We're all dancing on strings. The confluence of emotions such as fear, greed, and anger provide the perfect recipe for the precious metals trade. You may view this trade from your perspective, but remember the trade is comprised of much larger entities than you. Also there is a big difference between the precious metal's bullion trade and the precious metal's equities trade. Unfortunately we do not have a crystal ball to look at the players on our side and on THEIR side, but THEY do. They can see every move you make in this trade....and WORSE they can predict your move and the other players moves....at least from a "Macro sense". And just in case they trip and make a miscalculation they have the tools at their disposal to "correct" course. Much of this is from hundreds of years of human behavioral studies refined and perfected and mathematically applied to the market. It may sound far fetched to some of you that believe there are independent forces that still comprise the market and I understand your hesitance to absorb this....but that IS the game. I have seen these forces in play as many of you have. I have experienced all of these emotions myself. I have been awakened early in the morning by knocks at my door asking me for money to cover a margin call after a position was lock limit down two days in a row. I have awakened to learn my own NON-leveraged positions moved 6 figures against me overnight. I have awakened to learn more than once that I have lost 6 figures because a biotech did not receive approval. Stubborn cannot be your emotion then....you MUST cut your massive losses and move on.
I am not saying that you will lose everytime, but unless you try to understand the game then you will ALWAYS lose in the long run. I was once asked by an elite market participant what the purpose of the stock market was. I knew he was testing me rhetorically but I was surprised by his blunt answer when I asked him the answer.....he replied matter of factly"to take your money". The purpose of the entire market was designed to suck capital from its participants by the insiders. Instead of giving an erudite, complex dissertation on free markets, it was just that simple....a casino. He then went on to explain the nature of human behavior and the interactions of the herd mentality and the use of emotions to drive the herd over the cliff. It was all calculated to appear random, but it was anything BUT random. It was predicted, measured, then executed with efficiency and extreme prejudice if necessary. If it meant taking out a big Hedge Fund then it was done. If it meant destroying an opposing group of Hedge Funds then it was done. Retail traders were the easiest. Emotions of fear or greed could be marshaled through some well placed main stream media stories with the usual cacophony of accompanying pundits to drive home the suckers. Even large trading houses could be played by the same emotions and tactics. If necessary they could even be destroyed. After all, you can only have so many alpha males in the jungle.
That takes me to our current state of the game or more specifically to my focus on the precious metal trade. I noticed the increasing emergence of two emotions recently with this last market takedown......FEAR and ANGER. I am not immune to these emotions but I have not personally experienced much of these over this nasty takedown. One reason is because I prepared myself for it. I have written numerous times this trade was still crowded and they DONT want you in it. I cannot predict the short and intermediate direction in this trade because of its COMPLETE manipulation by the Fed....ultimately I felt my research and understanding of the market could withstand their assault on my position if I was caught in a large position. Nothing is guaranteed but I believe that good miners will become great miners as gold and silver continues its bull run. Can this all go wrong? YES YES YES....you are in a casino and you DONT have to play. In fact you should not play if you can not afford to lose. Anger, fear, greed, are emotions that must be CONTROLLED. NOT entirely eliminated but controlled and understood. Remember NOT eliminated. They can be used to your advantage. I Stubbornly held on to a large position of PPP on its last run from 2.50 to 8 dollars. My GREED existed but was held in check and I exited most of my position at an average over 7 dollars. I am not trading most of my miners whenever this next run comes unless they reach extreme overbot conditions on the daily or weekly. Watch how devious the volatility and moves are. It should be just as diabolical as the last year has been.
There is no shame in getting out of these trades and I fully expect many of you to exit. That's the game. We are in a collapse and I wish that it could be sugar coated for you and sprinkled with pixie dust. If you can't see what's coming after watching Greece, Spain, Italy, Portugal, Ireland, Cyprus etc. then you definitely need to get out of this market fast.
"I believe that uncontrolled basic emotions are the true and deadly enemy of the speculator;
that hope, fear, and greed are always present, sitting on the edge of the psyche, waiting on
the sidelines, waiting to jump into the action, plow into the game." Jesse Livermore
These were big reversal candles today and many had volume. Should be a nice move ahead but don't expect it to be easy for you. gl