Submitted by Stewart Thomson:
Big bull market moves occur with enormous negative sentiment, and it is the liquidity flows of short covering that produce the most violent jumps in price, to the upside.
Those factors are in play now, but they would be “outrageously in play”, at $1400-$1450. Have no fear of a drop to that price area. I would not sell any holdings now, to avoid such a fall, even if I was 99% sure it would occur.
If the gold price fell to $1432, what would probably follow is a relentless rally, straight to the $2000 area.
2013 Silver Eagles IN STOCK As Low As $2.59 Over Spot at SDBullion!
1. Gold and silver stocks seem poised for a massive rally. I covered all my gold bullion short positions yesterday, and bought silver stocks.
2. Whether the recent lows represent the “ultimate bottom”, or there is a bit more downside to come, probably doesn’t matter.
3. Please click here now. You are viewing the daily gold chart, and a near-immediate move towards $1620-$1625, looks very likely.
4. From a technical perspective, I would prefer to see gold decline to the $1400-$1450 area (roughly a 10% drop).
5. Many momentum-based trading funds would likely short gold if that happened, believing that major support had “broken”.
6. Big bull market moves occur with enormous negative sentiment, and it is the liquidity flows of short covering that produce the most violent jumps in price, to the upside.
7. Those factors are in play now, but they would be “outrageously in play”, at $1400-$1450.
8. Have no fear of a drop to that price area. I would not sell any holdings now, to avoid such a fall, even if I was 99% sure it would occur.
9. If the gold price fell to $1432, what would probably follow is a relentless rally, straight to the $2000 area.
10. In my professional opinion, if gold declines to under $1500, it’s an opportunity for the entire gold community to act as a cohesive unit, and buy this market fairly aggressively.
11. If the bottom is really already in place now, and gold begins a major rally, investors who have bought this general price area should do very well.
12. Please click here now. Double-click to enlarge. That’s the GDXJ daily chart. Note the broken black power downtrend line.
13. That downtrend line has been broken, and huge volume is occurring. Is a “changing of the guard” in play? I think so.
14. Please click here now. That’s the daily silver chart, and a nice bullish wedge pattern is forming. If silver does well, silver stocks could do even better.
15. Please click here now. Double-click to enlarge. That’s SIL-nyse, a silver stocks ETF, and it seems ready to make a beeline for the $20.50 price zone.
16. I expect junior gold stocks to outperform silver stocks at the start of the move, but then silver stocks should take the “pole position” in the race up the price charts.
17. Moving averages can be helpful in calling a possible turn in the market, but remember that turn calls should be used to indicate what is coming for items that you bought at points of maximum emotional weakness, and sold at points of maximum emotional strength.
18. Let’s take a 2nd look at the GDXJ daily chart, just using the 5, 15 series of moving averages. Please click here now.
19. The gold community has nothing to fear on that chart, nor on any other chart, except fear itself.
20. Championship fighters don’t try to avoid every blow. They absorb them. Approach the market with the same mindset, as a champion.
21. Throwing big haymaker punches in a fight is like “backing up the truck” in the market, with the mindset that price is about to “get away”. The end result is generally not a good one, with such an approach. Don’t be afraid to buy something here, but don’t be too sure that the “ultimate bottom” is in.
22. The 5, 15 series of moving averages is very close to producing a substantial bull move signal, for all junior gold stock investors!
23. Please click here now. That’s the silver stocks ETF, also showcasing the 5, 15 series of moving averages. Silver stocks are more volatile than gold stocks. The red boxes highlight a number of “whipsaw” moves.
24. My suggestion, to silver stock investors, is follow the gold stock price charts more than the silver price charts, to cut out the noise, anxiety, and to seek maximum profit!
Special Offer For Website Readers: Send an Email to freereports4@gracelandupdates.com and I’ll send you my “Energize Now!” report. Natural gas has been on a bit of a tear recently, while oil is trading in a huge symmetrical triangle. Big moves may be coming soon, and I’ll show you the details of what I see on my charts, and tactics I’m using!
Thanks!
Cheers
St
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
Should their not be a question mark on the end of That
title or are we onto another hyperbole rally? Come to think of it the hyperbole here is pretty constant either direction. Still the defenition of a rally seems to be measured in cents these days.
In referance to No. 2 “ultimate bottom” Im thinking brazllian lady here.
Perhaps i need more tea? Blinking cold here!
I wish it would go up so that i could stop raping every penny from the house budget a while. I should turn the heating back on i suppose before the wife leaves me
Tell the wife that a cold house is ideal for cuddling. ;-)
Warm wife
warm life.
Gee Wally, the nice people at the Fed have smashed the price of silver just in time for all the income tax returns we free humans get in March and April. Isn’t the Bernanke just swell.
Keep buying phyz!!!
On Fox Bidness channel this morning, some clown predicts the Dow to go to 18,500! Bru Ha, Ha, Ha, Ha, Ha, Ha!!!!!!!
LMAO!!!!!!!!!!!
Yeah? Well, as long as $85B a month is pumped into the banks and then into stocks and bonds, what else can the Dow do but be inflated upwards? The economic activity in the US right now is roughly equivalent to a Dow of about 9,000. Yet, it is 5400 points above that level. This levitation, as if by magic, has zip to do with an amazingly good economy at all time highs and MUCH to do with yet another Bernanke Bubble. Like ALL other bubbles before it, it too will go KA-BOOM! Until then, however, it’s PARTY TIME!!! X-p
Maybe you should familiarize yourself with what happens in a hyperinflation. Martin Armstrong (furthest thing from a ‘clown’) predicts a minimum 20,000 DOW and potential 45-50K. Stock Market’s inflate – like food, oil, and PMs.
You should stop thinking with your emotions and the ‘we vs. they’ possibilities. Paper Gold dropping is incredibly BULLISH for physical. The separation between paper and physical was never going to happen on the upside – but only the downside. One day you won’t be able to buy Gold at any paper price – paper will be that devalued and physical Gold will be THAT scarce.
NOTE: The SGR rose in one week from 15:1 to 160:1 in October 23 1923 Wiemar Germany.
“ If the gold price fell to $1432, what would probably follow is a relentless rally, straight to the $2000 area.”
It is more likely that some Chinese gold-hauling ships would pull up to the US docks and say, “Fill ‘em up, Joe, and make it snappy!”. :-(
I just hope that the prices of precious metals stay low as long as they can so that we can all stack precious metals faster, cheaply and easily. Gold falling at 1432$ per ounce? It’s been a long time since it didn’t fell below 1500$ which is a sign that inflation is happening and that it would still continue in the future.