Thursday, August 29, 2013

HURRICANE SURGE for GOLD MINERS

Like feeling an earthquake while riding a bus, when you pass over a tsunami swell in the deep ocean, its unremarkable. When it is forced higher by the rising ocean floor it turns into a raging tidal wave, smashing everything before it. IMO, we have just passed over a GOLD Stock Tsunami wave that HAS been triggered but not broken into shallow water.

Courtesy of the same people who brought you the April 15 Tax-Day Massacre in Gold Miner stocks, the Gold Bugs Index was jammed into a falling wedge until it broke out over HUI 244 Aug 12. Closing at 253, HUI confirmed the breakout and kept closing higher, as high as 283, and may well close above the Wedge boundary on Friday of this week.
                                  

                                            POWER SURGE



 
Since I followed BPGDM I have never seen a Power Surge of this Breadth and Height. Starting down in Nov 0f 2012, the Index Zero'd out for what seemed an interminable time from Apr 15, to Jul 15, 2013, a Hell for PM Investors if there ever was........Until, it pivoted and reversed course, climbing to and standing at 55% today. Incredibly it doubled itself twice in two 4 day stints, and in the course of this 41 day rally turned into a majority of GDM stocks in Bull P & F formations. IMO, the immense power and incredible speed with which it reversed the fortune of Hard Money Investors, foreshadows even more power lurking underneath.  

                             HELL ON WHEELS

Abandoned and left for dead, as unloved as Detroit in Bankruptcy, the GOLDBUGS and INDEX were all but pronounced dead, and it was hell.

 
Hell On Wheels is going to turn out to be, imo a lot of shorts and frauds feeling as if they were run over by steel tank treads of the
2nd Armored Division. Madam Karma, being the sweet lady she is, is going to make payback quite enjoyable for Goldbugs.

WHY DIFFERENT THIS TIME ?
Lets see what we are looking at, in the HUI Abandoned Baby Graphic. We have a “Runaway Gap” on the Left side of a completed Inverted Head & Shoulders formation, so lets see RUNAWAY GAP defined:' (courtesy of Investopedia)

 
A type of gap on a price chart that occurs during strong bull or bear movements characterized by an abrupt change in price and appearing over a range of prices. They are best decribed as gaps caused by an sudden increase/decrease in interest for a stock. (courtesy of Investopedia).

         Now imagine that GAP Upside Down in the LEFT Shoulder of an Inverted Head & Shoulders Formation >? !


                                        Now again, courtesy of Investopedia, we have an INVERSE HEAD & SHOULDERS formation:

GASOLINE FOR THIS FIRE

Now in Martin Armstrong's words:  " the energy of an advance is stored in 
the intensity and measure of its previous decline". Since the April 15 Tax-Day Massacre was orchestrated and fueled with an un-imaginable amount of paper contracts sold pell-mell as fast as could be into a thin market, I should expect that kind of intensity to accompany a corresponding advance.
Thus the measure and intensity of this decline that created this Inverse Head & Shoulders, may well be the measure and intensity of this next leg up, even if things are not perfectly symmetrical.



So where might the igniter be for this next explosive move ?
Well, the explosive mixture of a RUNAWAY GAP + Inverse Head & Shoulders in the HUI awaits the sparks of some unforseeable error on the part of some unknown person. Maybe the guy in Syria who pushed the wrong button did it? We will never know who, or why, but we do know WHAT.




  
 
THAT RED-GREEN GAP STARING YOU RIGHT IN THE FACE


is likely the sparking electrical wire knocked loose by the Quake and Tsunami, that  threatens to ignite the fuel air mixture provided by the Five Month long Inverted Head & Shoulders form so prominent as to not even be seen, hiding in plain sight.


IMO, there will be “Hell to Pay” to the extent that either of the RED-GREEN gaps fail to fill on the GDX, from 31.25 to 32.00 and the HUI from 294 to 301. Should this abyss be jumped over to continue a gap, it would be both classic and historic, IMO, as a demonstration of the power under this Seasonal Summer Rally in Gold, Silver and their equities.


WHAT OUTCOME COULD WE EXPECT ?
Always willing to take a “Gambler's Bet”, that is one with calculated risk and potentially discernable odds, I would wager that at least the first of these projected objectives are reached before end of 2013:
 
NONE means that this MUST come true by any stretch of the imagination, any more than being in a Super-Cell thunderstorm in Tornado Alley means you will have a tornado, but it does mean the necessary conditions are in place..........
    TO SUM UP:
  • Falling Wedge Breakout Accomplished (8/12)
  • BPGDM Sentiment turned Bullish (Jul 17) +50% (Aug 15)
  • Five (5) Mo. Inverted H & S still in place + Runaway LS Gap
  • Resulted in Potential ABANDONED 5+  mo form in both HUI and GDX
  • Multiple Potential Upside Targets in Place
  • DangerZone is 31.25-32 Gap in GDX, 294-301 in HUI. Any Gap of the Right Hand Inverse Head & Shoulders would be set to kick off an explosive rally to the HUI 360-400 region as the first stop

    • Should the RS gap fill, an almost normal rally can happy.

