THE GREAT GOLD CRASH OF 2013

I write that title for different asset classes, once per week. Last week it was bitcoin, today gold. Next week, God willing, I will write “THE GREAT DOW JONES CRASH OF 2013.”

Life is good, except for heavy buyers of gold bars. Those bozos are getting punched in the face and penis repeatedly.

Let me preface my belligerent mocking with a side note. AG is my largest position right now, oddly enough. I’ve said it was heading for new 52 week lows. I even provided you with a list of metal stocks that were easy short, gunning for 52 week lows.

Lo and behold, as fate always has it, “The Fly” is caught in the middle of a maelstrom, competing with degenerates and malcontents for egregiously sized capital losses. Thus far, for the day, I am down by 4.5%!

Good to get that tidbit out of the way. It’s time to get back to mocking all of the retards (myself) who are long gold.

Seriously, you Ron Pauls out there make me want to vomit myself. Why would you take possession of gold bars and place them in vaults? As sure as I am writing this, some pleb sold his bitcoins at $65 and transferred the proceeds into gold for ‘safe haven’. The market is taking a wrecking ball to the Tea Party and anyone that bets against the Federal Reserve.

Today is a great assault on all of the conservative talk show advertisers and their gullible listeners. It’s the great silencer for Peter Schiff and others of his “ilk.”

SILENCE, as the laws of depravity take hold of the precious metal cabal, effectively leaving them in ruins.

Repeat after me.

“The dollar is the only safe haven.
Gold is NOT money.”

I expect the liquidation in the commodity space to spill into the general market soon. We are doomed for a 10% move lower, now that taxes are done.

The sector has been screaming bloody murder for the better half of 1 year, constantly underperforming the general indices. Whoever is focused on metals/mining should be getting margin call’d out today, if not tomorrow. I didn’t think there would be another rout in gold today, but it happened.

As a result, I expect this move will exaggerate to the downside, picking up steam towards the end of the day. If you bought on Friday, refrain from averaging down here. I will wait to buy once more, then sell on a lucky bounce.

The downside to the metals is significant, considering where they’ve come from. It appears the core holders have lost faith, which has resulted in this damage.

Bottom line: Raise cash and hedge. We’re going lower.

Everyone is confused about the sell off in precious metals. Well, put your blue blazers on and let me tell you why it’s dropping.

Gold and silver are retarded and the people who store it in their vaults, moronic. Think about it for more than 10 seconds and I’m sure you’ll agree with me.

But that doesn’t mean we can’t make some money off the blood and tears of others. Every trader worth his salt will be looking for a precious metal reversal today. But it will be a very quick trade, since the space is in liquidation mode.

While in liquidation mode, stocks/commodities can exaggerate to the downside. Think about the people who have physical gold/silver stored in a god damned warehouse in brooklyn and feel sorry for them. What the hell are you gonna do with those gold bars now?

So many central bank haters are getting their faces punched in today. All of the gurus who warned of Zimbabwe-esque inflation have been dispatched with egged faces. There isn’t any inflation worth worrying about. Therefore, as I alluded to in the beginning of this article, gold, silver is retarded.

Nonetheless, I like the miners here for a bounce. This trade expires on Thursday.

Stock market bulls, “champions on the internets”: prepare for a hideous pullback in all indices. Let the slide in precious metals be your crystal ball. This is not an isolated event. We are about to undergo a liquidation in the commodity sector, both gold and silver will liquidate a little more than others.

Yes, it’s true, I am long a lot of AG going into a god damned meatgrinder tomorrow. Am I happy about that?

Yes, I am absolutely riveted by the trading in silver this evening, watching it get its nuts beaten out of it. I’ve also been in New York these last few days, attending to parties and family events–chauffeuring the family back and forth–attending to their whims.

As soon as the market opens tomorrow I will be greeted with “TOTAL MASSACRE” in my silver position, as well as my other small crappers, hedged by cash (which is only 25%) and my HDGE position, which is almost 20% of my book.

