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This is the time
for real action by real men. Instead we have a bunch of stupid, wimpy,
inexperienced, academic children playing with matches and
gasoline. There is zero leadership, so get ready to run.
Technically,
weekly gold is supported at $1,207 and capped at $1,265, (chart below) the
former recent high price. However, by using more elaborate and technical
charts (not shown) we find the new gold support on December, 2010, gold
futures to be $1,175. Seasonally, gold should sell mildly once more to that
projected number and then rebound in a new fall rally taking prices much
higher.
Other more
dominant market forces in bond credit and international stock markets could
create unmeasured mayhem depending upon the ability of central bankers to
keep things under control. These people are riding a bucking bronco and we
think they are about to get tossed-off this horse. If in fact this occurs,
our $1,325-$1,375 gold forecast could just be a door-opening beginning.
There is really
no way to measure Black Swans, particularly when a whole flock is now
flying in large formation. It only takes one slip like the Long Term Capital
(LTC) multi-billions mistake back in the 1990’s. That mess scared the
wits out of a lot of people as the Big Black Nasty Bird was an
unexpected failure in Russian Bonds. This time the stakes are much higher on
several fronts. No one can tell me Chopper Ben and Timmy “The
Kid” Geithner really have a grip on this mess.
This
markets’ dilemma is an impossible dream. The manipulators still have
tools and they will do anything legal or illegal (Witness Former Treasury
Secretary, Hank Paulson’s TARP Robbery) to keep it all glued together
with bubble gum and bailing wire.
As we have said
so many times, when the bond markets renounce Chopper Ben’s bond Games,
it’s all over. In our view, we are very near to that date but of course
cannot pin-point it exactly and neither can anyone else. As they say, this is
when the rubber meets the road. This is the time for real action by real men.
Instead we have a bunch of stupid, wimpy, inexperienced academic children
playing with matches and gasoline. There is zero leadership, so get ready to
run.
Be very careful
in any stock or bond market. We like physical gold and silver, select senior
and junior precious metal shares, very specific property locations (by
nation) and top flight management. Further, they better not be under any
severe pressure to raise more operating capital in this weird credit
environment.
For trading, we
are recommending gold and silver spreads, grain, and certain other futures
and options spreads. For the primary stock market there are several select
choices among more than one country for going short and staying short.
Remember, it can take weeks or months climbing up the hill on the long side.
But, coming down on the short side it’s many times faster and much more
exciting.
To put it
bluntly, we think bonds of all kinds just stink. Can they be traded, you bet.
However, you better be a very fast screen watcher with your hand on the mouse
to avoid getting ripped. We think this kind of trading is for the pros and
there are easier ways to earn money without a heart attack.
Watch out for
faster markets, more volatility and surprises in all directions. One example:
We think the Euro is a goner but China is shedding US Dollars for Euros. Obviously,
they think the Euro is safer than the dollar for now. We think the
opposite is true but the Chinese own way too much US currency, bonds and
bills.
Both gold and
precious metals shares (XAU) are squeezed in triangles. Before price hits the
triangles’ apex, we suggest they both break-out through top channel
line resistance and take-off in new fall rallies from the end of this month
to nearly Thanksgiving. After that holiday, expect even more buying
after a normal, technical, profit-taking pullback.
Note the end of
summer gold rallies just before the “O’s” for October many
years in a row.
What ever happens
to foreign economies, credit and banking along with the American vote in
November… could be a major turning point in world affairs affecting all
citizens world-wide. This is a generational changing series of events. It
might be prolonged but we think not. Prepare for several smashes and crashes
from later in this month of August through nasty springs and falls all
the way to 2012 when I predict World War III begins over energy, economics
and settlement of several old grudges; some of them being 5,000 years old.
The US Dollar and
American standard of living shall be cut in half over the next few
years.
Now, more than
ever, it is important to take the immediate necessary precautions to protect
yourself and your families and friends. Traders and investors should be
buying precious metals and select shares right now. In our newsletter
we have a great list of trading and investing ideas for you. Meanwhile, you
can never go wrong buying physical precious metals and holding them for
security. We’ve had a constant run of nearly ten years in gold rising
15% per year so this remains a good trade. In the last twelve months, gold
rallied over 34% and is going ever faster.
It’s not
going to stop any time soon. In fact, we predict those annual percentages
will rise even more and this offers a chance, arriving only once in 25 years
on the historical cycles. Good trading! -Traderrog
Roger Wiegand
www.webeatthestreet.com
Roger
Wiegand is Editor of Trader
Tracks Newsletter and of
the Rog Blog at www.webeatthestreet.com.
Roger provides recommendations for short and longer term trading using stocks,
futures and commodities with specifics.
Contact Claudio Bassi, at Trader
Track’s New York City publishing offices for a trial subscription. Call 718-457-1426 Monday
through Friday,
9:30am to 5pm or, e-mail cbassi@miningstocks.com
Recommendations
made in “Trader Tracks” are exclusively those of Roger Wiegand
and the publication is also exclusively the editorial content provided by
Roger Wiegand. TAYLOR HARD MONEY ADVISORS, INC. (THMA) LOCATED AT 33-42
61ST STREET, WOODSIDE, N.Y. 11377, ASSISTS IN THE MARKETING OF “TRADER
TRACKS.” However, the views expressed in Trader Tracks do not
necessarily reflect those of THMA (Website: www.miningstocks.com). Because
individual investment objectives vary, this summary of investments should not
be construed as advice to meet the needs of any particular reader or
subscriber. Opinions expressed in Trader Tracks are statements of judgment
expressed at the date and time they were written, and as such, are subject to
change without notice. Roger Wiegand is not a CFA nor an investment advisor,
but a private individual who studies the markets extensively and offers
summary opinions. Before any type of investment is made, you should always
seek advice from your attorney, CPA, registered broker, or financial advisor.
There is considerable risk in market speculation and investing. There are no
guarantees regarding performance and past performance provides no guarantee
of future performance. Your trading accounts are always subject to the
potential for severe or total losses. This service will involve SPECIAL
EMAIL ALERT TRADING RECOMMENDATIONS PROVIDED AT ANY TIME Roger Wiegand
believes it is opportune to trade either in or out of the market in question.
AS SUCH, THIS SERVICE WILL BE CONSIDERED A PREMIUM SERVICE. The
management of THMA, Inc. does not anticipate trading in the securities
recommended in Trader Tracks. No statement or expression of any opinion
expressed herein constitutes an offer to buy or sell the securities mentioned
herein. Trading futures contracts may not be suitable for all investors. You
may lose a substantial amount of money in a very short period of time. The
amount you may lose is potentially unlimited and can exceed the amount you
originally deposit with your broker. This is because trading futures is
highly leveraged, with a relatively small amount of money used to establish a
position in assets having a much greater value. If you are uncomfortable with
this level of risk, you should not trade futures contracts. If you need a
broker, contact mine, Ryan Olson, Managing Partner, Jackson-Olson commodities
at 800-352-5228 or by e-mail rolson@jacksonolson.com Contact Jackson-Olson
Commodities, LLC, 5510 Abrams Road, Suite# 101, Dallas, Texas 75214. Local
Telephone is 214-691-8600. Fax is 214-691-8614. Jackson-Olson clears trades
through R. J. O’Brien founded 1914. They provide clearing and execution
services in virtually all markets around the globe. To subscribe to Trader
Tracks stocks & bonds, futures & commodities, contact Claudio Bassi
with e-mail CBASSI@MININGSTOCKS.COM
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