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Post Fed meeting the markets continue higher… and another potential gold run gets hit

December 18, 2014

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Discussion
106 Comments
    Dec 18, 2014 18:13 AM

    Gary,

    Thanks for the commentary! Regarding grains, I believe Bird and matt follow it pretty good.

    By the way anyone in here buy quinoa or there any way of getting exposure to it? It has to be one of the biggest percentage movers of the last few years. I went from buying it at 7.99 to currently 16.99 a small bag.

      Dec 18, 2014 18:17 AM

      Quinoa…..never heard of it until now. I looked it up though and it sounds really interesting. I might just ask around and see if I can find some since I am really curious to taste it.

        Dec 18, 2014 18:03 PM

        Bird,

        Did not know about it until it went viral. Apparently it’s classified as a power food full of nutrition. All the health experts rave about it. Made in peru the locals can’t seem to get any as it is very expensive for them..

        Let me know bird if there is a way to play it. Im going to check myself.

        Dec 18, 2014 18:07 PM

        Bird,

        My wife keeps feeding it to me and I keep asking her if I look like a bird :).

        Taste kinda blah but she is creative with it. Put in on salads,pita sandwich etc etc.

          Dec 18, 2014 18:27 PM

          Odds are pretty good that they are trying to grow it over here if it is really as nutritious as the literature says. There is a push on to get wider acceptance of Sweet potatoes here because they are such a great food. Especially the newer varieties. It might take some digging to find though because I suspect that if they do grow it the grain would only be used as an additive. People here are not easily persuaded to try new foods no matter how good you say it is. I spent two years prodding my wife to try a piece of cheese before she would even taste a small sliver. To her it looked and smelled like a failed food project. It is not a cultural food. And I kept thinking, who the hell won’t eat Cheddar!…..anyway….she got hooked in the end. Now she makes it for me! 🙂

            Dec 18, 2014 18:11 PM

            I assume that you married a local girl, Bird.

            Dec 19, 2014 19:45 AM

            Yes Al. Best thing that ever happened to me. She is amazing.

            GH
            Dec 19, 2014 19:40 PM

            Quinoa grows in the high Andes–roughly 4000 meters…Maybe to Tibet? Mongolia? Montana?

            Coca, apparently, has been tried in the Himalayas and the Alps. Grows fine, but lacks ‘active ingredients’.

    Dec 18, 2014 18:14 AM

    Thanks Gary, IMHO today is a bull trap in the bear TLS selling. I like energy and PMs AFTER the TLS is over. I think oil will recover but resume its drop into the $40s. Why? Cynically, because these oil price drops have never been this easy to overcome.

      Dec 18, 2014 18:16 AM

      Stupid me… I missed my dental appointment this morning because I was at my computer watching the gyrations. (;-)

        Just call DOC……he will pull any teeth for free……………………………

          this is part of the free services….provided as being part of KER family of friends…………

          Dec 18, 2014 18:28 AM

          lol good one j

          Dec 18, 2014 18:33 AM

          I’ll take some of his RIC shares instead. (;-)

            now you are going to lose some of your teeth…………..best way to visit a dentist………………….KEEP YOU MOUTH SHUT………………………..J

          Dec 18, 2014 18:12 PM

          He won’t but I will.

        Dec 18, 2014 18:28 AM

        Spooky – same thing happened to me last Friday.

        There shoud be a warning on this site about possible tooth decay.

          more work being provided for the toothfairy………….

          Dec 18, 2014 18:31 AM

          Haha, I couldn’t figure out who would be calling me at 8am. Got a new appointment at 11 so I will have to pry myself away.

          Dec 18, 2014 18:19 AM

          A lot of people bite their tongues here! Al does it almost daily 🙂

            Dec 18, 2014 18:13 PM

            Take out the word almost!

    Dec 18, 2014 18:16 AM

    Gary what is your current position in gold? Your still long and hedged?

      Dec 18, 2014 18:20 AM

      I sold all metal positions. I’m now focusing on the stock market as it has just printed a daily cycle low and probably ready for the move to Nasdaq 5100 over the next couple of months.

        thanks Gary……….for the update…………………………………j…………..ootb

        Dec 18, 2014 18:28 AM

        Gary, this is very clear. Let us know when you come back in.

          three days notice required…….excluding weekends and holidayssssssssssss

          Dec 18, 2014 18:56 AM

          I’m probably going to shelve the metals until they make a higher intermediate high. It’s just too hard to fight with the banksters in this market. They can whipsaw the market where ever they want it to go. And they have nothing against manufacturing a rally to sucker longs in and then take their money away time after time.

