Let's face it boys. January 22nd is goping to be one hell of a ride for the financial markets. The foreign markets have weighed in with an atrocious response to the anemic, but paniced Bush stimulus package. It's like the rest of the world woke up and said," Wait a minute, it's THAT BAD over there?!"
Gold has taken a hit, but rebounding in the overnight markets. I say lay low for the dawn of the market open and strike quick if gold shows any weakness initially. If it shows strong out of the gate, your existing positions recommended by SOC should fare you well.
What everyone is waiting for is to see if a full market panic erupts or if this is just a little flare before the big drop. Keep locked in and play defensive throughout. Watch the gaps on the open, they may be really big.
Here's some advice from Jim Sinclair:
This is it.
The DJII futures are down over 500 points.
If the Federal Reserve fails to take emergency action before the US opening tomorrow, you will see the DJII open down 1000 points as the public joins this professional panic.
Everything you see happening is contained in the Formula, which will be the catalyst that takes gold again above $887.50 and to $1650.
As long as you have followed my plea to have NO MARGIN on anything gold I see no problems.
If you have margin the rule is never meet a margin call, but sell whatever is needed to meet the call or more, never less.
It is a better wager that the Fed will immediately drop rates by 1 full percentage point.
It is a slam dunk that all Western central banks will cut loose and flood the world with more liquidity than ever seen before.
If central banks fail to cause a torrent of liquidity from their unending check books then $450 trillion of derivatives will take us to the world of Mad Max.
Monetary inflation ALWAYS causes PRICE inflation even without strong business conditions.
Prices of hard and transportable assets rise regardless of business conditions.
All currencies fall and the stronger currency is the laggard in the race to the bottom of the tank.
Stocks Plummet in Germany, Hong Kong, India, Brazil in Rout By Sarah Thompson
Jan. 21 (Bloomberg) -- Stocks plunged in Germany, Hong Kong, India and Brazil, and U.S. index futures dropped on mounting speculation that the global economy is slowing and company defaults will rise.
Europe's Dow Jones Stoxx 600 Index fell the most since the Sept. 11 terrorist attacks and sank into a bear market, as Allianz SE and BNP Paribas SA slid. Hong Kong's Hang Seng Index had its biggest drop in six years after BNP Paribas said Bank of China Ltd. may write down overseas securities by $4.8 billion because of losses from U.S. subprime mortgages. Citigroup Inc. retreated in Frankfurt.
The MSCI World Index slipped 2.4 percent to 1,402.75 at 2:44 p.m. in London, extending its decline from an Oct. 31 record to 17 percent. India's Sensitive Index lost the most since 2004, while Germany's DAX slid the most since March 2003. Futures on the Standard & Poor's 500 Index sank 3.4 percent. Trading in the U.S. is closed today for Martin Luther King Day.
``It's the worst I've ever seen,'' said Johan Stein, who helps manage the equivalent of about $14 billion at Nordea Asset Management in Stockholm. ``The financial system is in terrible shape, and no one knows where this will end.''
The DJII futures are down over 500 points.
If the Federal Reserve fails to take emergency action before the US opening tomorrow, you will see the DJII open down 1000 points as the public joins this professional panic.
Everything you see happening is contained in the Formula, which will be the catalyst that takes gold again above $887.50 and to $1650.
As long as you have followed my plea to have NO MARGIN on anything gold I see no problems.
If you have margin the rule is never meet a margin call, but sell whatever is needed to meet the call or more, never less.
It is a better wager that the Fed will immediately drop rates by 1 full percentage point.
It is a slam dunk that all Western central banks will cut loose and flood the world with more liquidity than ever seen before.
If central banks fail to cause a torrent of liquidity from their unending check books then $450 trillion of derivatives will take us to the world of Mad Max.
Monetary inflation ALWAYS causes PRICE inflation even without strong business conditions.
Prices of hard and transportable assets rise regardless of business conditions.
All currencies fall and the stronger currency is the laggard in the race to the bottom of the tank.
Stocks Plummet in Germany, Hong Kong, India, Brazil in Rout By Sarah Thompson
Jan. 21 (Bloomberg) -- Stocks plunged in Germany, Hong Kong, India and Brazil, and U.S. index futures dropped on mounting speculation that the global economy is slowing and company defaults will rise.
Europe's Dow Jones Stoxx 600 Index fell the most since the Sept. 11 terrorist attacks and sank into a bear market, as Allianz SE and BNP Paribas SA slid. Hong Kong's Hang Seng Index had its biggest drop in six years after BNP Paribas said Bank of China Ltd. may write down overseas securities by $4.8 billion because of losses from U.S. subprime mortgages. Citigroup Inc. retreated in Frankfurt.
The MSCI World Index slipped 2.4 percent to 1,402.75 at 2:44 p.m. in London, extending its decline from an Oct. 31 record to 17 percent. India's Sensitive Index lost the most since 2004, while Germany's DAX slid the most since March 2003. Futures on the Standard & Poor's 500 Index sank 3.4 percent. Trading in the U.S. is closed today for Martin Luther King Day.
``It's the worst I've ever seen,'' said Johan Stein, who helps manage the equivalent of about $14 billion at Nordea Asset Management in Stockholm. ``The financial system is in terrible shape, and no one knows where this will end.''
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