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$HUI 401.69 Aircraft Carrier Update
Published : April 25th, 2012
1024 words - Reading time : 2 - 4 minutes
( 1 vote, 5/5 ) Print article
 
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  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. Look at this crisis as a war between a "gold bullion punisher" and a "dollar bug" enemy.

 

  1. 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.

 

  1. 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.

 

  1. These HSR zones are price areas where "queen gold" orders her armed forces to engage the dollar bug enemy in enormous financial battle.

 

  1. 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.

 

  1. Use these monthly chart HSR zones as your "personal aircraft carriers" in the war against the dollar bugs.

 

  1. 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.

 

  1. 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.

 

  1. 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 401.69.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. I was a heavy buyer of GDX yesterday, and if the $HUI gets closer to 401.69, I'll be an even heavier buyer.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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 too.

 

  1. 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!

 

Special Offer For Website Readers: Please send me an Email to freereports4@gracelandupdates.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!

 

Thanks!
Cheers
St

 

 

 

 

 

 

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Stewart Thomson

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form, giving clarity of each point and saving valuable reading time.
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