    Dec 18, 2014 18:27 AM

    Thanks for the updates gary.

      Dec 27, 2014 27:30 AM

      You get a lot of respect from me for writing these helpful arctslei.

    Dec 18, 2014 18:30 AM

    Thanks Gary – you could not have said it in plainer English.

    bj
    Dec 18, 2014 18:33 AM

    Oil couldn’t get above $30/barrel before Bush blew up Iraq. Now Iraq; now that oil is back on the market, and the global economy is going to sleep.

    BTW
    New York just outlawed fracking; guess their worried about their ground water and the ground tremors .

      bj
      Dec 18, 2014 18:34 AM

      Might add too the cars are getting higher and higher miles per gallon.

      the governor …….has placed a SHORT in and making sure he is covered……..

        IS THE governor of NY…….a GOLDMAN GUY………………?

        bj
        Dec 18, 2014 18:41 AM

        If true, interesting piece to the puzzle.
        Funny how insider trading laws do not necessarily apply to those in elected office, and their staff–especially at the federal level .\where the $ numbers are the biggest

    Dec 18, 2014 18:43 AM

    Anyone notice that GDXJ fell just enough to precisely fill todays gap (and fill a bid of mine for more calls 🙂 )? I was a seller just a little earlier.
    I’ve had good luck today/this week.

      I STILL think , you need to ask theOWL……..for a spot in the newsletter…………j.

      Dec 18, 2014 18:55 AM

      Something strange happened, now it’s showing that the gap was not filled. Weird.
      ???

      Dec 18, 2014 18:32 AM

      How much matt? how much? lol

      Just kidding…

        Dec 18, 2014 18:40 PM

        It’s been a great week and I like what I am seeing. In addition to the options, I also bought some shares and a bunch of warrants into all weakness.

        Dec 18, 2014 18:40 PM

        What turned you neutral, btw?

          Dec 18, 2014 18:04 PM

          The whipsaw action is not for the faint. So yes you can classify me in that category.

          Long term I have my stocks in place. My short term portfolio is something I got into not to long ago. So im not a day trader by trade lets say. Not to your level at all. Where I thrive is longer term and that’s where my bread and butter is. I had a good year trading this year but I don’t think i’ve traded more them 30x in the whole year.

          Im quite happy to be on the sidelines with my trading portfolio as that is the money for living expenses/bills/fun/pleasure etc etc etc.

          Im hoping for one last drop so I can unload 25% of the long term left I have roughly. Id love to get more shares cheaper and I will be patient enough till after the new years if needed. I know at some point we will either from 1280,current position or 350. Whatever comes first lol.

            Dec 18, 2014 18:22 PM

            I see. Thanks.

    Dec 18, 2014 18:47 AM

    THEY (The Cartel) TOTALLY MANIPULATED THE PRICE OF GOLD THIS MORNING, and that’s a shame……….they have an OIL DEAL with Cuba and the CROOKS still took down the price of gold, this country is in trouble…………FACE IT !!!!!!!

    Dec 18, 2014 18:53 AM

    I am long a equity fund that i plan to sell just after xmas. I am up 2%. Typical Xmas rally. Obama bad negotiator with russia and cuba. Where are the new fresh faces in politics?? Clinton Bush seems very dull and sad . best of health and wealth to all S

    Dec 18, 2014 18:10 AM

    Look at the daily spread on the price of Canadian Energy Services. I don’t own any, just an example.

    http://stockcharts.com/h-sc/ui?s=CEU.TO

      Dec 18, 2014 18:36 AM

      EPC and drillers will be particularly hard hit next year. I will not be supprised that they will come down 90% fromt the high. I am not buying them yet. They usually lag in a big way. I remember my Precision drilling shares came down from $28 to $2 a lot during 2008-2010 and I finally sold them at $9 ish. I made money because I added at $3. It is the largest driller in Canada.

    Dec 18, 2014 18:23 AM

    Argonaut Gold has a short position of over 9% as of Nov 30th. I don’t own any.

    http://stockcharts.com/h-sc/ui?s=ar.to

    Dec 18, 2014 18:32 AM

    Cameco seems to be holding its daily gains.

    http://stockcharts.com/h-sc/ui?s=CCO.TO

      Dec 18, 2014 18:38 AM

      I like it. It has properties with grade hundreds times better than the rest. They can make money at this U price. They are also increasing dividend. It pays to wait. Buy.