      Those are my observations and conclusions. Observe and do your due diligence.


      OBSERVE THE GAP AT 31.25 – 32.00 !! IF PRICE jumps THIS GAP, I AM EXPECTING
      IT WILL SIGNAL A VERY ROBUST, POSSIBLY RAPID OR EXPLOSIVE ADVANCE.


    .

Monday, August 19, 2013

POWER SURGE - GDM Update 24%->38%->55% Now 55% of the GDM stocks are

In btwn the red & blue circles is the daily dot for 38%.  Quite the feat of power,
but hardly surprising as long as its been out there an coming on.  As you would expect the Conventional Wisdom, counter-intuitive as it is, is calling for caution in the face of this advance.  IMO the power and speed of this advance suggests a Flat Correction in this situation, with a rip-roaring counter attack by the end of the week.  STOPS ARE advised but caution is not, as Caesarian Tactical Ops would suggest being immediately ready to advance.

  Now should we get some reaction, I'd look for HUI 260, GDX 28, GDM 750, and SIL 14 to be the the STOP points.  I use a lot of indexes as this keeps the field open as PAINTING to "Run the Stops", is the tactic used to stampede investors out of good position before the reversal happens.

Now we ask ourselves where could it go from here?  This is my idea of where, since the moment I have been able to dial in an upside target.  Note that coming anywhere near this target, BREAKS the RED Downtrend line, which is good info to have.  If we get near the target, my next expectation would be some sort of break or correction ( May be the Gen'l Market undergoes an '87 like correction), and then another upleg for the PM Complex after a consolidation or regrouping.  Here is that chart:
Again, no rocket science Just observations............

   Next article we can discuss why YOU CANNOT RETIRE ON 1 STOCK  UNLESS
 these conditions are met, and how you might.  I will be providing the complete report Sept 1, with all new subscriptions now thru Oct 1.  Sign up on the SideBar, Walking Liberty's are available until they run out......

  Good Luck ya'll

Thursday, August 15, 2013

One of these silver stocks soars, while one tanks, all $1.00 or less stocks

And you can be darned shure its NOT this one. This is a nice clean chart format I use often.  
      This next one ( Not Silver) is hot but looks a bit toppy:
Get my SPECIAL SILVER STOCK report for $9.99, a sample issue of PEAK PICKS with my compliments, and a $9.99 credit if you decide to subscribe after receiving out SPECIAL SILVER STOCK report.  Good Luck.

Wednesday, August 14, 2013

UNBELIEVABLE ! ! Four $1.00 (or less) Silver Stocks SPECIAL REPORT $9.95.

Observing the rally since June 28, on my radar are FOUR (4) Prospective Silver stocks.  Some are walking wounded, some have real prospects, some might just soar based on what they have in the ground and whom it is they have running them.  Sort them out and take your choice, or not.

Hit the sidebar LINK, FOUR (unknown to most)SILVER STOCKS @U$D 9.95, get your report and sort out the sheep from the goats and profit yourself.  Your $9.95 is also creditable against a subscription to PEAK PICKS, should you like to try it.

Saturday, August 10, 2013

Burnt Bulls, BBQ'd Bears

Taken from the Free Front Page at StockCharts  -> A composite picture of the stocks taking flight on the Toronto Stock Exchange, today, Friday.  Six Gold Miners, four energy stocks.  What or which of them were on your list yesterday?

A number of our subscribers had them on their lists and bought this week because:

THE CORRECTION IN THE SUMMER GOLD & MINER RALLY IS OVER  ! !

Bulls burnt in this last decline, one and two years long are still hesitant to step in, or for that matter even sample the water.  Long about "Top Out Time", many will convince themselves to stop right into the next correction, oh so sad.
  What to do? What to do? Act decisively when you have good Intell, and CAN act on it THEN, RIGHT THEN !!  Stepping up AND OBSERVING your STOPS will keep you in far better shape than WAITING to psyche yourself up to step in.

Notice that the following charts look as if they were doing synchronized swimming:








Nine of 'em, Read 'em and Weep BEARS  !!  We are gonna need a 5 Gallon bucket of Cattleman's Pride BBQ sauce from Costco here pretty quick as I see this fire pit getting heated up fast.  As I called it last week, we see the Correction ending Wed, and taking off to the upside Thurs.  I like it.

Any of the Gold Stocks on the Linked List would be a good place to start.

Some good ones are on Peak Picks Rally Report.  Drop me a line for a couple.

GUESTBOOK