Thursday, October 11, 2012

GOLD TRADERS SURRENDERING

The purpose of the current tree-shaking is very effective. When you have leveraged traders in a hot market, nothing can cool off a trade better than just pushing the trade sideways while chewing up the mo-mo crowd with a sentiment killing, decaying leverage trade. A significant number of these new weak hands will give up and exit this trade. These are not retail, they're hedgees, trying to front run the big boyz. Nice try but they're getting chopped up and puking. Just as they do the real power behind the trade will suck up these weaker shares like a hungry hog in slop. Its the game. Its worked for decades and decades. Now they even have new technology to aid them with Algo's and HFTs but the basic strategy remains the same. Shake the leaves and pick um up cheap. This trade turned back in the Summer....it was a stealth turn but when the big up move began a couple of months ago, there was no mistaking the trend change. Ben's QE to infinity just confirmed the technical picture that was already there. NOW we are into a massive move. When this game is over most of us will not be ANYWHERE near this trade. It will be that massive and the volatility THAT dramatic. It will shock you to your core. Short term correction now, so enjoy. Its been a very busy week for me, but the next two will be much better so I hope to join the comments more....gl

13 comments:

  1. As always, many thanks. Like the Big Boyz, hoping to pick up some cheap shares in here. Have a great week-end everyone.

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  2. Happy Friday!

    Welp, the FED has the marbles and controls this game. They control the ALGO inputs...the price of gold, the vix, the cost of a barrel of oil, the value of the USD, the word cloud of the media....Hard to gain ground.

    In the miners just add the dips.

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  3. IMHO, Today CNBS showed their hand and picked their candidate with vigor. Wall street wants Romney. Hmmm let me think...what can Wall Street do in the next weeks to cause Obama grief?

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    1. I agree. Market cannot hold gains and thus will be heading lower. Given a Romney win, Coal should do well.

      ACI, JRCC, KOL

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  4. I like those picks Silver-King.

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    1. I'm jumping in Nugt here...was hoping for 15.50 as it seems like near term support

      in clwr also with bounce off 360sma for scalp...
      http://s16.postimage.org/4i58sqxcl/clearwire_10_12.jpg

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  5. I can't follow u in Chuck....Wait and see what the spx does. Yesterdays close was skewed to the downside. Possible kaboom moment in the works.

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  6. Added a little HL @6.41. Traded aci in the past, may dip in soon. Electric co. here (Duke) using clean coal.

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  7. May have another week or two of sideways movement to flush out the hanger on leaves.....but NUGT will be fine if you can withstand a final shake

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  8. sectors like coal in the beaten down energy area will be some things to watch when you exit the PM trade......start making a list

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  9. euro weak...pm's are feeling it. spx in a bear flag.

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  10. I see no reason technically for metals or miners to close strong today should remain weak

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  11. Kil as you posted.....GOLD TRADERS SURRENDERING

    as you all know I bought SLW & SSRI at 27.00 & 10.50

    I had a chance to sell SSRI at 16.50......trading now at 14.50

    pissed of at myself..

    so at this time I will dubble down on all my trades...





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