Sunday, September 9, 2012

YEH BABY!

What a difference a couple of weeks make. Suddenly Precious Metals is THE HOT TRADE! Of course no one is in it yet, and the ones that are in it are so scared that they will cough up their shares upon the first tree shake. When the puppet masters yell BOOO and flushes the first stops the leaves will scatter.......except for the real money in this trade and they will just add more shares on the next pull back. That's all they are waiting for. Look what the big boyz can do in this game. Look at AUQ, CGR, PAAS, SSRI, AUMN. Just CRUSHED! Anyone that had these shares wanted to puke these stocks up at their bottom and swear to their loved ones that they will NEVER gamble again! These boyz play for keeps and they know very well your tolerance. Fractals work for a reason.....they represent psychological breaking point for traders. Now they have even further power behind their movements with the introduction of the algobots. These computers can take the fractals to an entirely new level of use for the boyz. Basically compounding the percentage of winnings by a factor of 10 over the previous trading schemes. You can beat them only if you understand that they are designed to fleece the traders but they cannot beat the buy and hold players that use intermediate and longer term strategies. Your timing may get disrupted but if you are patient and know the game you can beat the bots.

If anyone thinks that the recent beat down of the mining sector was anything but a contrived phenomenon then all that needs to be done is look back on these same miners in 2008. They were slaughtered for the sharks to pick them up for peanuts. Paraphrasing some very smart players YOU NEVER LET A GOOD CRISIS GO TO WAIST! So they were flushed to hell in 2008 and they ripped them straight up from the bottom. Will they go straight up again from the current levels?.......maybe but that is not your concern at this point and your answer WILL be given to you. If you believe you've missed the big run in these miners after many have added 40-90% off their recent bottoms then of course you probably will. We just went through a massive accumulation/shakeout. We WILL get more shakeouts ahead. Volatility is a hallmark of this sector. If you can't take it then just stay with physical. It is much easier to tolerate and in the long run may be the only way to play this game. I'm still holding my positions and could care less if they rip it down here. I have some cash to buy some miners if they rip it down since I took a small amount of profit last week. Right now I am looking for their new channels before I actively trade and that may still be weeks off to decide.

We are in the end game now and this is going to be rough ride. I can only hope that Ben and the Bankers can land this ship on the head of a pin. If they can't then we will have a lot more to manage than our gold mining stocks to worry about. GL

21 comments:

  1. Hi, everyone. Been in the Land of Oz, went to U.S.Open...no signs of distress there! Should go away more often if this is the PM result...waiting, waiting, waiting for 50 rsi to add more. Of course by the time this happens, I'll be questioning my sanity. Sure looks like a triple top on the s&p but who knows what they have in store. Great commentary as always Kli.

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  2. Great tips, I like the guidelines you've laid out here...helpful!
    Buy Gold

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  3. I had CNBC on early this morning and they were pumping hard for a QE announcement. They had one of their blond-haired "experts" on & she stated there is a 90% chance that Bernacke will announce QE3 soon (? this week?).

    The Keystone Speculator has several charts on its site this morning that show a significant top is in place and the markets need to sell off.

    If CNBC continues their pump for QE3, I would feel that we have to be careful. There is plenty of time to flush the markets, and still work the markets back higher before the elections.

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  4. Yes Doc....as always and the runup pump and dump scenario will keep a lot of money sidelined. Whatever Ben does it won't change my trade on the miners. Of course if you have heavy profit here its ALWAYS smart to take some off the table......so DONT WHINE if they flush your profits

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  5. silver now green.....hehehehe....keep buyin the bullion gang

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  6. At this point I would be surprised by new LSAP...before the elections. Loud jawboning is all.

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    1. loud jawboning will keep PMs in an uptrend...short term the might take the opportunity to whack it but my best guess is what ever Ben does will have no major impact either way.....ie a "Snooze event"

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    2. to clarify....NO major impact to overall equity market. If outright QE announced PMs should get a nice bounce. BUT they need a nice whack down here for me to get more bullish

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  7. Yeah, saw that about ZLCS. I am in at 1.10.
    They have decided not to pursue development of Synavive, a drug for Rheumatoid Arthritis. The drug works, but does not hold an advantage to drugs already on the market. So, it sounds like ZLCS is giving up on it entirely. They have other drugs in development though.

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  8. Thanks for the info Doc. I'll look into it. Might be a bargain today.

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  9. From a political point of view the dems need to get the price of fuel DOWN. Big O needs to be able to tout cheap fuel, 7.9 UE and a comfortably elevated equity market. If big O is to lose the election...what is the chance the dems had over to the GOP a comfortably elevated spx? hehehe. Turn about is fair play.

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  10. Kli mentioned ANX a few weeks ago. Been keeping an eye on it. Looks like accumulation is occurring. Going to nibble today.

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  11. Re: zlcs, looks like a 75 Million Share dilution: http://phx.corporate-ir.net/phoenix.zhtml?c=148036&p=irol-SECText&TEXT=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDExOTMxMjUtMTItMzgyOTA4L3htbA%3d%3d A friend sent this to me yesterday.

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  12. nice consolidation day ....I will post some 2 hour charts tonight

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  13. gawd, ppp is a monster. the rsi has been overbought for weeks.....If Ben really hits the ctrl-p can you imagine the commodity ramp? Holy smokes. Fuel over $5. Gold 2k an ounce at least. Food will spike. Mutual assured financial destruction.

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  14. Expected commentary on Libya today...gold down! September 11th no less..."safe and stable world" looking less likely.

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  15. KGC touched support in the 9.25 area and bounced some.

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  16. KGC now green. Trying to flush us before tomorrow. That's not nice! heheehehehe

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  17. Hey all...the Monday blog has no space for comments...hope all is well with Kli and he posts soon. Rioting and murdering caused by You Tube video--ok, if you say so. Ridiculous press conference w/no questions allowed.

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