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Capitulation

Bob Moriarty
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Feb 21, 2013

At every top in a market, any market, there are 100 reasons to buy. That’s why you should sell. When everyone knows how good the story is, there are no more buyers and the market can only go down.

At every bottom in a market, any market, there are 100 reasons to sell. That’s why you should buy. When everyone knows how terrible things are, there are no more sellers, only buyers and the market can only go up.

For the last month there have been no rational sellers of junior mining stocks or gold or silver. What has happened is that people with margin accounts and some big name mutual funds have been caught short and were forced to sell at any price.

Wednesday February 20 was a day of total capitulation with sentiment matching the record lows of late 2008. 2011 was a disaster, 2012 was a disaster and 2013 even more so.

But 2009 and 2010 were wonderful.

It’s a bottom.

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Bob Moriarty
President: 321gold
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