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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: gold$10k who wrote (45202)

6/29/2013 2:40:26 PM

From: John Pitera

2 Recommendations

Recommended By
Anchan
prometheus1976

Read Replies (1) | Respond to of 48092

Hi Gold10K, you could easily be right...after all we are talking about Gold topping out over 2 years ago and at 1923$ an ounce and we were down all the way to $1180... everyone is insanely bearish..... and we have room for a huge short squeeze.... I get feed lots of good info... Dr. John Najarian was commenting how he was going long the AGQ which is the Silver pro shares.. thursday's fast money and sometimes I here things and they ring true.... Silver leads gold and I did post a chart a 5 year monthly silver chart back when it was at 21 saying I was looking for an ultimate target of 17.50 to 18 and we got 18.06 and then a big reversal on Friday... the gold miners and HUI also leads the physical metal and I posted a 20 year weekly chart that shows that we have come back to the Major uptrend line and are more oversold than at any time in the past 20 years. Most of my work is tilted toward those who are larger position traders who have to scale out of shorts on the way down and scale into longs before we reach the turn...... I had already been doing stock trading commodity futures , options and currencies. with a company called Richardson Mann in the American Express building in Sydney... after having traded at school in Texas,,,

I was very much into technicals , Elliott, Gann, Price divergences, sentiment and moving average cross overs etc.... I was fortunate to land a job on the bond desk at citibank... and I was young and tech savvy enough that I brougt in live time charting software and live price feeds... I was the only one in a dealing room of almost 100 people who had this.... I'm talking 1986-87...... I ended up running a profit center and also becoming the chief market technician.... and because we had such a sophisticated swaps team and very large book.... a very large forward FX team..... an excellent floating rate note desk.... funding... and others.. we were so big in the Sydney bank bill futures market that on many days half of the total volume was from our firm.... and the different desks where using them 75% of the time as an arbitrage hedge... but I did find that I had to think about what was coming down the road.... and start to get people geared up to change from bull to bear in the late stages of the price move..... that has kind of carried on.....

I normally don't look at the interday and real short term stuff....but right now... is right up there with anything I have ever seen or read about...

also AJ posted this on my market Lab last night and it is falling into place...

From: ajtj99	6/28/2013 10:33:36 AM
	2 Recommendations Read Replies (2) of 14245

The XAU weekly has made or is close to making a low, IMO. The current trading box appears to extend from the 80 area to the 110 area. The risk/reward

The HUI from June 11th and now the one from today

I use elliott but I look at the global currencies and global yield curves and the interest rate differentials as the drivers of all other asset classes, also several spreads between the high and lower grade corporate and muni rates, the spread between treasuries and CDS index... and what is going on over seas..... If you look at the weekly chart of the HUI we have a Gap Island reversal possible with a Friday close on the high of the week.... very very rare..... I can name 25 different things... and I actually have scattered all over SI... but much of it is on My Market Lab.... The Mortgage Market is shutting down the real estate run up.....

The bottom line is that the asset classes are inter related and I see a turn or as AJ said ... we are darn close....... he is correct about a 7 to 1 risk reward ratio...anyone who is still hanging around short these 2 metals needs to read through the Market Wizard books about 5 times and wait 5 months between each reading....

John..