1. This morning, the battle of the head and shoulders patterns makes its move from the bullion arena to the gold juniors arena for you. As I write these words around 4am, the bull side of the equation is showing some teeth. Click here now for a view of the bull side of things. GDXJ H&S Pattern Chart Battle.
2. Just as no technician (or fundamentalist) knew gold junior stocks would suddenly form a big top pattern in October, none knew the juniors would suddenly form a powerful bottom formation now.
3. Yet, here it is! The head and shoulders bottom for gold juniors now! Those who sold all their gold into the lows, or worse, shorted it, might be a little nervous this morning.
4. So they should be. This is the market, and the greatest wiener is the person who can sell the most gold into the most weakness, after the neckline of a head and shoulders top pattern is broken.
5. The winner is the person who can buy the most gold on the most weakness and sell a portion of it into strength, working to build more ounces of wealth.
6. How many times have I said, “Gold turns up when you feel the most negative, when your knowledge, and mine, is greatest that it must continue down. In the market, bet against what you know. Buy into the declines from head and shoulders top formations, all the way down”.
7. How many listened? More importantly, how many took action? It’s too late now for those of you who failed to buy GDXJ into the lows of $32. It’s not too late to buy some of the individual juniors that have yet to move with GDXJ, with limited risk capital in a pyramid formation of buys into price weakness.
8. Not all the juniors have jumped with GDXJ as it tracks bullion higher, so you can still act on those!
9. Here’s a look at the Gold Bullion Chart early this morning, blasting thru the $1370 resistance. What you are looking at is a tidal wave of loss booking by the top callers. The multiple H&S bottom pattern targets the $1400 marker, and we are now $65 off the $1310 low.
10. As price blows through $1370, the failed short positions of overleveraged speculators are sadly passed from their weak hands to the strong hands of….the banksters. Don’t chase price and buy gold from the banksters as it soars. You won’t like what happens to you.
11. “Wheat advanced in Chicago and traded at a record in Zhengzhou, China, as demand increased and on speculation a drought in the Asian nation, the biggest grower, may damage plants. Snowfalls in China’s major wheat-growing regions failed to ease a drought and the dry spell is likely to affect crops, Chen Lei, deputy director at the State Flood Control and Drought Relief Headquarters, said Feb. 12.” – Bloomberg News, Feb 14, 2011.
12. Not many people know that China consumes almost as much wheat as it does rice. China consumes about 8-9 times more wheat than Egypt consumes. Other than Bob Moriarty, how many people in the world do I think really understand what soaring gold is going to do to the price of food, and to civilization itself via mass starvation? How many even have a tiny clue? How many people do I think really understand how dire the situation is? The answer is close to… zero.
13. Look at your obsession with your paper account dollar valuations, versus the tiny effort you put into understanding Gold as money. Paper is currency. It is not money. Think about the tiny effort you put into building ounces of wealth, as paper currency rallies against gold money. Think about higher gold as: the wrecking ball of civilization. Because that’s exactly what it is. You now are beginning to understand… The Gold Punisher.
14. Meantime, Elmer Fudd Public Investor keeps cheering Ben “Dr. Pinocchio” Bernanke and his Quantitative Easing “solution” as having saved you and fixed everything, with a couple of points of marked to model OTC derivatives GDP growth.
15. In contrast, I keep telling you nothing is fixed, nothing is saved, and now hyperinflation is a real risk. The Dow soars higher, as institutional money managers, who understand the real consequences of Quantitative Easing and Mark to Model Lies accounting, fear a dollar crash and are already pouring money into the Dow. This is only the beginning of the hyperinflation of the Dow. Buy all corrections or be obliterated. You totally blew it at 6500 and now are wasting time trying to make micro money shorting it, while the world verges on total hyperinflationary implosion and starvation.
16. You saw Egypt burn, just based on wheat tagging the $9 a bushel marker. What happens when wheat hits my target of $20? The answer might be:
17. You burn. Meantime, feel free to continue to stare at the head and shoulders top on gold and imagine your paper trading accounts are all that matters. Hide under your desk while blubbering that gold might drop to some paper widget number that seems important to you, so you better sell your gold before it goes to Armstrong’s $1100 number, right? Pretend Armstrong is wrong so you don’t have to think about it. All heads report to the sand, right?
18. Wrong. You better buy more if you are lucky enough to see anything close to Armstrong’s numbers happen. You better pray that Gold goes lower and stays lower, not higher, because what is coming if it goes higher is a horror most of you can’t even imagine. Keep in mind the minor detail that any one of us cheering gold higher might be….cheering for starvation. Remember my words back at gold $900: Don’t wish for something too hard…or you just might get it! Well, you are going to get it.
19. President “So what if a few hundred million people starve to death as we wreck the dollar, there’s always a few who fall thru the cracks for the good of all” Obama is working hard at his post. He’s working together with Ben “Dr. Pinocchio” Bernanke and Tim “The Terminator” Geithner at the tripod helm of the Good Ship Hyperinflation.
20. They hold a steady keel. President Obama just announced his first ten year plan. Nothing like a good ten year plan from the Gman to fix America! Fix a debt crisis…by borrowing more! President Obama states that America’s Gman will borrow a minimum of $600 billion a year for the next ten years. He has volunteered to personally kick off the hyperinflation main act himself, with a $1.6 trillion super-debt for 2011.
21. Let’s have a round of applause for President Hyperinflation, Dr. Pinocchio, and The Terminator. The Golden Tripod! The tripod’s actions have ensured 1.6 trillion in fresh money borrowing that you know about. How much is being printed by Dr. Pinocchio & The Terminator that you don’t know about? Only the banskters know the answer.
22. The bottom line: The deal is pretty much sealed on a food prices causing worldwide chaos, and the starvation horror show has barely started. Like I have told you only 1 billion times, the crisis has barely started, and the only question is: Are You Prepared?
23. Can the members of the Golden Tripod regain their sanity and work to bring down debt levels? Starvation is pretty much a done deal now, so the next question is: Will starvation be followed by war? Suggestion: The answer is not in the head and shoulders top fairy tale formation on gold. The answer is in the actions of the Golden Tripod. Will the bond market be imploded by the banksters while margins on gold futures are cranked to halt the price rises of wheat, rice, and all foods, and cause those still under the spell of paper dollar account valuations to hand all their gold to the banksters just in time for the starvation phase of the crisis to move to the war phase?