Golden Wars Chapter I - Attack by the Fedi

What a week for gold, where do we start and where do we end when it comes to trying to explain what just happened in the last few days.  All I can say is "GOLDEN WARS" has just started and the first attack was made by the Federal Reserve this week.  If I had to write about "The Golden Universe" and what just happened,  I would call the introduction to the Gold Saga, Chapter I "Golden Wars - Attack By The Fedi".  

This week in Golden Wars, the markets where trending normally for the first couple of days and then on Wednesday afternoon something went very wrong in the Golden Universe, we had the Fedi speak (No, not the Jedi Ben Kenobi, but the Fedi Ben Bernanke).  All of a sudden the stock markets and commodities including gold went into free fall from an ambush attack by the Fedi.  Did anything really change in one day to justify such a sell off from this attack? Everyone could easily see Operation Twist coming (I love the code names they give to Fedi Speak) so it was already priced into the market.  What the Fedi didn't speak about was "Stimulus" and that is what probably sold the market off and with vengence, the Fedi wants fear to permeate thru the market.  Now that we know interest rates are going to be kept low indefinitely and there is no Stimulus coming yet, the market psychology went bearish in a matter of seconds.  Wow, the Fedi is good when it comes to his powers of influence and mind control,  he has learned well from Master Keynesian after he turned to the dark side.  

In one day, the Fedi was able to destroyed trillions of dollars in paper wealth all around the world.  In a past Golden Fortunes Weekly Review, we wrote about how quickly the pillars of the financial world got demolished in a matter of hours on Sept 11 2001.  I am sorry to tell you Master Osama from the Afghan region of our universe, the Fedi has you out mastered when it comes to his powers of destruction.  Osama powers must have been weak from hiding in his cave and running away from the Fedi Army all that time, now he lays at the bottom of the ocean unquestioned and unaccountable for his supposed crimes. Master Osama's powers of FORCE is no match for the Fedi when it comes to death and destruction of wealth, the Fedi made sure of that.  The Fedi is much more powerful and is in full control of his universe, he is now channelling his energy on destroying whatever little wealth is left in this world.  At a zero percent interest rate environment, he will easily kill off all the savers of the world, that is something he has taught his young apprentices on Wall Street decades ago and they are also good at using their FORCE in destroying wealth and stealing energy from the common man. 

Is the Fedi so powerful that even he can Control GOLD, the only wealth that was suppose to be a safe haven and immune to Fedi control powers? 

All we can say at Golden Fortunes is Yes, the Fedi is that powerful. 

Remember, he has many other masters who also posses the powers of FORCE and they are all trained to attack GOLD when the time is right.  As the story goes, we are in Currency Wars and the marching orders for the attack on gold and silver was issued without even saying a word. This was done during Fedi speak on Wednesday when he was discussing the economy and what the Fedi thinks is best moving forward.  His young and well trained apprentices went to work quickly after the attack signal was given and they stole the energy out of many Golden Freedom Fighters.  Remember the Fedi is currently all powerful and all controlling, he has mastered the use of FORCE (the printing press) for his benefit and their is no one else able to challenge his powers. 

So the Fedi will continue attacking gold when the time is right and he is positioned to win.  This may go on forever until GOLD, the last Hope for Financial Freedom and Independence has been killed off and exterminated by the Fedi.  Wielding his mighty light saber, the Fedi will slash and kill every Gold Bug with great speed.  The Fedi's goal is to destroy anything and anyone who attempts to rise up and challenge his powers and mastery of his FORCE.  This past week, he has won a great battle leaving many innocent people sliced up and left for dead, but the war still rages on.

So, what does this mean for Gold and the gold stocks now that the Fedi and friends have drawn there deadly light saber and attacked without abandon?  With a simple stoke of his energized wand (the printing press) and the use of his FORCE, he ambushed GOLD and all his followers killing off almost 50% of Gold's life force in less than 3 days?

