Tuesday, December 11, 2012

BEATDOWN

Not surprising for metals traders to receive a hard shakeout, but it is surprising to those new to this volatile sector to have such counterintuitive trading. We still do not have a short term confirmed buy on the XAU, so if you are a short term trader then to the sidelines you should remain. I will reaffirm my strategy since it will not be altered and that is to hold tight and let this short term shakeout complete itself. Tomorrow's FOMC will not change the longer term metals trade one iota. Of course any announcement and I mean ANY announcement may be used as a shakeout again so please stop wringing your hands and relax. This is the game in this sector and whether you are a hedge or a retail trader the effect is the same. Emotion is your enemy and it is used to control the money flow by the market masters. They own you so you had better understand the long term trend and be able to take your pain. If you are able to see through your fear then your principle emotion should be gratefulness for the gift you have been given. As stated before but worth repeating you have been given the time to accumulate physical metal. If you didn't then I can only tell you that time is running out on you and you really need to ask yourself why you are even reading this sentence. Turn the computer off and get back to something that makes better utilization of your time.

I do know there are some veteran traders that read this blog, but there are many more not accustomed to being in this type of market. Many have not read the warnings of participants on this blog telling you the risk this market poses for you. This is going to be one of the most treacherous times to be a player in this game and more than likely many of us will be stripped bare in the paper market. You were just allowed to enjoy three years of a reprieve after a global financial collapse. A simple analogy is to look at waking up and finding yourself broke and in debt of over a million dollars with a 20K/year job. Rather than declare bankruptcy and take your medicine you are handed an additional debt of 200K and live like a king for three more years until now and declare that things "really aren't that bad". If you are in the camp of sheep that are questioning what your lying eyes are telling you then of course its a waste of time for you to read further and you probably have little really prepared for what lies ahead.  No one can really help you if you fall into that category. Unfortunately some of you do.

Stay positive with the people close to you and try to contribute positively to life. This is a short game here and as the next few years unfold the real strength of your character will unfold. Take each day as they come now and savor them as if they are your last. If you do this, then you will find many of your activities have little meaning and you will not overlook some of the more meaningful contributions you can make. These contributions involve others.....not ourselves.

Wasn't that AUMN a monster today? I wonder which miner they'll rotate into next? You know exactly what I am referring to my short friends. GL

25 comments:

  1. Well now what do we have here......

    http://www.zerohedge.com/news/2012-12-12/obama-likely-approve-gold-sanctions-iran-currency-wars-escalate

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  2. http://kingworldnews.com/kingworldnews/Broadcast/Entries/2012/12/12_Bill_Fleckenstein.html

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  3. Tom, I read the article. More trouble brewing. It will be interesting to see what date gets picked for the start of WWIII and what event starts it off.

    Both Phil Davis (Phil's Stock World) and the Keystone Speculator are bullish. Phils thinks 1450 and Keystone possibly 1460 on the S&P. Christmas is coming.

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  4. told ya that ABIO was acting weird...

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  5. AUQ about to golden cross AND MACD cross

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  6. LDK presently up nearly 13% on what will be above average volume.

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  7. Interesting. Even with the flash crash a few minutes ago (yawn), the miners ain't comin' down yet. Good call doc. Don't own auq, may buy a little.

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  8. Looking at 7.84 gap on AUQ, does that look right to you guys? Thx.

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  9. look at the gap at 6.65 in Oct......it didn't fill......so be aware....IF this takes off then bye bye

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    1. BTW I am well aware of the limits I have trading these miners and continue to try and adjust my strategies......right now it remains my strategy to not overtrade here.

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  10. Just got off the phone with my physical broker he said they were going crazy today....hehehe.....alas the paper game will ultimately decouple from physical and then physical AND paper will eventually explode

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  11. Hope they trash the PM's this afternoon....... I'm looking for some blue light specials!

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  12. Tick, tock...BB speaking in 1 hr. There's a deficit? We know they know. Somebody pushed PMs up, then immediately down just like this morning.

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  13. I know I'm rooting against my miner positions for the time being but let them play games and beat it down......

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  14. Lying bastard on now:

    http://www.zerohedge.com/news/2012-12-12/bernanke-press-conference-live-webcast

    Love that shaky voice, jd.

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    1. Yup his body language and voice say.......liar

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  15. Listening to stuff like this causes brain rot. In reponse to the question regarding the Fed's ability with a bloated balance sheet and rates at zero in 2015, to influence eco activity, the bastard said that is why we have to be even more aggressive now with our actions. Basically, the same message as "the beatings will intensify until attitudes improve" - what a quivering pile of crap. jd.

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    1. as long as the dollar remains the reserve currency then he can print....but meanwhile the accumulation of actual physical gold continues unabated and that IS a problem....How long can that continue? I have NO idea but physical gold and silver will limit the paper manipulation..including unlimited printing....stay tuned

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    2. DOLLAR being RESERVE Currency key, when its not, hope everybody is ready for $20 gallon of milk! As for BB and the rest why waste your time getting emotional only worth watching if your looking for clues or if your interested in watching history in the making....... They are all worthless pieces of chit just doing their masters bidding!

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  16. Maybe Ben's body language was signaling "buy Silver Mining stocks". SVM did well.

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  17. Another huge beatdown tonight, esp. silver. This is unusual at night (Asia). I think there's some validity to the beatings being instigated by those who want cheap in Asia/S.Am. because they know their $ holdings are becoming less valuable every day.

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  18. Here's the pdf: http://www.gata.org/files/QBAMCO-Its-Time-12-2012.pdf

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  19. I will just remind you that during the last ramp up of PM equities this summer they were frequently turned red after the U.S. markets closed then maintained red or further red during overseas trading only to be turned green once our markets started trading. This certainly lends credence to what you are saying Nancy. I guess my point is pay attention over the next few weeks to check this type of action.

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