My 1st Million At 33 – yes, you can do it too

Overnight in Asian market, gold has broke thru $600 down to $590.  It looks like $570-$580 is a definite possibility (I wrote this at 2am, and now it’s already $583), and $550 is looking more real these days.  The million dollar question is of course whether this is the time to buy.  My gut feeling tells me that the time is almost here.  Yet I think this may not be the last chance in this year either.  I think that maybe gold will rally temporarily for a couple of months, just to break down again to all the way back.

The market behaviors have really got me thinking these days.  Every chart looks like this is the BIG commodity correction that I have always been waiting and feared, and yet this SHOULD not be the time for it.  Fundamentally speaking, US won’t be feeling the economic slowdown due to the housing market for another 6 months at least, while the bulk of the effects won’t probably kick in starting mid-2007.  And supposedly China in the meantime should weather quite well until US is at least 1/4 into the economic slowdown.  Is stock market anticipating the future by so many months ahead now?  It should be ahead of the economy by only 3 to 6 months.  Except for the withdrawal of liquidity from the global markets, I cannot understand why things are looking like this is the BIG correction.  Actually, in the BIG correction that may come, it is simply a deflation all over the places.  Even commodities in general will not fare well in a synchronous global economic slowdown.  Again, synchronous falling it is now, yet this should not be the hour.  What does the big guys in the market know that I don’t know?  Am I missing something here?

I have been mistaken since my Hindenberg Omen’s post, due to optimisms that I received from both golddriver.com in gold market and Jim Puplava’s view on the general market.  This mistake has been more than costly.  I practically lost a fortune worth more than my current primary residence.  Although Puplava is not proven wrong yet, with S&P 500 closing below 1245 on Monday, chances are that he will be wrong this time (and big time too).  I don’t have many chips left.  Once I spend thru my cash pile, the next is my 401K, or refinancing my home for even more cash.  There have been so many times that I contemplated about cash-out refinancing.  Theoretically, it should be the right move, yet I don’t have the guts for it, ever since I watched the 10-year treasury cracked thru 4.5% resistance in 2005 October.  Cash will be king, if not for the falling stock market, but for a falling housing market.