But there are people out there who still believe in the Golden Force that binds our monetary universe, if you understand the power of GOLD, you know that the Fedi is powerless.  Yes, he was successful in bringing down prices in all stock markets and especially precious metals in the very quick attack, but his powers are getting weak and the rebellion (anyone who believes in gold and freedom) against him is growing stronger by the minute. 

All the Fedi did was give the Golden Universe a great opportunity to exchange the Fedi Paper Money that he endlessly prints for more gold and silver at a cheaper price. His powers of manipulation and deceit will be short lived, he may have temporarily won this ambush attack,  but the rebellion is ready to fight back and defend Gold, hopefully ending the Fedi powers of FORCE for good.  He was successful with his attacks on gold and silver because he knew there was not going to be a stimulus plan, something the market may have been pricing into Gold and commodities in general.  By killing off any hope for growth and additional demand for commodities, the fed used his powers of FORCE to start tide wave in commodities and I am sure his well informed allies where also quick on the sell button.  Then on Thursday, one of his partners in the use of FORCE, the Comex (Crimex) decided to ambushed gold with an margin increase of almost 20% without warning the market, this created a title wave of selling throughout late Friday. We at Golden Fortunes did hear about it until Saturday.  The Fedi was successful in cutting gold's recent gains in half in a matter of 3 days, his powers of FORCE is strong because it come from a vale of secrecy, manipulation and control. 

The Fedi was successful in allowing a slowdown in the economy to ensue by not mentioning stimulus. Why?  Because the Fedi is more worried about financial stability over the next 6 months.  The Fedi is not in a position to stimulate the economy at the moment, this powers of FORCE (printing press) will be used to help stave off the financial crisis that is brewing around the world.  He will continue to use his FORCE to help save his banker buddies all over the world as the financial collapse ensues.  A big battle is brewing right now and all his FORCE will be used to save the Financial system from collapse. The Fedi will most likely be buying assets at the bottom of this collapse and thus secretly stealing everything from everyone at a cheap price, taking a look at the last 10 year he has been very successful so far.  When the Fedi and his trained associates are done this raid on the markets and they have had their fill of stealing wealth and energy from anyone in their domain, they will justify a HUGE stimulus package (probably the biggest one in history) to help save the world and markets.  When the Fedi is full of stealing all of the world wealth, he can then send the marching orders to stimulate and create the next biggest boom, that is when commodities will rebound. 

The Fedi is powerful in FORCE, but so is the GOLDEN UNIVERSE.  Gold maybe wounded right now, but he will bounce back and become the great equalizer in this world of Control and Force.  But being ambushed and attacked by the Fedi in the last 2 weeks, gold will need time to heal, regroup and develop a strong strategy moving forward. 

Is the Fedi attack over?

Probably not yet, but the Fedi is getting weaker each time he makes attacks like this.  There are other golden freedom fighter around the world (China and India) who are more than willing to buy precious metals at these prices and lower if the Fedi is still silly enough to use his FORCE (printing press) to manipulate Gold (financial freedom) prices down.

So what does that mean for Gold and anyone who is a believer in the GOLDEN UNIVERSE.  Sit back, relax, learn more, gather your strength and energy and know your are on the right path to freedom because you have chosen to believe in the GOLDEN UNIVERSE.  You will be rewarded in the future for your hope and belief in GOLD, if you take a longer term view much like China and India does.  Stay the course, the Fedi will lose this battle eventually and balance will once again be restored in the Golden Universe. 

Eventually gold will move opposite of the over all markets and trade based on true fundamentals like supply and demand of actual physical bullion and not the paper games played at the Fedi controlled Comex.  At the end of the year, we will know what gold's true price for physical delivery will be and hopefully the Fedi's power to control Gold and Silver will come to an end.  But until then, yes the Fedi can try and control GOLD for the next few months in a managed retreat, but as his powers of control has weaken and Golds Purchasing Power GPP will only increase in value as it has done over the last 40 years.

Can we do anything to Stop the Fedi control over his financial world?

