Things Just Got Ugly

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Published : June 24th, 2013
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Category : Market Analysis

Well, well.What a pounding the metals took this week.It's no fun to grasp at hopes and dreams while your assets tumble to the weeds.

I'm not sure if this is a low here yet or not, we've got to see how things act the next few days but Friday was nothing special that would tell me a bottom is in yet.

I noticed some people who were disgruntled at my call for lower prices gravitation back to me this week.Maybe I'm not such a #*@$#%^* #&$*@(& after all!!

As for the markets, we were on top of the reversal Wednesday and had several great short trades that worked out well.

This is a game and you've got to play both sides in my opinion.

Playing the short side at the right time and in the right stocks can make you more money quicker than almost anything else.

All in all it was an amazing week which is nice after the week before where I got beat up a little bit.

I've been bearish the metals all this year.The charts simply told me to be.It's not my fault.You can talk about manipulation and whatnot and it's true, all markets are manipulated to a degree and gold is no exception.

We know this.Therefore we've got to play the game.As I've been saying, I think there will be lots of gold flooding the market when a low is put in.The weak hands/sheeple will be robbed once again.

Learn the game and play it well.That's the goal in any profession or skill isn't it?That is my goal for subscribers and myself.

Let's look at the precious metals charts and see what I am seeing this weekend.


Gold fell 6.92% this past week and saw a near $100 day down Thursday.Quite the show!

I identified the bear flag for subscribers Monday and here for you last weekend before we began the slide.

Some subscribers used a leveraged ETF to short it and the stocks went from the $90 buy point to over $130 in a couple days.Simply amazing and they are having a fantastic weekend to say the least.

There isn't any support anywhere unless you look at a longer-term chart.The monthly chart tells me we've got to hold the $1,245 area.

If that level does not hold then we are in for lots more downside all the way to $1,000.That would be about a 50% haircut from the peak and would echo the same move back in the 80's before gold began its massive quick rise.

I am still bullish long-term but things are ugly now.

I hate to say it, and will get some emails telling me how arrogant I am, but I gave you these levels early on in 2013 so you were well warned.

I really hate being right in this case.I know how painful this has been for so many of you and I do truly sympathize.

If you've ridden it this low, I'd just let it ride but if you took some profits earlier in the year then we may get a buy signal shortly, or we move much lower.

I can't say much except give you these levels and watch the action.

Subscribers will be updated daily on the gold and silver and will know as soon as I see a buy signal.


Silver took a serious beating and fell 9.15% for the week.I've been saying for so long that we needed to get under $20 for any potential of a reversal.

Now we see if we can regain $20.If not then we go back to $15.

A move back above $20 would be one signal to buy but it must happen soon.

I personally think the charts are telling us we have more to go.The capitulation just isn't there yet but if we see another $300 taken off gold and $5 off silver in a hurry that would bring sellers out in masses.


Platinum fell 5.27% this week.Last week I said it broke it's trend-line and was going to $1,375 "unless a miracle occurs".

We went below it and closed right at that level Friday on good volume.A low here does look to be in but only time will tell.

If this is not a bottom, and I think it is, then we go to $1,100.


Palladium fell 7.72% for the week.I talked about the failed breakout a couple weeks ago and then warned last week of the break of the uptrend line.

The plunge was truly amazing and I have to say this was a great call by myself.I only wish they could all work out so well.They don't.

If I told you I was always right I'd expect flack but I readily admit mistakes and losses.They happen to everyone.

Palladium took a $100 haircut from the failed breakout level in only 2 weeks.Amazing and fun to watch for sure.

I do think we've got a low here.Hitting recent support could be setting us up for a double bottom.

While platinum and palladium look like lows are in, if I'm right and gold and silver have more to go on the downside then It's highly likely that the P metals will head lower as well so do keep that in mind if you try and go long them.

Well, I am sorry for calling this move lower and seeing it come to fruition.I really hope you're not too hurt by the move.This is not the place to sell.That is all I can say.

Enjoy your weekend regardless.

Life really is great.Be thankful for everything you do have every day and the money will come.With a little hard work thrown into the mix.

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As for the markets, we were on top of the reversal Wednesday and had several great short trades that worked out well.
Life really is great. Be thankful for everything you do have every day and the money will come. With a little hard work thrown into the mix.

Your gains are somebody else's loss, remember that. Life rarely looks bad when you're winning. The flipside is that somebody else is losing. The PM's gave me a "store of value" much worse than the inflation that it was supposed to hedge against in the first place. As a result everything I worked for is gone or on the way out the door.

But at least you can now get a new Mercedes, head down to the mall and buy some expensive useless items to show off your success, pat yourself on the back for being a winner and go to bed with a tummy full of lobster. Thing is most of us that got burned did so trying to protect what they had worked hard for (actual productive work, mind you ) not to get rich or live the big-life.

The poor of the world are probably more thankful for their meagre share of the wealth than most of the rich. That never made them any richer - in fact they almost always get poorer. Being poor and thankful is just a mild capitulation to the idea that you won't ever be wealthy and an acceptance of that fact. I very much doubt that the wealthy elite of the world think this way. It is not the mindset of greed - quite the opposite.
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"Faithless is he that says farewell when the road darkens." J.R.R. Tolkien
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If this refers to the "yellow brick road" of PM investment then yup, count me out. I will never spend another cent on gold or silver for investment. I will not even glance longingly in their direction should they ever recover. If there is one thing I've learnt its that faith can be a dangerous thing in the world of money - it makes for predictable behaviour, which will always be capitalized on by the "players".

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And how will you relate this to all other forms of investment/wealth storage if you feel this way about what many consider nothing more than a commodity?
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I don't really need to. I don't have any "wealth" to store any more.
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I don't really need to. I don't have any "wealth" to store any more. Read more
dom1971 - 6/26/2013 at 7:10 AM GMT
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