    Dec 18, 2014 18:35 AM

    Putin say’s Wall Street is trying to train The Russian Bear to ride a bicycle in Central Park, that sounds like something PT Barnum would dream up.

      Dec 18, 2014 18:42 AM

      Russian is to be bailed out by BRICS fund. It has a large pool of US dollar reserve. China cannot afford to watch Russia fall because it is very dangerous to China’s security since Russia is a nuclear power and US will be able to focus on China after Russia falls. China and Russia are natural enemies but they are pushed to form an alliance. Obama has done the impossible.

        Dec 18, 2014 18:48 AM

        As Chinese I has resentment against Russia since China lost a lot of territory due to Russia influence. Supprising thing is that China and Russia never had a real war after late 1600s. Russia stole land and backed Outer Mongolia independence all at the time China was fighting the Western alliance.

          Dec 18, 2014 18:51 AM

          Lawrence,The Chinese elephant never forgets.

            I think they call that without……… forgiveness

            Dec 18, 2014 18:01 AM

            Well, when you look at the history it is a bitter pill to swollow. A country with 4 thousand years of recorded history and once called Khan of the Khans was on the brink during the last centry. Luckily it is back now. However, Chinese people are still stuck in the inferiority mindset and I am not sure when the general public in China will realize that they have a responsibility to lead. Everything people want now is money, money and more money. Unfortunately.

      Dec 18, 2014 18:18 PM

      He had a lot of interesting other things to say, Machine Gun!

    Dec 18, 2014 18:05 AM
    Dec 18, 2014 18:35 AM

    Im sitting here by the fireplace, having a pint on the sidelines with my trading portfolio, and running out of wood waiting for the so called “Big drop” to happen and nothing. You know there was a time wood was cheap but my golly..

    Bears? what’s going on?

    Im neutral

      Dec 18, 2014 18:25 PM

      Last week everyone was afraid to buy. They had to give the “All Clear Signal” to get some buyers back in the market. (That is of course, raising prices). Funny, I see all of the ads for Christmas from Macy’s and the big boxes in which they lower their prices to get people to buy their goods. Hmm? Must be bizarro world.

        Dec 18, 2014 18:32 PM

        Good one Richard. That is a pretty interesting observation and so true that consumers are lured by falling prices yet that is exactly what will scare the hell out of most investors.

          Dec 18, 2014 18:40 PM

          Thanks Bird, I just try to look for price and value, even though that is difficult in this market which no longer rewards for value.

            Dec 18, 2014 18:56 PM

            It is kind of funny actually. You ever talk to novices about investing? And they say the craziest things that most here would reject outright where on the other hand when you try to explain how the market works they just glaze over or try to change the subject. I have to wonder if its not the consumer oriented programming that creates the mental blocks in how pricing works. I had a dizzying conversation with a guy yesterday about oil prices and fuel. He had seen the news about how steep the falls were but could simply not understand the differences between futures prices and inventory in the pumps. A big circular conversation followed and I began telling him a little about contracts and how long it would take before even some of the discount would materialized at the retail level. But I lost him. Guess I am not good at explaining. And he just kept insisting that he was getting ripped off buying gas when he KNEW that prices have already fallen down.

        Dec 18, 2014 18:10 PM

        Richard I need your observation as well as matthew and others on what you see from a charts point of view with iamgold. It has been acting very strangely.

        Recent rumors have ceo unloading over 3.5 out of the 5 million shares since 2010.. Could be banking in profits with intention of buying lower. His most recent sales were two weeks ago.

        Could the be a buyout? either way. It is acting like it want to explode higher or someone may be holding the bag soon.

        Would greatly appreciate your thoughts.

          Dec 18, 2014 18:40 PM

          Glen,

          I’m not speaking to any chart analysis but I agree with you that Iamgold is a fine company if owned during the right cycle, preferably during a raging bull market. Over the long-term IAG should do well and inline with other similar gold producers in its category.

          But with the dollar very likely continuing to gain strength further into 2015 coupled with a very possible final whipsaw washout drop of gold to the $1,000 and even the $900 range you will probably be able to buy IAG in the future at an extreme low of a $1.50 to $1.00 or so.

          You can go right on down the line and add any number of additional well known producers and explorers to that category of unbelievable low bid/ask prices never thought possible. Not necessarily to the $1.00 dollar range, but if we get the market decay that I think could happen in the future a $10 dollar gold or silver stock today could easily drop to the $5.00 – $3.00 range under the right take down scenario combined with the general psychosis of the sector that continually fights an uphill battle against hedge fund algo’s and gov intervention.