YES, below is what every good citizen in the GOLDEN UNIVERSE should be doing over the next few months, but timing is everything and we don't want to be catching a falling knife.  Wait for timing your trades and purchases because at the moment we don't see a need to rush into the gold market just yet unless things erupt in Euroland.  The Fedi equivalent in Euroland is just as Evil when it comes to control, but he is also very weak and could be losing his powers of FORCE very quickly if someone in Euroland does not like the terms or can't not pay their extortion fees for being a part of the Fedi Universe.  The Fedi is still watching and he will attack gold when the time is right for him, but his power of control by FORCE (printing press) is diminishing and will soon be non existent shortly, then we will have a more balanced GOLDEN UNIVERSE.

• Buy physical Gold and Silver on any further dip.
• Place low ball bids on the good gold mining shares for the moment or just stay out for now.
• Do not chase prices higher, let the market come to your price and then start building a position.
• Review your current portfolio, get rid of the dogs, keep the winners, build some cash and be ready to take action when a good trade presents itself.
• The Fedi has done you a favour by attacking gold, be smart and add during times of weakness.
• Consider selling on strength if you need to raise additional cash, not during times of weakness like the last few days.
• If you can not manage margin, do not use margin.  In fact, you should be off margin already and have a good holdings of cash.
• Short Selling is one of the tactics used the market manipulators.  Take this power away from them by eliminating your margin account at the discount broker you trade with.  He is renting your shares to other short sellers, collecting fee a fee and the shares are then being used against you and your long gold positions.
• Over the next few months, build a core position in your favourite gold stock, something you want to keep for the next 10 years, and consider asking your broker for the actual share certificate. There are much bigger problems in this paper stock world than you realize and taking the share certificate in your name is very wise, something we will explain later.
• DO NOT short precious metals, mining companies or ETF which are actually backed by bullion.  By you going short to create a hedge, you are actually helping the Fedi suppress prices, something they want to happen so they can steal shares and bullion from you.
• Channel your energy and create a longer term focus and view of Gold, it is in a 10 year bull market and still has another 10 years to go.
• If you are new to gold Investing, take time to learn about the gold market from industry experts, read as much as you can and possibly sign up to receive a paid news letter from someone who is specialist in gold.  The cost of a few hundred bucks is well worth the time, money, and energy you will save, especially at time like this when the gold market is under attack by the Fedi.
• The fundamentals for evaluating gold mining and juniors are totally different from any other sector out there.  Learn the Gold fundamental, but keep in mind it seems to trade very technically most of the times.
• Do not listen to anyone who says Gold is in a bubble, they are ignorant or lying to you just like the Fedi  and his propaganda media machine does.  They do not understand gold and have been instructed to discredit it.  The last thing the Fedi want is competition in controlling Money, only he want the power of FORCE (the printing press) and will do anything to keep this power.
• When the time is right, consider doing the opposite of what the Fedi market wants you to do, Buy when the Fedi says sell and Sell when he says buy.
• Expect volatility in precious metal and use them as trading opportunities if you understand technical analysis.  If you don't, then please to not trade these markets, you will be sliced up by the professionals who are waiting to steal your wealth and energy.
• Change your mindset about investing in Gold, when there are days of extreme of fear like Friday, consider them as great buying opportunities.
• On days of extreme optimism about gold or the mining stocks you should sell into that optimism, this is when you will most likely book some good profits
• Manage your positions, margin and money well.  Remember, you are the final say in your trading decisions. Treat it like a job and do not let your emotions get involved even on a losing trade.
• The Fedi is very powerful and connected to thousands of bankers, investment/brokerage houses, rating agencies, regulators, courts, government officials and private companies all around the world.  By using FORCE (the printing press) the Fedi works with all of them in secrecy to make rules, regulations, create market distortions, create booms and busts all in order to steal your wealth and energy. When you have nothing left, they will have won the GOLDEN WAR, because you will have no freedom left. You will become a slave to their state, begging for food and a place to live. They will try and take the life energy from you and make you their slave, do not let them do that.  Channel your energy and focus on what is best for you and your family, do not give into their fear tactics. That is how they will beat you and you will then become a slave and pawn in there game of control. 
• We live in a world with no financial over sight, no one will protect you and your financial wealth, there are no regulators such as the SEC or the Canadian equivalent. But there are many bankers, brokerage houses, hedge funds, pension fund, sovereign wealth funds, private dark pools, see article about Goldman Sacs newest Dark Pool out their to steal your wealth.  Everything and everyone is corrupt, they are all now attacking each other just to make Dollar, accounting standards have been thrown out the window, balance sheets and income statements don't mean much.  We are in uncharted territories where there are financial rules, but none of them will be enforced unless it is for the Fedi's benefit.  
• Insider trading is probably a common place, that is how they co-ordinate attacks on the markets, remember the Fedi is all powerful in Control and usually gets what he want, his apprentices are also good as stealing wealth too, so be careful.  
• If you have a weak stomach for market volatility or do not understand it, then we suggest you stay out of the market all together.  For the last month, we have been warning everyone to get out of financial stocks.  Now, we suggest get out of the market all together if you do not have time to follow it on a regular basis.  Sell the mutual funds, stocks, bonds ... almost everything you can and go to cash, there will be a much better time for you to enter the market later on down the road. If the market crash does not come and the Fedi was successful in papering over the financial world, you can always buy back later.  
• We are entering crisis mode and the markets have been warning us for month several months.  The problem is not with GOLD, it's with financials, banking, govt bonds and DEBT in general, this is what we face in the next 6 months. The Fedi and friends have been ignoring the problems for way to long and now it is out of control and the issues will be dealt with soon.  Remember, the Fedi always gets what he want and that is FEAR in the markets, he will use it to his benefit. 
• Under the Fedi rules of his financial world, he rewards his friends for bad behaviour and punished good behaviour.  Bankers are rewarded, Savers are punished, this is what you are dealing with.  But the Fedi's control of for gold is about to change drastically, his world is crumbling around him and he is desperate.  As his banking cartel implodes, the Fedi will be in panic mode and will pull out all the stops, but remember is energy and focus is on saving himself and his banking buddies. The Fedi will use his powers of FORCE and print what is necessary to save the system as banks fail.  Use this energy against him.

