Sunday, December 16, 2012


Okay, I could not resist the price again. But this time I only bought 5k shares last Friday of Claude Resources Inc. (CGR) for 54 cents. 

There really is nothing more I can say other than the market has priced this stock/sector wrong. A person who can be patient will receive a reward that is going to be rather impressive.

My TSI Trading record has been updated.

Here is a 27 year look at the XAU:Gold ratio.

Click on this chart to ENLARGE

I think it fair to say that miners are about as cheap in comparison to the price of gold as they have ever been.

And another chart of the ratio with a little closer view - 15 years.

Click on this chart to ENLARGE

My thoughts about gold's daily cycle count, and so on, has not changed.  We are now in the second daily cycle of the second intermediate cycle of the C-wave. For starters, if gold has not yet completed it's daily cycle, as some fantasy, then it is a left translated daily cycle. This has never happened in a single C-wave, save for the obligatory occurrence as the final daily cycle of an intermediate cycle. 

Further, a take out of $1672.5 would then define that the first intermediate cycle was left translated. There has never been a left translated C-wave intermediate cycle, save for the intermediate cycle that included the C-wave parabolic top (2002 and early 2004). 

I suppose the bull is entitled to redefine it's rules any way it pleases, but from my vantage point I have to go with the odds (99.999%) that the rules are the rules - and there is no possibility that this daily cycle is either redefined as stretched, left translated or the final daily cycle of the first intermediate cycle of this C-wave.

For now, the price of the current Day 6 daily cycle suggests that $1684.1 is the price level that should not be breached. At this moment we are trading just $2.00 higher. Great entertainment, don't you think?


  1. John, in with you on this one at 53.9 cents.
    Just let us know when you plan on dumping ALL those shares you have.

  2. John, may be miners are telling us that gold is expensive? Signaling the trouble for the sector ahead?

    Your thoughts?

  3. AM - I guess I should be open minded and give your thought some possibility,
    but frankly I cannot. There is no way in the world the sovereign nations can
    continue to so aggressively debase their currencies and have me believe there
    are no consequences. That one can manufacture money and spread it around
    in the trillions, charging literally no interest, is a sure sign of desperate
    insanity. That a sovereign nation can incur so much debt that it is unable to
    even meet the interest payments of servicing it's debt - without raising its
    *debt ceiling* and thereby trying to use more debt to solve debt insolvency - is
    as stupid as thinking the more shots of heroin an addict gives himself the closer
    he is to being free of his addiction.

    Money is paper. It is only has value if people think it has value. Slowly, as the
    currency is devalued all recognize that the paper money's value is shrinking...going
    to ZERO. Slowly, faith in paper money diminishes and people look for investments
    that are not losing value - not losing buying power. Investors will increasingly look
    for ways to take their 'money' out of sovereign debt 'paper promise' investments - like
    T-bills and Treasury bonds and put it into something else that they see is not losing value.
    Commodities, like oil, wheat and gold become attractive alternatives - assuming they
    are not losing value like paper money.

    No I do not think gold is expensive at all. One ounce of it still buys everything today
    that one ounce of it could buy in 1925. And as the spector of inflation begins to take
    hold - and it will at some point due to the incredible printing of money - $1700 gold is
    going to look pretty damned cheap.

    I bet you didn't want me to give you my two cents worth, but I'm all typed out (for now).
    Thanks for the question.

  4. John,
    I saw this funny video on u-tube by Ray Stevens and thought it went well with your right-on comments above!
    Here's the link:


  5. Thanks Gerald. The video was funny and, sad to say, painfully close to the truth
    while pretending Obama's policies are just a silly humorous joke.

  6. John:

    If gold give us a curve ball and violate the C wave rules taking out US$1684 and even US$1672? are you gonna sell positions?

  7. No, I am NOT going to sell any positions.
    I'll try to do a post on this later today after work.

    All that is going on is that the 1st intermediate cycle
    of the C-wave has not concluded. Instead, we are getting
    a second consecutive left translated daily cycle. This
    happened in the second intermediate cycle of the previous
    C-wave (Dec '10 / Jan '11) and also in the second intermediate
    cycle of the C-wave following the 2006 parabola (May / June '07).
    None of the other C-wave first intermediate cycles concluded with
    a pair of left translated daily cycles. I guess this example will
    go down in the books as the first.

  8. Gold at $1671 at the time of this writing.
    It looks very weak!!
    Some are saying $1550 cannot be ruled out!
    What to do now???
    Your wisdom, John??
    Guide us, please~