Goldcorp, Gold Mining Sector Surges

Gold comex has made a strong surge from its lows in mid September, but the mining sector has not followed the metal.  Instead mining stocks have followed the main markets to the downside.  Today we saw a reversal, the Gold Bugs index surged 19% as the rest of the market was making new lows.  There seems to be no end to this selloff despite unpresedented market interventions.

The pundits claim there is a liquidity crisis, but this is simply not true.  It is a confidence, and trust issue.  There is an incredible amount of money that is on the sidelines right now but they are not interested in owning housing related debt products because there is no value in that sector.  Besides the regulators have been changing the rules the entire way down, why would anyone be looking to invest in the financial sector?  Only taxpayer dollars could foolishly be wasted on this.  Intelligent investors ARE looking for a safe longterm investment, and I think they are seeing value in the gold sector.

Here is the HUI index which is showing bullish divergence on the MACD.

Here is a 10 minute chart of GG, showing where I entered today.  It has overlays set according to The Guppy Multiple Moving Averages.  Here is a good article that discusses how these overlays can be used to identify a developing trend.

GET OUT OF U.S. EQUITIES, NOW!!! 10-3-08

LATELY WHEN WATCHING THE MARKETS, I’VE FELT AN INCREDIBLY POWERFUL FORCE BEHIND THE MARKETS.  SOMETHING I COULD NOT RATIONALLY EXPLAIN.  ANY TRADER CAN SEE THIS INCREDIBLE SELLING PRESSURE AND I BELIEVE WE NOW HAVE AN EXPLANATION.

WATCH THE TICKER.

PREPARE FOR ANOTHER DISASTER ON WALL STREET IF THE RESCUE BILL FAILS TO PASS.  IT WILL NOT BE A 800 POINT DROP.  IT WILL BE FAR MORE SEVERE.

IF FOREIGN INVESTORS DO NOT GET THEIR BAIL OUT THEY WILL LIQUIDATE THEIR REMAINING EQUITY HOLDINGS.  THEY WILL CUT OFF ANY REMAINING CREDIT TO OUR MARKETS.  YOU WILL FEEL THE FORCE BEHIND THE SELLING IF YO HAVEN’T ALREADY.  DON’T GET CAUGHT HOLDING THE BAG.

Biggest Ponzi Scheme in History

A Ponzi scheme as defined by Investopedia:

A fraudulent investing scam that promises high rates of return at little risk to investors. The scheme generates returns for older investors by acquiring new investors. This scam actually yields the promised returns to earlier investors, as long as there are more new investors.

also…

A Ponzi scheme is similar to a pyramid scheme in that both are based on using new investors’ funds to pay the earlier backers….

Oh, and don’t forget…

For both schemes, however, eventually there isn’t enough money to go around and the schemes unravel.

Why do I bring this up as the senate is about to vote on the “reformed” $700 billion dollar rescue package?

There is an incredible amount of riches tied up in real estate and equities. The baby-boomer generation, who have experienced the most prosperous years in the worlds history are about to retire. Enjoying a prosperous retirement is almost entirely dependent upon real estate prices remaining high. Not only that but they need future buyers to purchase their assets at inflated prices so they can retire rich and fat.

However, this Ponzi scheme will collapse just as they all do. The younger generations cannot support the baby boomers because there is not enough money to go around. The rescue package is a blatant attempt to prop up asset prices so the holders can quietly exit the markets before getting slaughtered. They are trying to stick the future generations with the bill, and it will be huge.