- I believe that some college kids were called
"preppies", and some probably still are. I want you to get a
little "preppy" about the gold and gold-related markets.
up in the fetal position and cursing banks and the government for not
sending gold stocks and silver to the stratosphere is not going to help
make you any richer, and it may harm you emotionally as well.
is a time to stare intently into the quote machine. That time is when
gold is soaring day after day, as it did into $1900. You sell a little
into powerful strength, and party a lot.
each time gold or the items related to gold begin to make such moves to
the upside, I get emails explaining why price
needs to be chased, "before it really gets away".
all feel that same feeling. The question is whether such feelings should
be bought, sold, or ignored. My response is always that the investor
should commit the amount of market sin required to kill the emotional
urge at hand.
analysts continue to get flooded with emails now, asking, "when will the gold juniors finally start
rising, what is the gold bullion price that is required to make it
is no answer, and the question itself is financially flawed
and financially dangerous to the investor who is asking the
question, but few care. Like a child lost in a dark forest, they don't
stay where they are. They continue screaming into the dark,
"where I am, somebody help me!".That action only makes the
situation drastically worse.
investors are unconsciously demanding that all liquidity flows in the
greatest debt crisis in the history of the world be immediately
re-directed at gold juniors. That's not going to be happening. Facts
like the continued bull market in bonds are totally ignored by team
"gimme the parabola, and gimme it now!" The bottom line for gold stock
investors is that you are in a gulag and the only road to victory is endurance.
can ask your captors when you are getting out until you are blue in the
face, but that won't help, because your captors, the leveraged hedge
funds who are short your stocks, have no intention whatsoever of
releasing you, let alone giving you a timeline for victory. The last
thing on their minds is you beating them. To think otherwise is complete
survivors of real gulags did whatever it took to survive. Mental games
are one big key to making it out alive. Gold stock investors need
different themes of the day to manage the dreariness of time.
now, you are in what is supposedly the "seasonally strong"
period for gold and gold stocks, yet the juniors, which rose 100-400% last year in many cases, can't seem to
get anything going. Friday seemed promising, and then yesterday
the hedge funds seem to throw everyone back into the hot box yesterday.
the gold stocks are crashing hard, and you personally feel like
liquidating, the "tactic in play" must be to get away from the
machine or person that enables you to liquidate, and stay away.
plain English, liquidation of your gold stocks is booked failure.
That's a horrific action, particularly if it comes after years in the
gulag of time. Look into your market mirror. Do you see a person
enveloped with urges to engage in booked failure? No. There is simply a
decent level of frustration and emotional dejection. The key in this
case is to "get preppy".
I talked about the need to keep different assets in different accounts.
Do you have rooms in your house, or do you hire a bulldozer and jam it
all in one room. "One account for everything!" - Joe Golf Ball
Advisor, Sep 20, 2011. That is a very dangerous approach to your
everything is jammed in a single financial room, if 7 investments are
down and 3 are up, you still feel like crap, because you devolve into a
dejected ball of melted jello, blubbering,
"It's all going down, what does it matter
if 3 are up!" Yes, but it was that same lack of attention to
detail that you paid to your accounts when you bought that caused
the current situation.
isolating gold juniors from your other investments you build a wall
around your other investments, so you are less likely to
"steal" risk capital from them, to buy juniors during a hot
streak in the juniors sector.
you can't destroy the feelings of greed in a hot streak, you can work
professionally to prevent yourself from engaging in crazed movements of
risk capital when it happens. Isolating your investments from each other
should be the first order of business for all investors when you enter
the investment arena.
"get preppy" with gold, right here, right now. Click here now to view gold in the $1700-$1900
trading range box. Yesterday I highlighted the breakout above the thick
green downtrend line as, "a positive event but not a buy signal".
gold price declined back into the tiny down channel, and that's when you
should have "gone preppy". Walk away from the trading screen.
Do something else when price is moving against you. Get some fresh air,
come back, and look for your next positive event. If you stare into the
quote machine waiting for the juniors rise, you risk liquidating just
before it happens.
here now to view this morning's first
"gold positive" event. The gold price pulled back to the black
HSR (horizontal support/resistance) line. From here, I expect price to
bounce. It's not a grand turn call, but something to keep me positive, a
mental game to keep me emotionally strong.
click here now to view the outcome of that little
mental game. The gold price bounces, and I'm happy as a clam. Mission
accomplished, while other analysts and investors are screaming at the
hedge funds, "make my juniors rise now, stop shorting now!"
Instead of liquidating so your juniors go vertical, the hedge fund
managers hold a laughing contest, paid for by you. Get out of
that mindset before you destroy yourself.
here now to watch the Dow rip apart team shorty pants. I don't see any benefit to
buying the Dow, which is rising on the (mistaken) view of institutional
money managers that rising oil prices indicate an improving economy.
Even they admit that if oil went above $150 it could be a nightmare
the same time, the Dow "short-a-holics"
are trying to short companies like McDonalds, Wal-Mart, Exxon, Home
Depot, and Chevron off the board with their crazed "get the Dow,
and get it now!" play.
is the era of gold. Oil is likely to follow gold much higher, as will
all commodities, over a long period of time. Buy gold stocks, buy oil
stocks, hold your ground and do what it takes to stay in the
"preppy zone". Leave the Dow alone. Just walk away from the
situation, whether you think it should be shorted or bought. The crisis
has barely started, and will likely run for decades. Gold remains your
ticket to wealth, and you need to be careful about just how much bullion
you offload to get on the gold stocks greed train, because there are big
legs to this crisis that have yet to unfold!
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