Today’s action is tasting the approaching point of recognition by the markets that central bank planning has FAILED. Its like the Berlin wall coming down. The end of the game.

The puzzle is now completed. The last piece is now in place, that being the END of the govt debt cycle and the END of central banks, as we know them.

Today, Spock took 5 new long positions, with another 2 for Sydney market tonight flagged. Its too early to take profits. Maybe in 5 to 6 months down the track Spock will look at taking some real money off the table. This bull market is only just getting started after a brutal bear market that wiped 85% off the $HUI. The second worst bear in gold miners, since 1865, or 5 generations. I am expecting at least 100% increase off the 19th Jan lows over the coming months. This is a marathon, not a sprint using decaying derivatives such as the 3xers.

Have a look at this chart. Whats it saying?


Now have a look at this chart of the Barron’s Gold Mining Index. Whats it saying? The low is in for the gold miners and we are starting a large 3 wave up, within a massive bull flag, after an ABC correction that started in 2007. If this plays out, as I believe it will, we break the top of the flag in coming years. The upside is therefore mind boggling. Even if we do not break the top rail, it is still a huge move up from here.

Hence the OVERALL strategy is: Looking for long setups on weakness. Naked shorts are road kill. Hedging with a short is considered, but only in limited and exceptional circumstances, and then with only less than 50% hedged, if and when it is appropriate. Long is the strategy for at least the next 6 months or so.

Trade well and prosper. Spock.