          Don’t think it can’t happen………..just stick around because your going to see things unfold no thinking human ever thought they would see in their life times.

          I keep trying to tell folks that that none of these risky high beta PM stocks are going to run away from you. You can and should be very selective and show patience. If you can get an insanely lucky low priced stink bid to fill on a quality stock then by all means, but don’t chase them. Let them come to you.

          V

            Dec 18, 2014 18:01 PM

            This is one of the best post of the year! It deserves to be put on every investors wall and i mean that with all honesty. It summarizes one word that I always preach in here. Patience! The issue im having is patience is running low. This sector has been beaten to a pulp and left to rot and now we see some light shine upon us and it feels good for moment until they pull the rug out from under us.

            The only problem that I have now is the fact that some miners hit there all time lows intraday at least for a brief moment and escaped us. They have not returned. Iamgold was able to hit 1.50 and has not gone down again. You put up a graph and you clearly see that it dates back to prehistoric times. Now you run the gamble that if you wait she may never come back “IF” the bull has returned. And “if” you go in you may become sardines for the sharks.

            The one thing I know is no one really has a crystal ball although I’ve always maintained that powers beyond our control have an idea of were gold is going.
            The best we can do is enter good entry points like you said and sell in a few years.

            cheers and good talking vortex

            Dec 18, 2014 18:39 PM

            Glen, thanks a million,

            Your reply was filled with tons of good solid commonsense and well grounded. I know some of the folks here are going to take my position out of context and want to turn it into a tit for tat argument to prove this or that. Don’t waste your time.

            I just think its OK for the little guy/gal who are simply trying his or her best to navigate this trail of ticking time-bombs and black swans of insolvency everywhere should fell the latitude to give yourself permission from time to time to take a step back and gauge market sentiment, trend analysis as well as price and volume action, specifically in the PM stocks. As you know there are 20 to 30 other indicators we could be talking about as well but you get my drift.

            As we all look out over this horizon of market insanity and illogical targeted discombobulated actions in every market conceivable we have to find the strength to step aside from time to time and preserve vital funds until superb odds are tilted in our favor.

            In the PM sector that time will come. Is it here now, maybe, maybe not? I think we may have a bit more to go in the washout debate and if I’m correct that will provide an outstanding baseline with which to go aggressive into high leveraged companies providing possible massive profits opportunities.

            Like I said before, there are those times when an extreme stick bid in a down market with high volatility can be or is filled at phenomenal price levels never thought possible and when you get those fills in your favor that makes earning profits as easy as stealing candy from a baby.

            Bottom line is none of these little PM money makers need to be chased.

            Patience will reward you and other very very well I suspect as time unfolds.

            Thanks Glen for your contributions.

            V

            Dec 18, 2014 18:26 PM

            Kind of like my “sideline” philosophy?

            Dec 18, 2014 18:20 PM

            Not quite that pessimistic, V

            Dec 18, 2014 18:56 PM

            Al

            I’m not remotely pessimistic about gold or silvers price action or how low they ultimately go. As a matter of fact the opportunities I see unfolding over the next few years on the equities side and to some degree the physical side can be quite possibly without embellishing the truth a potential life changing financial event if done correctly and with great discernment.

            I’m going to do very well if gold takes off from current levels and rises further.
            Likewise, if it goes down to some gut-wrenching level that some think is possible, and we extend the sector weakness into 2015 opening up better prices on the stocks that I want in my portfolio that will make me a happy camper as well.

            I just don’t understand why a large contingent of folks have to wake up everyday like they are forward deployed at a DMZ outpost with a hardcore price directional demarcation line in the sand that must be defended with extreme emotions and words.

            At the end of the day all we can do is stay solvent, operate the best one can in an unfair market of unrelenting asymmetrical sector attacks and use good judgement and patience to find good companies selling at great values and buy those stocks at excellent entry points.

            Being pessimistic is a soul and portfolio killer. I have no interest in either.

            Best to you Al.

            Dec 18, 2014 18:25 PM

            Same to you V. We have exactly the same thoughts.

            Back to my Kendal Jackson reserve Pinot!

    Dec 18, 2014 18:52 AM

    I don’t know Gary…..GDX looks promising right now and if the dollar starts to trade sideways or fall then the outlook could change quickly.

