Commentaries

Gold and Precious Metals Update

Gold and Precious Metals

US Dollar Chart

US Dollar Analysis:

  • The Dollar rally has been plagued by distribution volume, and now looks like it will rally only slightly higher before declining again!
  • Study the volume on my chart.  The power volume of this move is happening on dollar selling!  Big Volume equals Big Money Flows.
  • The Federal Reserve’s action is deluding the Dollar’s fans. The Fed Balance Sheet, if it was ever really audited, would probably give Ron Paul a real heart attack.  It is unacceptable that Ben Bernanke would not even admit QE is money printing. That tells me a lot about how far down this road we are now, to US dollar perdition.
  • The Fed protects the banks, and inflation helps the banks. Inflation could spiral out of control.  Click this link now to view my Socialism’s Crown Jewel audio update.
  • Crude Oil refuses to pull back in price, along with pretty much all commodities.  The street called for $55 oil, even $45.  It’s $90!  This is not the stuff of major dollar rallies.  It is the stuff of a coming dollar collapse.

Gold Bullion.  6 Month Price Chart.

Gold Bullion 6 month Chart Analysis:

  • Gold’s sideways correction continues. Very Bullish.
  • My worst case low for the correction is 1260, followed by a blast to 1500.  Remember that I buy every 2% down, regardless of my 1260 maximum downside target.  From $1430, that is about every $30 down I am buying, because I see Gold going dramatically higher over the next several years.  $4000 is the number you need to focus on, not 1260.

Gold Bullion.  14 Month Price Chart.


Gold Bullion 14 month Chart Analysis:

  • The long term picture is bullish.
  • MACD working off the overbought condition.  I don’t think many of my competitors understand MACD.  Part of that comes from a lack of understanding volume.
  • Volume rules MACD, not the other way round.  Volume is about the flow of capital.
  • MACD is about price averages.  You are a business owner.  So am I.  Do my technical analysis competitors own any manufacturing companies that have been in business for decades?  No.  I do.  I understand capital flows and respect them above price average movements.  Think about that at year-end subscription check-writing time.  Still, MACD is a powerful indicator and it has been coming down while price consolidates.
  • MACD is essentially confirming volume.  Bullish!
  • Down price volume on the 14 month Gold Chart continues to drift lower as price declines.  Just the opposite of US dollar volume patterns.  Gold’s charts are bullish.  The US Dollar chart is bearish.
  • Investors who don’t have a 30% risk capital allocation to the metals markets should use all weakness to get involved. If you have no metal, put 20% of your risk capital into it right now.  Do it today.  I think you all will be amazed at how high Gold will be, in the not too distant future!

Gold Juniors – GDXJ Chart

Gold Juniors Analysis:

  • I issued a Sell on Friday, Dec 3rd to you for GDXJ. I want your full attention: You could be within a day of getting a new Super Force Gold Juniors buy signal.  One day!   Merry Christmas to you from GDXJ!  Take a good look at these ratios below to understand how much stronger gold stocks are going to be than gold bullion in the next up leg of the bull market.

SuperForce Gold Stock Ratios: Example: Gold, from 1387, moves up 10%.  That’s a move to $1525.

GDX Current 65% Momentum Ratio to Gold: If Gold moves up 10%, GDX moves up 16.5%.

GDXJ 239% Momentum Ratio to Gold: If Gold moves up 10% GDXJ moves up 33.9%!

Gold Stock Ratio Prices:  If Gold goes from $1387 to $1525, GDX from $60 to $70, and GDXJ from $41 to $56!

  • As the ratios demonstrate, the juniors are leading the Gold Market.
  • The GDXJ is out-performing Gold by 239%!
  • losses.  How has your financial advisor done for you in that time?

GDX 9 Month Chart

  • Compare the GDX Chart to the SGOL Chart.  GDX is yet to decisively cross the center channel line.
  • GDX will catch up and blow past SGOL very soon.
  • Senior Gold Stocks are second only to Gold in my SuperForce portfolio holdings in position size.

GDX 3 Year Chart


I have a major fresh buy signal on GDX.

Super Force Arb System

I developed a brand new trading program targeted at business owners.  It greatly enhances your ability to win in any market.  Here are the facts:

    1. I’ve got documented numbers showing 100% annual gains via arbitraging the worst structured ETFs.  You’ve heard the talk about many of these ETFs.  I view these very real problems as inefficiencies and arbitrage opportunities of unprecedented possible reward, unprecedented in the history of markets!  The door is open to previously unheard of profits and I’m here to make you a pile of money from these inefficiencies exactly as I’m doing now myself.

    1. Straddle Trades on these inefficiencies are the prime focus of my own personal trading going forwards.  All I recommend for you, is all I am doing in my personal trading accounts.

    1. Jim Sinclair has called the gold market potentially untradeable now for short term traders, so you need to look outside the box for trading profits, while holding your key gold and gold stock core positions as they grow.

    1. I use arbitrage ratio calculations, and they vary depending on the leverage used by the underlying ETFs, and the volatility at any given time. The current average annual arb gain with the liquid ETFs is about 30%, and some much higher, in the hundreds of percent annually.

    1. My exclusive arb trading service has a planned launch date for the Gold Community of January 14, 2011 and will include screen shots of a model trading account.

    1. An ARB ratio gain of over 3% monthly is pretty normal.  Imagine that compounding effect in your account.  Goldman Sachs and the insiders are making a mountain of money peddling these ETFs to unsuspecting investors.  I can put you in the exact same position as the bank insiders.  Stay tuned for full detailed information on Jan 14!

Have a fantastic Christmas.  Thanks to the Gold Community for your business this year and I look forward to meeting the challenges of 2011 for you with the very best financial positioning.  
Unique Introduction for Wed Readers: If you send me an email I’ll send you 3 of my Super Force Surge Signals, as I send them to paid subscribers, to you for free!  Serious investors of size are taking notice of Super Force Signals, with good reason.  Note my track record as it relates to my www.superforce60.com trading service.  I only trade in items you and I  both have great confidence in.  Since mid October I have booked you an unblemished record of: 57 wins and zero losses.   

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Stay alert for our surge signals, sent by email to subscribers, for both the daily charts on Super Force Signals at www.superforcesignals.com and for the 60 minute charts at www.superforce60.com

About Super Force Signals:
Our Surge Index Signals are created thru our proprietary blend of the highest quality technical analysis and many years of successful business building.  We are two business owners with excellent synergy.  We understand risk and reward.   Our subscribers are generally successful business owners, people like yourself with speculative funds, looking for serious management of your risk and reward in the market.  

Frank Johnson: Executive Editor, Macro Risk Manager.
Morris Hubbartt: Chief Market Analyst, Trading Risk Specialist.

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