Friday, January 4, 2013

5 rules of Smack Down + Contra Indicators

We can start with Gartman, one of worst, IMO, dissemblers of all time.  What scared me most, is he actually is supposed to ``advise`` a gold fund.  OMG, heaven help those stockholders.  Let see, a U$D 1 Trillion PLATINUM Coin, is going to fix our economy, make all sense of all debts and disarm the WMD of DERIVATIVES of about 1.2 Trillion U$D or merely the 600 Quadrillion U$D the IMF recognizes.  So how many financial Nukes does it take to collapse the Global Financial System ++ probably less than 600 U$D Quadrillion worth !!

   Lets look at the freaky volatility hitting the metals, and the rules to tell when it's a smack down:

1.  Always imposed at time of ILLIQUIDITY, middle of the night or so for their skullduggery.

2.  Never a "drift-down" due to lack of interest, but rather a SPIKE-Down !

3.  Volume at tsunami level, larger than the exchanges, some % of national or
     Global production.

4.  Always Un-Economic, in that it is DUMPED, rather than fed into the    system to make the most profit.

5.  Rebound and "Back & Fill" movements eventually render the Smack-Down impotent by returning the metal to a higher level.

   These are first five signs I can think of off the top of my head as I work to understand how the shenanigans of the US and Global Western Govts fail to address let alone resolve Global Systematic Financial Failure.
Bankrupt Cities. Bankrupt States.  Federal Debt only viable at ZIRP.  None of this is addressed or resolved by trying to break the indicator pointing to the RED ZONE of Global Financial Failure.  Less than 50% of the US Population now in the employed workforce, despite the tweaking of the NFP data weekly.
   The above data is the FEDS data, no one else's.

So what do you do?  Realize that THINGS Of VALUE are where VALUE rests.
Zero's and decimals look nice on paper, but in fact that is only where they are.
When you next go to buy something, ask yourself, what means of exchange will work when paper or plastic won't.  Realize that whether NOMINAL PRICES change or not, anything NOT denominated in Silver or Gold Will Go Up in Price,
WHEREAS anything Denominated in GOLD or SILVER will GO DOWN in PRICE.  Thus, even when seeming to stand still, Gold & Silver are going UP in VALUE as historical FACT.