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

Time after time, the only time that gold can drop by 2+% is during the open hours of London market and US markets. Majority of the time that it drops is right before US market opens, or 12pm EST in the US market. Don’t ask me why, but that’s the conclusion from my DAILY observation of Kitco’s gold price charts for the last 5 years. Are there exceptions? Yes, I only remember once, and that was during the selling panic at the bottom coming down from the May 2006 peak.

Last Friday was the option expiration date. You can call it volatility or manipulation as I prefer. But what matters is the closing price at 4pm Friday. Whatever closing prices that are the best for the brokerage houses, they will attempt to do so whenever economically feasible. The only way to beat this is by carrying over your positions through expiration date, or hold your physical metals yourself.

I think there is a good chance that gold/silver will break new low in this coming down wave. However, that will really be a gift for you. In the recent history of the last 8 years, there was ONLY one time that the daily MACD of HUI goes below about -10 level, and failed to turn around immediately. That was 2006 May. Of course, you get a very low point which holds after that. On the other hand, such low does not guarantee any good ROI, because gold/silver did trade in a range for a LONG time after that. Despite that, I do believe that since the last rally to $1030 for gold was the shortest on record, and that I still believe that we are in the major wave 3 of Elliot wave theory, I think the wait for precious metals to turn up should also be shorter.

With stock markets zooming up, and $US dollar turning up, the manipulation can only go so far. Mortgage rates have gone up quite a lot as I have expected (and informed to those who have contacted me for refinancing deal back in February/March). You can manipulate something, but not everything. With the “hot”-selling season of summer coming, higher mortgage rates simply will make things worse. Well, of course, Fed is going to take up all the bad mortgages on their own book. But that doesn’t make the bad mortgages better. It’s only a transfer of losses, or rather in this case, manifest as more monetary inflation.

COMEX can drive down commodity prices all they want, but they can’t increase the actual inventory of commodity. Manipulation only makes things worse, by preventing producers to produce more at a profit. And a shrinking grain stockpile is not of any consolation to those very poor and hungry people in the third world country.

The next selling point in my HUI trading model lies around 430 to 425 level which can come as early as today. After that, HUI can go down as low as 370, at which point, I recommend loading up both physical and stocks.