Tuesday, June 28, 2011

ULTIMATE GREECE SOLUTION


As mentioned before a rock and a hard place for a population that has lived beyond its means for decades is never one that is palatable to the population. Particularly the population that must bear the brunt of the "austerity". If you think the populace that has enjoyed retirement at 55 and yearly 6 week vacations is going to go happily through the gates of auterity singing kumbaya and dringking ouzo, think again. Eventually the weak kneed politicians will be supplanted by the generals to control the population. Their heavily socialized economy was ushered into the Eurozone fraudulently by the GS derivative sham that was sold to them so they could "qualify" to meet the "numbers". They may cry now but they took it. Now they have to pay the "devil" and they don't like the "devil" that was in the details. NOW they want the past eight year binge for free. Hehehehhe.....sorry Greece. When you dance with the devil.....you pay.

We danced too. We danced even longer than Greece. Our spending didn't go to vacations for the people and retirement starting at 55 or swimming pools. Our spending over the last decades went to our proud military and its wars all over the world. It goies to the weapons programs that make us the most feared power on earth. It goes to the programs that help us entice men and women to serve our wars. Six-figure college scholarships. Military retirement by 40. Health care for life. Not too bad in this economy if live to collect and most do. Unfortunately for the gravely wounded the VA system leaves a lot to be desired. Someone has to pay for our military might since we have been borrowing trillions to support it. Don't forget our retirement doesn't start until 67. We don't have nationalized one payer health care. And of course we can't tax the rich like Ike did in the 50s by raising the marginal tax rate on all yearly income over 2million to 90% rate. Just keep kicking the can down the road and keep kicking grandma in the gut.

Keep it simple we are debtors. We are going to try and keep this going another year. It means we will have to print money, not just for us but for many of these ailing economies. Then we will pull the plug. Can it all come apart sooner? Absolutely. So just be aware we are playing with fire.

The miner's core is painful but the cash in reserve will be put to work if they drag this pig down to $HUI 426 area......Gold and silver eventually will be much higher. Just buy the physical if the market roller coaster is too much.

gl all.

Ugly 50/200 bearish cross.....on $HUI

32 comments:

  1. http://news.silverseek.com/RickAckerman/1309240920.php

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  2. Latest Clif Droke article:

    http://news.goldseek.com/ClifDroke/1309183242.php

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  3. Latest article by Connor:

    http://news.goldseek.com/GoldSeek/1309183063.php

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  4. GDX bearish 50/200 cross..........katy bar the door.......

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  5. Ugh. And I was just liking the fact that silver is hanging above 33...my they are tricky!

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  6. Kli, I have that cross on 6/8...what am I doing wrong? Thx.

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  7. I posted the $HUI chart above but the GDX is uglier

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  8. Have to show this.....validates my belief they will take HUI to 426 area.......Ben either steps in heavy or we are in depression this year

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  9. Hello the GDM daily and weekly and the HUI weekly monthly is much more positive for the miners...

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  10. Hope silver goes up this week so I can reload shorts, meanwhile another good day for scalping stocks like SINA!

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  11. kli,

    You are already in green with YONG, good scalping day for LNG.

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  12. Liquidity in ALU never an issue, the elephant has moved nicely since Friday's closing price, heheeeeee.

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  13. Yep JOE, ZSL was a bit of fun last week. Nothing like having the FED, JPM et. al. with you as you short.

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  14. Sean,

    Move in the same direction as FED and JPM when it comes to making money and never let your dislike dictate how to trade and you will do fine.

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  15. Inlet said it best yesterday in his blog which is trade what market gives you, not what you want it to be.

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  16. By the way folks, do not limit yourself by focusing on Gold & silver all the time, there is all kinds of action in other places as well, the name of the game is making money from market regardless of sector. It would be terrible if kli's blog is only known for Gold & silver, expand your horizon.

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  17. I have no intention of having my own blog but if I did, I would not post or focus only on oil, Gold & Silver. It's never good to typecast yourself especially when it comes to market. I know you guys like to talk about Gold & silver, so I talk about it but when it comes to trading, I spread my focus all over the place.

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  18. SPDR bounce....weeeeeeeeee (profits on the second e)

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  19. RENN starting to make a nice move after it hit low of 6s.

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  20. The silver "bounce" seems pretty muted. I would be happy for it to go up this week to add though.

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  21. Homer,

    Did you see this?


    http://finance.yahoo.com/news/AlcatelLucent-Innovation-prnews-2642820197.html?x=0&.v=1

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  22. The daily SLV:

    full STO at the bottom

    MACD Histo ever so slight sign of a new bull move

    Daily candle: DOJI spinner

    To me it seems that slv should sell off more..a lot more. First perhaps a move to the upside.

    Can't have too much deflation too fast.

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  23. All,

    Today the flow of money was in the medium cap chinese ( not small cap reverse mergers) Internet & facebook stocks which went public last yr thru IPOs, they have been shorted heavy and today was short covering day for them, mainly YOKU, QIHU, and RENN. These stocks hit new 52 week low yesterday or the day before and today went thru squeeze. The large cap chinese Internet stocks like SINA started the squeeze about a week or two ago at 78 and today it closed over 100.

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  24. Kli,

    Look at yesterday's closing on YOKU and the high for today & the closing, the same for QIHU and RENN. That's how the market works, it's coordinated and managed by the network of the big boyz thru shifting from sector to sector and powerful coordination.

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  25. Take a look at CHNG.....fits your book Joe.

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  26. kli,

    CHNG is small-cap chinese stock which fits into the suspicion of accounting and auditing issues and danger od delisting, that's not what I was talking about even though these smaller ones go thru squeeze as well, what I was talking about was actual mid-cap or large cap chinese stocks which have been listed on U.S. indexes thru regular IPOs and not reverse mergers that small cap go thru and also the mid-cap stocks have much higher volume daily than small ones.

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  27. Joe,

    RENN-Check out the put/call..might have topped

    http://www.schaeffersresearch.com/streetools/indicators/equity_volpcratio.aspx?Ticker=renn

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  28. Chuck,

    RENN was a day trade today based on short squeeze I noticed, I will see the tape and action on it again tomorrow to see if I want to re-enter for scalp again or not, the same for YOKU and QIHU. What I like about the beaten down mid-cap chinese stocks is that once the squeeze starts, the volume gets real high and percentage gain is good enough to hit it for big scalp in one day and then check again to see if there is more squeeze left or not.

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  29. Joe, smart trading you do well..

    http://www.vancouversun.com/technology/EXCLUSIVE+water+shortages+climate+change+could+provoke+wars+report/5019998/story.html

    http://www.guardian.co.uk/environment/2011/jun/28/climate-change-sceptic-willie-soon

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  30. Chuck,

    The key for me in the current market daily is once I target a specific stock I have been watching for a while, including the pattern of behavior, I focus on the volume, price and then which big boy is playing it and in what direction, I have to see it in real time and then I will enter heavy, take a big chunk and exit.

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  31. I like your plan above, adding that if personal income tax were 90% over 2mil, you could likely afford to abolish the taxation of corporate profit. This way only personal, individual gain is being limited and discouraged while profitable industry itself is unhindered.

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