Friday, March 23, 2012

WHERE IS THE GAME HEADED?

Perhaps the pie charts can give you a clue. You have to only take a look at these simple purple charts and as they say a picture is worth a trillion words. This week only reinforced my opinion that the boyz are accumulating the weak hand's miners shares as they reinforce the conditioned stimulus that the precious metal trade is NOT a safe haven. Not only is it NOT a safe haven but they want you to understand it is hazardous to your financial health. Just ask all of those MF Global customers. They were taught a lesson and it wasn't something that I laugh at. The casino is to be feared and playing in it can cost you dearly.

Next week promises to be interesting as the COT report shows the commercials are covering shorts in gold and silver and adding longs. When backwardation (as it is now) comes into play in gold you can count on this beatdown nearing a dramatic end. I hope you all have a nice weekend and if I have time I will update with some new vids. For now you can look at some charts I pulled up after the market closed today.

14 comments:

  1. http://www.zerohedge.com/news/tungsten-filled-1-kilo-gold-bar-found-uk

    ReplyDelete
  2. From McHugh's latest commentary (received this email as a nonsubscriber):

    Mining Stocks and precious metals are setting up now for a powerful and significant buy signal that should result in a significant multi-week, perhaps even multi-month rally. We will be opening new Call Options positions in ETFs that represent Mining Stocks, Gold, and Silver once we get new buy signals in our HUI Purchasing Power Indicator and HUI 30 Day Stochastic. This weekend's report shows historic charts of the HUI 30 Day Stochastic's signals correlated to resultant price moves. These charts will show you there is excellent correlation, especially when those signals come from extreme oversold (in the case of buys) and extreme overbought (in the case of sells) levels. We are there now (Oversold 30 Day Stochastic, among other buy set-up conditions). The set up is here now for a wonderful trade opportunity. This will likely be the trade of the year, or at least the best trade of the first six months of the year (as we believe there will be two incredible trade opportunities in stocks over the rest of the year, one using calls in a few months, the other puts later in 2012). These trades should be home run trades.

    ReplyDelete
  3. I'm playing that way randall but one note ....there is room on the monthly for 3-6 weeks of a further beatdown...i am obviously gambling that we bottomed but there is room for more downside on the monthly....Red wat do ya see on yours

    ReplyDelete
  4. The chart for SVM showed a nice doji on 3/22 and a long green candle on 3/23.
    The RSI appears to be crossing 50. All potentially positve signs.

    ReplyDelete
  5. yes doc...many of the miners are set up for a near term turn here....whether it occurs is another story but the sentiment in the sector is terrible.....so in a few weeks I'll let you know.....hehheheheh

    ReplyDelete
  6. either way I'm an "investor" now

    ReplyDelete
  7. "investor" haha, maybe i am early, but i was buying EGO and PAAS last week, and nibbled on GPL. the risk/reward setup for EGO and PAAS was too hard for me to pass up. I rolled the bones, lets see what happens.

    ReplyDelete
  8. Bought a little ssri to add to the collection, ;). Also got some exk earlier in the week. Unfamiliar with McHugh, but is he saying calls now/puts later on Miners or just the market in general? I have long thought the markets will sell off in late '12 due to higher cap gains taxes coming if for no other reason.

    ReplyDelete
  9. everyone believes the market crashes in late 2012 sis....so be wary...may be before may be a little later.....

    ReplyDelete
  10. GM all! A little concerned since all of my positions are Green this morning, :). Thanks for all you do Kli. Have a great day.

    ReplyDelete
  11. Green here too.
    NKTR is having a good day, since they might receive royalties on two products they helped develop.

    ReplyDelete
  12. Green is good :} Two day's in a row!!!!!


    Hopefully, the train is leaving the station for a nice long trip!


    Don't like "Investor" status nowadays..........

    ReplyDelete
  13. money flow "appears" tepid in PM equities as Ben confesses the printer will run.......stay tuned for more of "the game"

    ReplyDelete
  14. The system will be reset sometime starting within the next 6-18 months leaving all the plebes with worthless electronic paper and those at the top with the "claim" on all the natural resources, land, pm, corporations, food, etc...Only one problem, mother nature is very angry...Chile and Switzerland are no longer truly safe sanctuaries, maybe from some of the mobs if you get there, but the ground be a shaking and the weather be a changing.

    Markets still in hang time. Still room to move up to 1450 on weekly and monthly charts, but to much time in the casino can be very detrimental to your long term survival past 2013.

    http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Index&symb=sp500&time=12&startdate=1%2F4%2F1999&enddate=3%2F30%2F2012&freq=2&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=1&maval=20&uf=8&lf=2&lf2=32&lf3=4&type=2&style=320&size=4&x=19&y=13&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11

    ReplyDelete