I'll bet there are are few of you paper ponzi losers still out there. I know that like me some of you have decided for your own reasons to play some of the paper casino games. Like me, some of you still look at technical analysis. Like me some of you believe that metals will be the best way to weather the storm, but you think some paper exposure may be a way to diversify yourself outside of your "other" physical investment ideas. You think you just might beat the house.
I am not much of a casino gambler, but have played the tables at a VERY limited exposure for decades at virtually every casino in Vegas and beyond. I believe you cannot beat the house, but you can enjoy the table games with your predetermined stake. In other words, I always risked ONLY enough money that if I lost it all, I could still enjoy my trip and go home and care less. In other words I viewed it as entertainment and always played 21. It was all about math.
Today's market is very different in many ways from a casino, but alike in several important ways. First......its still about math, but the house can print massive amounts of chips and you will have a very hard time with a house that has that much power.....Secondly...this house can change the rules at will and there is NOTHING you can do about it. Thirdly.......the house knows in advance what the cards are that are about to be dealt.
So you see......you are playing in a very tough environment and I doubt that most of us get out of the paper casino with our stake. So can you go home after you lose all of your stake and NOT care and sleep well at night? You better answer that question before you stay in this current Precious Metals bull market.
I know I know....you're asking yourself WHY leave if the game is now a multi-year bull market? Okay.....here's something to consider. IF you think you can get out of this casino with your winnings before that hooker that is setting on your lap can mickey your drink and have her pimp beat your brain to a pulp and take your winnings from you.....then sure....stay and play.....because there is a good chance that metaphorically they will.
Next ......for those still reading and giving a shit. Where are we in the guessing game? Several ways I can answer that. First....they want you OUT of the miner trade. THEY are the big money trading desks. Why? Because you're sitting on shares they want...and they don't want to pay you a fair price for them. They want them at a discount and they will shake you out with your stupid stops and puts and paper options so go ahead and try and out trade them. Secondly the real power is trying to keep gold in a range here for geo-political reasons.....(which in a weird way works to the miner paper trade but I will keep that reason to myself...;-) )
So again......WHERE are we? You know you're scared. You better be. If you aren't then you don't know the game. They're gonna shake your scared, shitless dumb ass until you puke up your shares and make a mistake. THAT is what they do. THAT is where we are. THAT is why the miners are CONsolidating. NOT to let you in cheap, because you aren't that smart. They are making you rethink your decision to be in this paper trade. AND YOU ARE. Don't lie......In fact again YOU most likely have no business being here in this game.
Finally if you insist on getting fleeced in the paper.....then be aware there could easily be another down leg here in the miners. My guess is we might instead get a nice move up on the daily technicals which are bottoming and on the FOMC news Wednesday. Of course YOU are the player and I will not tell you what to do. YOU have to decide punk.