Just another update from one of the newsletters that I subscribe to. Enjoy!!
Nov 3, 2011
1. The RSI. What a great technical indicator. Click here now to view a great RSI buy signal.
2. Fundamentals and liquidity flows make charts, not the other way round.
3. When a company gets into dire trouble, the RSI and other technical indicators can stay in oversold conditions…permanently.
4. When assets like the US dollar enter epic bear markets, the technical indicators there are like sirens on the rocks; amateur technicians surge in to buy the perceived “value”.
5. It happened to them with the Dow in 1995, when the indicators went into the overbought zone, and stayed there for years. The technicians kept shorting, trying to call the top, and failed. It’s now starting to happen with gold and the dollar.
6. What is the most shocking thing about the behaviour of Jon Corzine? The answer is: nothing. He’s a politician. There’s nothing out of the norm with his behaviour. The shock would be if he didn’t behave like he is. The only thing that shocks me is that he hasn’t demanded more than $12 million for wrecking the company, but there’s still time, so I wouldn’t count him out on that front…
7. Prepare now, for silver over $50. How should you prepare? The answer is to promise yourself not to make one positive statement about silver when it trades over $50. Fight the silver ego!
8. Don’t join the fan clubs that will sprout up when it happens. Tell yourself all the great stories about silver on each down day, now, and focus on building the number of ounces you own on these days, when you feel a little ill, when looking at the silver quotation.
9. In the final analysis, gold and silver are power, but only if you understand that the power comes from ounces, not from marked to dollar model wealth. The banksters can, and will, change the dollar value of your silver, drastically up, and then drastically down. How? With an electronic photocopier.
10. The movements between $4 and $50 have been interesting, but are really quite tame compared to what lies ahead. The storytellers will not get richer in silver. They will be impoverished by gold’s little brother, as he gives a whole new emotional definition to the term, “whipsaw”, as silver goes over $50.
11. The storytellers think it’s pies in the dollar valuation sky forever that is coming to their unchanged on the scale silver holdings.
12. Wrong. It’s the world’s biggest dollar whipsaw, and the total annihilation of the leveraged trader that is coming, and whether the leveraged trader is short or long doesn’t matter. All will be totally destroyed.
13. “He who understands ounces, makes the rules”. That is really how the statement “he who has the gold, makes the rules”, should read. No bankster can change the wealth of your gold and silver that is marked to market by your scale.
14. Be very sure that you have taken care of your silver buying business in this price area, because in the storytellers’ zone, you’ll be fed the most powerful reasons to chase price.
15. Fearing a fall in the silver price to ANY price lower than where we are now is pure stupidity. If you can’t handle a drawdown to $22 or $15 or $8 from here, you’ll NEVER handle what is coming in the reval/storytelling/whipsaw zone.
16. Silver $50 marks the END of buying silver for the rational human being, who has an opportunity to buy now with available risk capital. For the price chasing moron, a rise over $50 marks the beginning of the world’s biggest price chase, and will be followed by real suicides in the silver community, as the whipsaw moves go “off the charts”.
17. The banksters plan to create the illusion that silver is “just like gold” and we will all believe their superb propaganda, with all our hearts. Attention silver bugs: contact the storytellers and tell them to get with the program. Demand pro-silver stories now, and ounces as wealth stories.
18. Any idiot can photocopy up a big dollars of wealth number for their silver holdings. When it comes to doing it on the scale, that’s a little more difficult, & a little more real. Maybe it’s time for the silver community to separate the photocopier technicians from the scale-oriented wealth builders.
19. In terms of logistics, when a paper currency implodes, prices of almost everything soar. In the beginning (now), wealth builders get wildly excited at the quasi-real increases of their marked to dollar price wealth.
20. Then, if the crisis of the currency accelerates drastically, to the point that higher rates don’t stop the implosion, a loss of interest in actually valuing anything in dollars begins to replace that excitement. The degree of that loss of interest can be mild, or it can become quite extreme.
21. Do I think that in this crisis dollar-valuation will becomeirrelevant? I don’t think so, but that depends on how much control the extremist banksters that want starvation and nuclear war… how much control they are able to wrest from the more moderate group. The scale is certainly destined to play a much bigger role in the measure of wealth than it does now.
22. At this point, we can’t know how big the acceleration of this crisis will be, and nor can we know whether it will include items like starvation and major wars. A huge number of suicides if the bond collapses seem almost a sure thing. What you can say with great certainty, unfortunately, is that this crisis is the ideal “breeding ground” for extreme action.
23. If the occupy wall street crowd spent 1% of their time promoting gold ownership, instead of acting on their interesting theory that shutting down ports gets the banksters, they’d create real change, and real power.
24. I’ll be posting some videos on net worth allotment into various sectors. This is a very subjective and difficult area, because 99% of the allocations depend on your ability to respond to price in the surprise drawdown zone. The person who allocated zero to gold between $250 and $1000 is in a totally different allocation ballgame than the person who invested 50% of their net worth in gold bullion at $300. I’ll also be covering the key foods group area, with a focus on volume. Keep in mind that understanding wealth in ounces is more a risk management tool than anything.
Gridtime! Can you even IMAGINE the horror of suddenly waking, say 20 yrs into the gold bull market, to find that all the wealth you built in dollars is totally MEANINGLESS? When the greatest debtor nation in the history of the world is also the most powerful economic empire in the history of the world, if the situation does go right out of control, the power of the scale will become a wealth measurement force of TITANTIC power. Selling GDX or GDXJ for ounces of profit is not a game. The Graceland “Gold As Base Currency” wave surges forward, and the only question is…
Have you got your surfboard?