Tuesday, June 21, 2011

MAD MAX TIME?


Not quite. I say Ben has more rabbits. Greece and the debt "restructuring" will present only a temporary speed bump for the "Great Maestro". He can juggle this problem with his eyes closed and his hand on the Magic Fiat Machine. So don't worry gloomers. Its all under control. You can rest tonight with your stacks of foil wrapped greenbacks safely stored under your mattress a little longer. Just make sure your neighbors don't know you have that fiat and those gold bullion coins in your house or you may find Mad Max is closer than you think. For now you just need to pay attention to accumulating food stores and more gold and silver.

The Kondratiev winter is getting closer but there are still some loose ends that need to be tied up before the true power flush all of your excesses down the toilet and buy your precious assets for pennies on the dollar. This kind of Supercycle does not end so easily as a little Greek debt unwind......no....I think they can prolong this game a little longer.

Of course I could be wrong, but if I am, then its curtains for your trading accounts anyway and Mel Gibson time begins. So let's try and focus on where we are. The miners look terrible, but then that is how bottoms are formed. They are being manipulated down for a reason. To shake you out and make it possible for the big boyz to buy (accumulate) on the cheap. They may get cheaper but if you don't have a position then you should be buying a position now. GFI ANV SSRI SLW may get cheaper but we are at a place that seems reasonable to own them. Keep a large cash position in case they take a real beat down but this is getting into a buy range. Remember this is paper and like all paper trades you have NO control over the ability of the big boyz to bust the PM miners much lower. If you don't have the stomach for it just use your fiat to buy bullion here.

This Greek mess is a true disaster but "they" have known this for a long time and there is a game of high stakes "chicken" going on. In the end the "true power" will win this round. Sure, its only stalling the inevitable but there are reasons they are wanting this to get kicked further down the road.

Don't forget EUO if they do stumble here it could explode. Even with some time of patch on this leaking tire, EUO should start moving up sincel everyone will know its only a patch. gl all

42 comments:

  1. From Phil's Stock World

    He suggests increasing cash positions since Greece is not really fixed.

    He believes a crash is coming. He gives no timeline.

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  2. SVM is having another good day after CEO announced buy back shares yesterday, shorts brought this puppy down in a short time from 16 to 8 and now since yesterday short covering. Bill, NO TIMELINE given to real pros means market got the average retail traders by taking them out of trades using FEAR. When news like that are available to the public is announced means certain stocks and sectors already have taken a beating and pros want average traders/investors out so they can take it up. There is a good reason most retail traders do not make money from the market. Psych ops of FEAR or Greed always works with public. The best traders/investors are those who do not pay attention to most of what so-called analysts say and focus on what sectors and stocks react rather than allowing what they read on articles to determine their decision, I really can not teach you guys how to think like big boyz, individuals either can think outside of the box or can not, public is always the last to know. heheeeeeeeeee!

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  3. Huge difference between being a BEAR as far as macro-economics is concerned and translate it into making money in the market and figuring out what market does. Stock market is a different animal than real street economy, it does not behave real time with macro which is why those who trade soley based on macro-economic news can lose their shirt in the market. Big BOYZ know well ahead of time the macro situation and by the time they announce it to the public they have got the market where they want it.

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  4. Gold itself has not retraced at all, but you look at some Gold/silver stocks and they are already 40% cheaper than couple of months ago which means market works way ahead of actual events thru hedge funds, MMs,,etc. The best traders use reverse psychology to make a killing in the market. Stock market and actual economy's time frame NOT THE SAME, heheeeeeeeee!

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  5. I repeat again, if you want to make money from market, you need to think like the ones who run it, not many can think like OTHERS without being them, that's the key. It's like a person who is not vietnamese, Japenese, Russian,,etc but can think, behave and act like them without being them, that experience starts from early age thru rigourous desire and training but it's the key to be able to see outside of the box.

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  6. kli,

    Can you think and behave like your readers without being them, start with that, not each one comes from the same background, culture or way of thinking, accomplish that first and then you can start thinking about higher ups, at your age it probably too late, heheeeeeeee!

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  7. LLEN yesterday touched exactly the 52 week low of 4.29 and held which meant good trade yesterday and today regardless of macro-economics, mad max, Greece or any other issue going on, SLW held 30 yesterday which meant the same thing, heheeeeeee!

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  8. Sorry all......long nite...my my what a "surprise" this morning.....miners exploding....is it a "bounce" or something a lil more?? One thing is certain....you could have made a trade with this bounce if you had bought when you saw that ANV volume spike at the bottom of the MACDs and STOCHS and 200ma

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  9. Most retail are destroyed in the miner trade so on the first hint of a bounce the ones that held their shares through the slaughter will dump into the bounce.....since they held through the other bounces that didn't pan out and were slaughtered.

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  10. Lets see what they do now. There is an awful lot of blood in the streets and the much needed correction in the silver and PM miners was brutal.........and prolonged.........the boyz accumulated and the sheep sold

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  11. Joe,

    When I post something about Phil, I am doing so for the general interest of the group. I have been a long time reader of his since his early days on Seekingalpha. He has opened my eyes to the market, much like you and Kliguy's blog has.

    Now, is he ever wrong? Of course
    Does he write to manipulate retail for the benefit of his highest paying members? Sure
    Still, I feel he does post information that can help the average retail investor. Individuals need to read what he offers, and then THINK just how best that may apply.

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  12. Go SVM and RIC, go baby go, heheeeee!

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  13. ORS trading action is simply awesome on both side of the coin!

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  14. Bill,

    What I mentioned is not about you, it's exactly about what I intended it to be which is using what you mentioned about phil as an example of one of the ways big boyz manipulate the general market and retail traders, it's meant to be constructive and educational to kli's viewers and it's not personal. If you feel what he says is beneficial to retail traders and in ACTION is creating profit for traders then so be it, but you already agreed by mentioning that he writes to manipulate retail for benefit of his highest paying members which means the antenna of average trader should be up because of that statement which you agreed to. 2+2 should come out 4, not any other number. Personal feelings, ego, like and dislike does not belong to stock market when it comes to making money. No emotion!

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  15. Joe,

    what are your thoughts on FCEL at the moment. it has been stuck in a small range for a few weeks, consolidation before the next big move up? and do you think it needs to retest $1.35 first before it can get the all go signal? the charts seem mixed in the short term. the MACD is close to crossing, but FCEL still seems stuck in a long downtrend,i could see it getting to $1.60 and then being rejected and reverse back down from there. any thoughts?

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  16. Rudemood,

    FCEL is going thru consolidation period now, as long as 1.35 holds then it's all good at current range and will try to test 1.60, if 1.35 breaks down then the next support would be 1.10.

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  17. Joe,

    I didn't take your comments personally. I have found Phil insightful and helpful, but, perhaps I have learned to read between the lines, and I do read other sources.

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  18. Joe's point is that human weakness is used to control the market. Predictability is calculated by algorithms that are used to their maximum success. We cannot use these same algos or the HFT trading platforms but we can recognize the larger picture and use it for our benefit. This requires knowing your own emotional weaknesses and overcoming the accompanying behavior/response. In principle this seems relatively simple, but in practice it is never easy....NEVER. For instance when I posted two months ago when silver was 49 that the miners and silver were in desperate need of correction and as they pulled back initially did you exercise PATIENCE or did you buy on the first pullback. Your emotional responses are all predictable by the market masters.....I certainly am proof. Joe is wanting you to recognize these elements that exist within you and perhaps you can master them......some will......MOST will not

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  19. Bill,

    My hope for you and others is that at some point you understand the game well enough that you read other sources NOT to be influenced by them but use them to check the validity of the info they are trying to sell you against what you on your own have figured out. That process is a challenging but rewarding process, it requires openness and mastery of your own biases, likes and dislikes.

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  20. In EXK @ 8.08. Nice to see some green.
    It's approaching resistance now at the 20 day. Maybe break thru??

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  21. When it comes to stock market, there is only one PROOF to yourselves that counts on whether you understood the game or not and that's if you can make money from it in consistant basis and your gains are higher than your losses.

