1. You have just watched the “gold punisher” administer an incredible eleven-day beating on the US dollar. From about $1478 to $1610, gold has now risen 11 days in a row.
2. Click this gold chart link now to view the beating, and to view the four buy points you need to be prepared to respond to, if price declines to those areas. In particular, the approx. prices of $1595, $1578, $1560, and $1535 are where you need to be prepared to buy “enhanced” amounts of gold, with US dollars.
3. Use horizontal support to decide when to buy, and all other technical analysis to tweak how much you buy. If you try to use oscillators like RSI & MACD to decide when to buy, you will be financially destroyed over time.
4. Will today be a twelfth up day in a row for gold? I can’t answer that question, but I will say that investors who have tried to “flip trade” their way through this crisis have generally turned their trading accounts into hamburger meat. There will be many more such beatings delivered to the dollar by the gold punisher, yet the mass obsession with calling intermediate rallies in the dollar just won’t die.
5. Those who sold their gold and gold stocks because of coming “seasonal doldrums” now look totally ridiculous. Can you imagine somebody telling you how they tried to trade the long side of the Dow through the crisis of 1929? In this even larger dollar crisis, if you buy the dollar against gold in size repeatedly, you stand to be financially exterminated. It’s only a matter of time before it really happens. What does it take for the amateur investor to really learn? Obviously, the answer is… more pain.
6. Speaking of pain, those of you who have endured the gold stocks gulag are starting to see some sunlight! As most of you know, I began adding gold stocks to my anti-dollar weapons stockpile into the 2008 crash, and stepped that up again in the fall of 2009, as the ETF known as GDXJ (gold juniors) was born.
7. My 2008 buy program almost broke me emotionally, but it was “no cigar” on that front for Mr. US Dollar, and now he is the one who is broken! Most investors thought they could make big money in gold stocks, then trade that for the safety of bullion. That was a mistake.
8. Never go for reward before managing risk. Start by managing the lowest risk investments first, and then use profits from those lower risk plays to fund higher risk equity speculations.
9. Click here now to view why I am “amping up” my gold stocks allocation on all price weakness. I believe gold stocks (via GDX) have completed an imperfect head and shoulders bull continuation pattern, and the stocks are now consolidating just above the neckline of that price pattern.
10. What seems to be generally ignored by investors is the depth of this pattern. It is about $40 deep. The pattern engulfs the entire $15 to $55 price area! While the technical target is slightly below $100, I have labelled the target as $100 because that is a significant round number.
11. I believe that price will surge far above $100, but even at that level some individual junior stocks could go “stratospheric”. A substantially higher gold price could send GDX much higher than anyone anticipates. The bottom line is that the gold stock prisoners (you) are about to break out of the gulag and lay one serious beating on the dollar bugs!
12. A move above $64 on GDX could cause the banksters to order the hedge funds to reduce their crazed short positions on gold stocks, or face forced liquidation, and that action could send gold stocks upwards with near-vertical price action. No market moves more violently to the upside than gold stocks fuelled by loss-booking on short positions!

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