Mr. Bear’s favorite little playground
Where would that be? Well goldbug-land of course. Believe me, I am a dyed in the wool goldbug myself, but years of Mr Markets abuse has trained me to be cautious and check my emotions and hope at the exchange door. I want to make money I don’t need to prove to the world that the evil money printers are wrong and we goldbugs are morally right. I got over that years ago, now its about the money in the trade.
So let’s first look at the most bearish chart in the world as of today…the GDXJ. We all know how the juniors led the rally, so prospective were these little stocks that they formed a consolidation on top of their consolidation. Why own the majors when it was the juniors who were on fire! The bulls were just waiting for the GDXJ to break out and resume the move. But something happened on the way to grabbing the brass ring. Mr. Market dispatched his trusty lieutenant Mr. Bear. When Mr. Bear shows up you better pay attention as he has many tricks up his sleeve.
How about this one: a super bearish run around double APEX on massive volume. Folks this is no little shakeout before the break out. This IMHO is an end of move. Mr. Bear just stepped onto the stage and made a loud public announcement that he is back in the saddle and he is in your face!
Why does Mr. Bear like to play here so much? Its because the player’s get so excited and are easy to decieve. Maybe it has to do with gold and silver as a shiny object or something and how we humans are so attracted to them.
He simply took no prisoners today. Mr Market has spent the past 2 months getting everyone to lean over onto the bullish side of the boat. Now that he has gotten everyone there he has dispatched his trusty operator Mr. Bear and he is so giddy because his work is now so much easier as of today as the bulls now recognize the gapping hole in the side of the boat and the water is rushing in. Its time now to yell fire in the crowded theater.