TTGD S&P/TSX Global Gold index Analysis

Lets take a look at our weekly analysis of the TTGD S&P/TSX Global Gold index to see what technical damaged the Fedi has done in one fell swoop.
As you can see on the chart, the mining sector was in a good strong uptrend since June when we called the bottom on gold and the gold mining index.  The up trend lasted for about 11 weeks (notice how the top was placed on Sept 9 and it took 11 weeks to get there and complete, 9-11 coincidence? maybe.  What took 11 weeks to build in a 5 wave uptrend was easily destroyed by the Fedi in 2 weeks in a ABC manipulated correction.  At least we can say the Fedi is still powerful and consistent in his ability to destroy wealth very quick,  the index dropped about 66 point or 14.57% in 3 days.  In 2 weeks, the Fedi was successful in a 14.95% drop from top to bottom.  What took 11 weeks to build, a move from 351 to 455 (a gain of 104 points and an ROI of 29.63%), was quickly halved and destroyed by the Fedi, the index gave back about 50% of the gain so far, which happens to be a Fibonacci number.

So is the correction over and is the Fedi done attacking gold?  That all depends on how hard and willing the freedom loving rebellion fighting for Gold meets the Fedi's manipulation tactics and responds in the next few trading days.  We have 3 possible scenarios unfolding in the next week.

1.  Bullish case, the index charges right back to the 50 dma at 410 in the next 2 trading days.
2.  We get more side ways action at support around the 200 dma.
3.  Bearish case, the market continues to correct to the next Fibonacci number or at this past summer's support at 350.

