Monday, October 06, 2003
Repair Time
Author: Jim Sinclair
I refuse to buy into Cartel PR. Gold is going higher and the dollar lower. Once technical damage is done, it must be repaired because this nutty market trades on lines and squiggles. However, repair will be done and gold will go higher.
This is the beauty of not over positioning or using borrowed funds. When there is no margin person looking over your shoulder, you have the great privilege of playing with your dog or going for a walk.
I don’t believe in hedging my feelings and ask you to consider the following:
It is total bull that Friday’s bust in gold had anything to do with government intervention. Who ever says that is writing fiction not fact!
Gold busted Friday because the gold advisors had ploughed the way for a decline and the Gold Cartel took magnificent and professional advantage of that. When a bunch of raving dummies entered large stop market sell orders in Comex gold futures from $379.00 to $381.50, those stop orders functioned as an invitation for an execution the gold dummies will never forget.
Gold stockholders who owned fully paid shares and threw them into the market at the market price should be institutionalized if there’s any place that will take them.
That is the entire story so forget the novelized version of the US government via the ESF offering for sale 20,000 contracts on Friday. That is total fiction. That is just what the Cartel wants you to believe and it is golden horse manure. Sure the writer believes his sources but his source is a fruit cake.
Gold will flop around for awhile while the bearish Cartel continues to sell to the Gold Community via its “Advisors” who are clearly but unintentionally agents of Cartel interests.
Disinformation as a Combat Tool
Stay focused on the fundamentals as the technicals repair themselves. Don’t fall for the planted story of 20,000 contracts sold by the government on the Comex Friday. Friday was the Cartel taking professional advantage of the Gold Community when its flanks were exposed in the form of those dumb stop loss orders.
When the bullish gold line collapsed at the center and the flanks were in full retreat, the pros of the Cartel simply hammered the hell out of the few Comex gold bids left until a large buyer stepped in and said enough was enough.
God bless the buyer who stood in front of that nonsense and said STOP! One thing you can bet with confidence and that is that the buyer was NOT anyone calling himself/herself a gold advisor for hire.
Conclusion:
Be Careful of the following Cartel-inspired gold advisor comments unintentionally coming down the line.
The 8 week gold cycle, which was invented at a gold trader’s desk at the Cartel.
The seasonality of gold, which is indestructible and not a consumable in the traditional sense with predicable buying.
Rumors of Central Bank gold sales.
Rumours concerning large US government offering of Comex gold contracts.
Technical damage was done on Friday but it will be repaired. That takes some time so just cool down and be prepared. Draw your Power Down Trends, be patient, and with the use of your internal indicators be ready to act or simply enjoy the march back to $400. |
