
  10. Joe thinks ALU is a longer term hold....downside in Market dump is probably 1.50.......if you believe we are going to get an SnP dump to 600 in the next year......and he and I don't see that.....with the Fed's spiggot wide open... plus this is a French company and vital to their interests and it is an employment manchine in a vital industry......

    ReplyDelete
  11. homer,

    ALU is a good buy any where around 2s, if you read my posts I mentioned to kli to buy it at 2.70 which he did and I told nancy 3.50 was the sell target and it got there and now it's retracing. Among telecoms the past couple of weeks I have been trading Sprint which has done well lately. Are you in ALU? and if yes at what price?

    Joe

    ReplyDelete
  12. JAG could hit 9s (lower daily bollinger band) fast as dollar strengthens conveniently to help YouAreAPeon exports. Physical gold will continue to get a strong bid even as miner's get slammed according to the charts.

    http://finance.yahoo.com/q/ta?s=jag&t=6m&l=off&z=l&q=l&p=m50,b&a=r14,ss,m26-12-9&c=

    ReplyDelete
  13. Red,

    Also do not forget JAG is a junior minier, during retracements juniors can even take heavier hits than major miners.

    Joe

    ReplyDelete
  14. Not a flat day for my ZSL holding...went heavy long Monday...:) TXB

    ReplyDelete
  15. TXB,

    If you are shorting silver then going long ZSL has lot of decay, short SLV or SIVR if you feel like shorting silver.

    Joe

    ReplyDelete
  16. That's the funny thing, thought we picked up both ALU and S in mid threes. I checked the account a few days ago and someone dropped the ball. Good miss for ALU, ouch for S. ;-)

    Was only looking for a little anyway.

    I finally signed up, lets see how this posts...

    ReplyDelete
  17. I need help....WHY the high volume selloff in miners.........WHY today....hmmmmmmmmmmmm

    ReplyDelete
  18. Good question! Could it be time to pick up some more?

    ReplyDelete
  19. Kli,
    Forgive me, but I am not exactly captain obvious.
    What is the answer to your question?

    ReplyDelete
  20. BTW, I'm still stuck in EGO. I thought I was looking at a gap, but I was looking at the beginning of a correction..:(

    ReplyDelete
  21. I'd be careful with the miners right now. If the overall market drops, which is looooooong overdue, everything will go with it. PMs haven't participated in the recent rally as I would have hoped so I'd be quite cautious.

    -C

    ReplyDelete
  22. CBS I was not being obtuse........I DONT KNOW...except to say the obvious which is large sellers indicating further smackdown to come .....but open to all opinions.

    ReplyDelete
  23. FWIW, I'm holding S and will buy back alu if it reaches gap at 2.83 or less. Noticing s&p has 3/4 gap @1126.4 (or that's what it looks like on the chart I checked). got creamed on jag the last 2 days, but now I understand. Surprised with Greece/Spain that gold/silver are taking such hard hits. Thanks to all as always. - Sis

    ReplyDelete
  24. kli,

    You know very well why miners got hammered, combo of Gold dropping, dollar rising and overall market going down today,heheeeee!

    Joe

    ReplyDelete
  25. CBS,

    kli is playing the role of DO NOT KNOW today, that vulture knows very well why miners dropped.

    Joe

    ReplyDelete
  26. By the way kli is very happy now since his wishes of miners getting hammered is coming TRUE. He is very cheap and believes in the concept of buy for pennys and sell for dollars. His plan was to get drunk and celebrate if miners start real drop and he likes what's happening so far.

    Joe

    ReplyDelete
  27. Joe - You can't short from a cash account such as an IRA. Long ZSL or SLV Puts are the only choice.

    ReplyDelete
  28. Anon,

    I know you can not short from cash accounts such as an IRA. TXB did not mention whether she was trading from marginable account or IRA.

    Joe

    ReplyDelete
  29. I have no doubt kli is happy! I'd be happier if I had some more ammo, but as long as this metals move is merely leading the market down I should end up moderately happy at some point..

    ReplyDelete
  30. Geez BofA forgiving up to 3bil in debt, the health bill has passed, bond yields flirting negative.. Time for a slope of hope mayhaps?

    Don't worry that 3 billion is supposed to fix what it took a trillion or more just to hide this long. Gotta have hope!

    ReplyDelete
  31. Joe, I'm trading from a marginal account...TXB...I also have an IRA acct...I trade puts/calls as well. I swing trade shares in the IRA and marginal acct...

    ReplyDelete