At the moment I am leaning toward the ABC correction is over and we should build support at these prices.  But I am definitely not buying right away, I need to see how this week plays out because we could see some additional weakness.  There is no need to rush into the mining stocks unless gold bolts out of the gate on Sunday night and doesn't look back over the next few trading days.  If we start developing a sideways pattern over the next few weeks, the mining stocks will be an ok buy on dips or low ball bids.  At the moment, we don't see an explosive upside happening as the technical damage is done and needs time to repair.  Keep low ball bids on your favourite gold stocks for long term hold.  If there is a need to quickly add to positions we will let you know ASAP, but you may want to read our Daily Golden Nugget Blog as we comment about trading activity on various gold stocks, ETFs, possible trade setups and general commentary on the market action that day.  Given the volatility we see moving forward, at any moment we may change our views, trading positions or get out of the markets all together. 

While we are taking a wait and see approach on the gold stocks, we feel the best trading opportunity will be Shorting Financials in the coming weeks and months ahead.  Gold and gold stock might be in healing mode from this The Attack by the Fedi and may take time to rest and possibly even get weaker on further attacks.  This is actually very good and a healthy as Gold has been fighting a great battle for the last 3 month in the 5 wave up trend it had been in.  The ABC correction was supper fast and now the damage is done because the Fedi was successful in his FINAL Ambush attack on Gold, next time he will not be so successful because his powers of FORCE will be challenged very soon. 

Who this mysterious being and why is he so bold trying to take on the Fedi and defend Freedom, is he buying gold and silver and asking for delivery on the Comex?  Maybe he knows that the Fedi's wingman JP Morg so heavily short in the Crimex that any wealthy Gold Bug could easily squeeze JP to death and send him to the Morg with a simple mind control he know about.  Any individual who believes in the GOLDEN UNIVERSE can easily kill JP off by whispering 2 simple words "Short Squeeze" .  Just the suggestion of this should have JP very worried, let alone the Class Action law suites that would follow, JP better start playing nicely or he will be sent to the Morg.  

At the moment, I am Neutral on Gold, so for now I am staying away.  It's probably the best thing to do, GOLD is going to be our savoir but for now he needs rest.
I am more interested in punishing bad behaviour, which is the Fedi and his evil empire.   One Sept 22 2011, we issued a possible new trade alert for anyone who wants to go short financials or create a hedge for their long financial position. 

I really like the Chart of:

HFD-T - This is the Horizon Beta Pro S&P/TSX Financials Bear ETF  for Canadian residents
SKF-N - This is the Proshares Ultra Short Financials ETF for US residents.

I am already Long on HFD from Aug and the trade is working for me, so I am willing to continue holding if the financials do breakdown like I think they could and this ETF could be a big winner.  I am considering adding more to this position once a good trade confirmation is put in.  If and when the breakdown start to happen, I will jump in right away and add to my position, then bid more on pullbacks if the trade continues to work. The plan is to add to this winning position at the beginning of the this breakout and then hold until the indicators are telling it is really overbought, my price objectives are met and the technical charts tell me its time to sell. I would suggest reading and keeping up to date on this trade and others on our Present Golden Trade Alert Page where we provide updates on a regular basis.

There are many things we can do to protect ourselves during times of Financial War, the list above is just the starting of what can be done.  As the story of GOLDEN WARS develops over the next few months, we will try and keep you updated in the Golden Weekly Review news letter and on our Golden Blog called The Daily Golden Nugget, there are many more chapters to come in the future and we will be discussing the issues that pertain to the GOLDEN UNIVERSE.  

Yes, the GOLDEN UNIVERSE can be easily brought back into BALANCE and can be easily done thru non-violence, that is the way of the GOLDEN FORCE.  PEACE, LOVE AND HOPE and UNDERSTANDING can bring any bad situation back into BALANCE.  The only problem is the Fedi and his masters won't allow that to happen, they enjoy their control way too much.  Maybe one day, someone will be willing to stand up, take the challenge and BRING BALANCE BACK TO THE GOLDEN UNIVERSE.  Maybe he is already here.....
 

"May the GOLDEN FORCE be with you, Always"

Golden Fortunes.