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  22. Joe,

    thank you, i bought into FCEL at the current level, and am just waiting it out. i will pay attention to $1.35 price point.

    Kli,

    i am holding my core (what's left of it, haha) for the long term. didnt take your advice yesterday, wish i would of scalped some yesterday. just a wee bit gunshy at this point on the miners.

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  23. Kli,

    i was talking about EGO in the post above.

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  24. perfectly controlled market move....market up strongly......money flow into the bluechip miners.....gold and silver move very subdued.......oil actually red now....perfect.

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  25. I'm a perfect example of what Joe is referring to, sold my small position of GORO yesterday, to test waters. But held all others...no panic, just a BUSINESS decision, right Joe?

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  26. EXK a monster today, too. GPL and PZG lagging.

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  27. Oh, anybody in the Chinese--Yoku, mobi, dang, etc.?

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  28. Nancy,

    I do not worry about you and I explained why, you are fine whether you held on to your miners or not. When are you going to visit Europe again? If you have not gone to Brazil, go for a nice visit and enjoy yourself. What you have already received in the way of pension and social security + your stocks earnings and savings is something that newer generation will only dream about.

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  29. Perfect market move for what? I should have gone in like Joe did at SLW 30 level. I was to burned to do it. I went in heavy today on a few, but sold enough to "reduce my price" significantly. 2/3rds cash now. I like RIC. looks like they have some new stuff coming on line this year.

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  30. Nancy,

    Your situation is perfect in compare to most people but for whatever reason you do not want to take advantage of little time you got left on this earth. If I did not have serious business responsibilities which has nothing to do with me and everything to do with those who work for me, I would not even be in the market regardless of how much profit market generates.

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  31. Joe, plenty of enjoyment here...but thanks for the advice as always. You are right, am very thankful for my situation. Not sure I am home free at all...guess I just worry, remember all the talk of the '30s depression from my parents. Plus,obviously like the casino or wouldn't participate, lol. Also would love to go to Brazil. Maybe for my next birthday. AND enjoy all the brilliant people I have "met".

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  32. Nancy,

    Ok, so be it, at least you are honest with yourself about liking the casino which means you enjoy gambling, fine. 30s depression won't apply to you since financially you have taken care of that scenario and your financial needs would be satisfied plenty by what you already have. Your son is grown up and it's only you and also you do not have to worry about feeding or relying on any man or husband, from pure financial point of view your situation is perfect.

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  33. Well, that's encouraging! I had no idea you owned/ran a business...it's a huge responsibility, lucky you don't need sleep. Incidentally, don't have a pension, took it in cash.

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  34. Nice little pop on the Indexes as expected. Good for some scalps (my Cherokee blood wants scalps - hehehe). But don't get comfortable, looks like tomorrow could reverse most or all of the gains today.

    Sold the half of HL that I was holding for trading.

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  35. Inlet,

    That would be very nice, the only constant thing in life is change!

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  36. Nancy,

    Even better that you took it in cash!

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  37. Only looking at today's close on several stocks (near high of day with end of day buying) you would think that the stocks would pop. The problem I see is that there is not much above them right now to aim for except "air". On to many, the next level of support is a big jump higher. I can't see them going that high, that fast, thus they will want to come back down, and today's close won't hold them. Selling will then commence, like Inlet suggests.
    we shall see.

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  38. and SPY has big resistance in the 127.60-130.13 area with the weekly 5period and daily 20period ma's

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  39. a big reversal tomorrow would drag the bears right back in....it would be confound dip buyers and allow more bears to get reloaded......

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  40. Hi fellow traders ... Thought I would check in late just to announce that I'm heedinh the call to seize the day by having great steak and wine (maybe too much) on a tip to Tampa ... Checked my trading account at EOD and was down $24 ... One of those days where I realize that my PM miner hedge was maybe a bit too heavy ...:)

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  41. Well if I were a real trader I'd gloat over GORO but I held the same shares 2 weeks ago too so it's all just good fun for me.

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