Gold Stocks & Uranium: Twin Sprinters!
Sep 28, 2010
1. As we move into the gold revaluation phase, the banksters are taking the mask off the recovery puppet. Elmer Fudd Public Investor is about to watch his Green Shoots WienerPlay turn into the Texas Chainsaw Massacre, with Elmer playing lead victim in the horror movie.
2. Some writers are noticing that “China basically owns the USA”. I would modify that statement to, “The banksters are very happy with the progress of their scheme to move the world economic centre from America to China. Just as they were happy with the action on their previous scheme to move the centre of action from the UK to America.
3. Regardless of your take on the fundamentals of the current China-USA relationship, and regardless of the shorter-term hit that appears near at hand for all risk markets, the fact is that the major commodity assets are “must own” assets.
4. As the mask is taken off, and the economy is revealed as a corpse, the public will clamour to be “saved” by any solution the banksters propose, and gold revaluation is at the top of the “QE has failed, what do we do now?” list.
5. The theme all the way through this crisis has been: OTC Derivatives. The sale of the bank prop trading departments are better described as the sale of another OTCD bag of worthless garbage to a new crew of selected bagholders.
6. Over the past month I urged those of you who believed you were somehow “missing out” on the gold “supermove” to look at other assets in the commodity asset space.
7. Uranium and uranium stocks are near the top of that list. It’s just plain common sense that if the plan is to devalue the dollar against assets to provide relief to debtors, then you want to own commodity assets.
8. Here’s a look at the uranium chart. The Daily Chart shows substantial basing via head & shouldering action. For those of you who followed me in, it’s already been a solid ringing of the cash register on uranium and on uranium juniors, while you are moving back to the buy on selected gold juniors situations.
9. The Weekly Chart for uranium shows what could be the left side of an even bigger basing formation, with the “breakout” point coming around the $8.50 level.
10. I’ve asked my web app fellow, “superman”, to see about modifying my exclusive Pyramid Generator to handle junior gold and energy stock odd lot purchases and sales. That’s not a simple task.
11. When you place an order to buy, say, 247 shares of a junior, the exchange-mandated round lot is 200 shares, and you often get filled at 200 on a 247 share order. That’s not a big discrepancy in many cases, but for the higher priced juniors it can be a problem at times.
12. Gold was “hit” last night, but came right back. This may be the first taste of the coming Gold Volatility Theme. I believe gold volatility will dominated even gold’s price rise, as the dominant theme of the next 12 months.
13. On the comex about 3000 contracts changed hands as my partner gold artist noted this morning that it appears the banksters have a new game in play, called “death of a thousand cuts”.
14. Click here now to view the Gold Volatility Chart. What I want you to notice is the volume on both the hit, and the vertical upmove following that hit. That entire move is a loss-booking exercise for leveraged funds. A bail on the down move of longs coupled with the implementation of new shorts, followed by a bail of those shorts just hours later, coupled with the implementation of new longs to avoid “missing out”.
15. That volatile price action and mindset is irrational. It is irrational thought and action, in size, that produces volatility of price, in size.
16. What is the most important chart in the world right now? In the biggest picture, the gold bullion chart, the thermometer of the economic health of the world, is always the most important chart in the world.
17. But in the here and now, the world’s most important chart, in terms of risk and reward for you, is the GDX Weekly Chart.
18. Click here now to view the "Ultimate Line In The Sand"
19. You are almost all heavily invested in gold stocks, some of you with hundreds of millions on the line. Speaking of lines, note that red line in the sand on the GDX.
20. Here’s where I want you to focus: You. We are at a major crossroad, right here, right now. Anything can happen now. We could blast over that line, igniting the mother of all gold stock buy frenzies.
21. We could also pull back, easily to as low as the low 30s on the GDX chart.
22. Note the blue circles I’ve drawn on the GDX weekly. A move down to the low 30s area would add exponential strength to the already massively powerful bull continuation head and shoulders pattern that is in play now.
23. Are You Prepared? Are you prepared for either a break to the upside, but also prepared for a down move before that upside breakout occurs?
24. Never in the history of the bull market has it been so important to hold both gold stock core positions and high cash levels. If gold pulls back (and that pullback could come in a death of a thousand cuts drift, not a crash), you must be an aggressive buyer with pre-set buys in place all the way down to the low 30s on the GDX. If we blast thru the red line in the sand here and now, you must not blow out any core positions, because that up blast has huge odds of being only the very start of a mindboggling 3 to 9 month upside super move.
Sep 28, 2010
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There is an approx $700 trillion OTC Derivatives Iceberg with
a tiny portion written off officially. The bottom line: