- If you analyze the market, you
are usually trying to identify the next market trend, so that investors
can place buy or sell orders. The reason for placing these orders is to
book a profit or a loss.
- When it comes to the gold
market, I'm not sure that analysis is the best tool to maximize profits
and emotional stability in this super-crisis. In a super-crisis,
destruction is a major theme.
- If you view the gold price grid
as a battlefield, and view gold bullion as the "Queen"
of your forces, I think you will fare better. Rather than looking at a
gold bull market and a dollar bear market, view this crisis as a
financial war where you are a predator. You exist solely to take what
your opponent has.
- Look at this crisis as a war
between a "gold bullion punisher" and a "dollar
- Most of the gold community is
heavily invested in gold stocks, and the key HSR (horizontal support
& resistance) levels on the monthly chart of the $HUI gold bugs
index are your main buying zones.
- Gold-based wealth is built as
you accumulate, not as you liquidate. Please click
here now. For 95% of the gold community, I believe this is the most
important chart in the world.
- These HSR zones are price areas
where "queen gold" orders her armed forces to engage
the dollar bug enemy in enormous financial battle.
- The GDX-nyse
ETF is based on the $HUI index, but it hasn't been in existence as long
as the $HUI has, so you need to use the $HUI chart too.
- Use these monthly chart HSR
zones as your "personal aircraft carriers" in the war
against the dollar bugs.
- I'd like you to make careful
note of each HSR zone. In 2008, the first major point of gold stock
accumulation occurred at a price of 258.60. I've highlighted that key
HSR zone in orange colour.
- The 2nd point of gold stock
accumulation in 2008 was ushered in when price arrived at the black HSR
line at 154.99. You can either buy at these HSR lines, or buy into them,
preferably with increasing size, as price drops.
- Where are we now? Well, the $HUI
traded yesterday at a low of 422.92. The $HUI is rapidly approaching an enormous
gold stock accumulation zone, defined by the purple HSR line at
- While most analysts are trying
to figure where price might be going to, I'd prefer you to think like a
soldier, and focus on "opening fire" on your opponent
in the price area surrounding these key HSR lines.
- Like it or not, the time is now,
to open fire. Business owners in the gold community with enormous
cash flows but weak emotions need to stop hesitating and start fighting.
Re-buy what you bailed on and increase your buying. Fight back
against the dollar bugs.
- I don't think that anything Ben
Bernanke says at the FOMC meeting will be enough to stop the enormous
battle that has begun as we approach $HUI 401.69. You don't need QE. You
need to buy into 401.69. Do it by buying GDX, GDXJ, and your favourite individual gold stocks.
- I was a heavy buyer of GDX
yesterday, and if the $HUI gets closer to 401.69,
I'll be an even heavier buyer.
- The gold community can win this
fight. Many investors have endured 70-90% drawdowns in 2008. Use that
pain to get angry. You're in a military fight, not an analysis contest.
Direct your rage into pressing the buy button on your computer.
- What happens if the $HUI falls
all the way down to the orange HSR battle zone at 258.60? Well, the
answer is that you engage the enemy and take their stock.
- If you have never been a robbery
victim, you are likely to become somewhat irrational if you are
approached by robbers, and I think that is a very similar feeling to
what gold investors are experiencing now.
- Ironically, at precisely the
point where gold stocks are mostly likely to stop falling and start
rising, investors are becoming convinced that they can only fall.
- Once you jettison the flip
trading mentality and embrace the much bigger HSR zones in play on the
monthly charts, you are set to regain a lot of "market sanity".
Let's take a close-up look at the gold bullion chart. The weekly chart
can help to closely illuminate the big monthly chart HSR zones that are
currently in play.
- Please click
here now. For the gold community, the 2nd most important chart in
the world is probably the monthly gold chart with the major HSR lines
highlighted. This is the weekly chart, and it gives you a bird's-eye
view of the key HSR zones.
- I don't think it matters that
the two declines from $1923.70 bottomed at $1535 and $1523.90. What
matters is that they entered the key HSR zone at $1577.40, and you need
to be an accumulator in the area around $1577.40. Note the orange HSR
line at $1424.30. Guessing about whether the gold price goes to $1424.30
is a complete waste of time, in my professional opinion. I don't think
we go down there, but if we do you need to understand that the soldiers
in "queen gold's army" will be there, and they will engage the
dollar bugs in serious battle. You need to be prepared to engage there
- I'm 90% sure that GDX and your
individual gold stocks will be propelled higher by current HSR in the
gold bullion $1577.40 and $HUI 401.69 price zones. More importantly, I'm
90% sure that most of the gold community is tired of analyzing and ready
to start fighting. So, let's do it! I'll see you out there, buying
stock, on the major HSR gridlines!
For Website Readers: Please send
me an Email to email@example.com
and I'll send you my free "GDXJ monster buys!" report, where I
correlate the key $HUI support at 401.69 with specific price points on the
GDXJ chart! I'll also include a horrifying report on how the internet search
engines are morphing into internet direction engines!