      Dec 18, 2014 18:10 PM

      Bird many have dollar going to da moon..Marty armsrtong says to da moon dollar and equities.

        Dec 18, 2014 18:33 PM

        Of course I agree in the big picture. The dollar has a lot of room to run higher in the coming years and especially as the big defaults begin. Shorter term though the dollar is almost certain to decline and my gut is telling me we are there now……

          Dec 18, 2014 18:01 PM

          (Even if it does sound preposterous because of course *everyone knows* that the dollar must go higher). I just think they are wrong right now and we are heading for declines for at least the first half of the year.

      Dec 18, 2014 18:44 PM

      Let me explain it this way. If you had a 90% chance of making $50 by choosing option A, or a 10% chance of making $100 by choosing option B, which would you choose?

      That’s how I view the market right now. Stocks are entering their bubble phase and probably ready to generate the typical parabolic move… at the very least to Nasdaq 5100. I can make a huge amount of money on that with some leverage.

      Gold on the other hand I have no idea what is a real move and what is bait by the bullion banks to draw gold bugs in to be fleeced a couple of days later.

      So because I’m not really interested in fighting with the banksters I would rather just go with the better odds and stick with stocks.

        Dec 18, 2014 18:38 PM

        Do you think energy shares will generate best of return either by following general stock or oil price? I think so.

        Dec 18, 2014 18:42 PM

        If you invest in banking and tech, when this thing crash, it is an endless pit. I have large cap mutual fund for S&P. I no longer dare to buy individual tech shares like last year. For those ones which lose a few dollars a share and with a stock price of 100 dollars, how much they would be worth if there is a crash. They might just disappear.

    Dec 18, 2014 18:49 PM

    Gary.. you know what I think… your metals position like JDST or DUST must have been big enough that it creates such a huge move after you left the sector today.. :D… just guessing..

    Dec 18, 2014 18:58 PM

    Gary is right… let the big boys do whatever they want… let them own all metal complex at the bottom… let them be the ones holding the last bag and they will boost the price for profit… until then no point competing to own the bottom of metal market against them as that’s what they will not finish with you… let it be… God bless.. Merry X’mas

      Dec 18, 2014 18:19 PM

      Don’t worry, Gary will be back when gold is acting like what S&P is doing now.

        Dec 18, 2014 18:41 PM

        Hope so Lawrence… Gary’s action is most right most of the time though….

    Dec 18, 2014 18:07 PM

    Looks like panic short covering in all stocks including gold stocks. I added CyberArk software and UYM 2x materials etf yesterday but did not add heavily so added on the significant dip on these two today and now have some nice gains accumulated.
    Oil started falling back as expected but the market took off anyway this afternoon. Hopefully oil will not drag stocks down.

      Dec 18, 2014 18:10 PM

      GDX is up 4.5% on decent volume.

    Dec 18, 2014 18:11 PM

    I had an order for my 1st buy of Dust at 23 which would be about the 200 day but did not reach that level.

    Dec 18, 2014 18:13 PM

    Charters
    skeeta
    vortes

    All bear camp what are you seeing from your eyes? Honest question. Looks to me that we are heading higher with small retraces. I may be wrong.

    Dec 18, 2014 18:15 PM

    Glen,
    I’m having a tough time, and have had for weeks ( obviously ) thinking we will see this wash. I know it’s going to happen. When, is the question.

    When Russia announces they have revalued their currency, I think that will trigger what I’m looking for.

    Timing is all guesswork at this point. ..way too many factors going on at once.

    Dec 18, 2014 18:51 PM

    Chartster,

    Interesting points you bring up. I look at the charts and with each passing day it seems as gold is only getting stronger. You can never rule out another wash in gold.

    cheers

      Dec 18, 2014 18:22 PM

      Glenfidish, in these times you can rule absolutely nothing out.

    Dec 18, 2014 18:17 PM

    I agree, gold is getting stronger per the TA.
    But, we should see this last wash.

    IMHO, the bear will be complete when we get it .

    Dec 18, 2014 18:30 PM

    BTW
    Gary hit the ball out of the park regarding stocks!

    Dec 18, 2014 18:11 PM

    Gary is talking about price for oil like it is trading freely. some time ago he said that price would go up after local elections. price of oil must destroy Russian economy. that is why it went down . in2008 when Russia bombed Georgia oil went down to $30 . this time Russia is still bombing Ukrainian towns. I do not expect for oil to go up until the purpose is achieved.

      Dec 18, 2014 18:26 PM

      Agreed, Alex.