I expect to undergo losses and will figure out how to proceed as the day progresses. The knee-jerk thing to do will be to sell AG and chalk it up as a “stupid idea.” But I’m not so sure the miners will drop as much as silver is this evening. You might just get a mean reversion trade, with investors betting on a capitulatory bottom.

We all know this is wishful thinking. The God damned bottom is gonna drop out of the miners tomorrow and I will get to enjoy its splendour in full bloom.

I am a firm believer in mean reversion, the proverbial rubber band stretching too far and then snapping. As you know, for fundamental reasons, as well as philosophical, I’ve been a vocal bear on precious metals, having just closed out a short position in AG. Prefacing those beliefs at the forefront, I can tell you that silver, as well as gold, have indeud breached the outer stress bands and might be due for a bounce, perhaps a very big one.

Using my algorithms inside The PPT, which specializes in finding mean reversion plays, silver and gold are being flagged as being OVERSOLD and the inverse ETFs being OVERBOUGHT. Before I show you the statistics, just know that I am not a fool and understand that mathematical models are meant to be broken, when speaking of statistics and correlations. So, I enter this long AG trade, which is now my largest position, with eyes wide open and a bias against it.

UGLD

GLL

Gold Oversold

Silver Oversold

And GLD

Based upon what the algos are telling me, this trade should be profitable within 3 trading days, peaking out in 7. It’s also worth noting that this trade is contingent upon silver remaining down today, therefore allowing the Overbought and Oversold indicators to register on a closing basis.

Technical scores are in a state of constant flux, ranked on 5 core principles.

All categories are ranked on a scale from 1-5, 5 being the highest/best score possible. There are other factors that are built into the scores, which are not seen here. We like to call them “Sub Rosa” and “Sixth Column” factors, that include price fluctuations in all major currencies, commodities and bonds. We’ve tried to fine tune the scores based on historical precedence, all to do with correlation. However, eventually, correlations become unreliable, as time and news events change the trading paradigm.

We’ve adjusted for this by allowing our algorithms to “reset” every 3,6 and, 12 months–which accent our core historical algos. This might sound a little complex, but it isn’t.

It’s a tool that helps me survey the market from a high perch, find things that are hidden that I would most certainly miss if doing it manually.

I am giving this AG trade until next Friday to yield 5-10% on my money.

I covered my short in AG the other day and now I am going long, under $13.88.

I bought a decent amount with some of my 40% cash, in for the Costanza trade, mean reversion shall have its say, according to the algos inside of The PPT.

Never bet against the Fed. Ever.

With gold and silver down between 4-6%, the miners are getting killed. They are hitting new and fresh 52 week lows, ad hoc. If you’re looking for stocks to short, perhaps the ones above their 52 week highs can offer a target price, something tangible for sellers to sink their fangs into.

I am merely a steward of information, a middle man of sorts, protector of the truth through transparency.

Gold, silver and bitcoins are all undergoing ‘generational tops,’ meaning they will never reach new highs during this era. If you are waiting for gold to eclipse $2,000 or silver $45, you will be waiting until the year 2035, if not longer.

Again, this isn’t my opinion, per se, but facts on the ground.

Precious metals should be avoided, like hookers in the south of bronx. Miners should be sold short, but not on gap down days. Sell the rips short and avoid the temptation of buying any dips–due to the severity of the erosion in the space.

As for bitcoins: they’re now trading $65-75, which is still $65-75 too expensive.

Let me know if I left anyone out.

Here are the choices:

Coal
Natural gas
Nuclear
Apple
Shippers
Steel
Aluminum
Silver
Bitcoins
Gold
Chinese stocks
Solar

I’m mixed on this question due to my overall bearish opinion on stocks. However, if forced to choose, I’d have to go with shippers, thanks to the upside potential and unsustainably low rates that currently plague the industry.

What are your goals– as it pertains to this business? Get rich quick?

Not for me.

I want to be like Carl “I’ll take three seats on your board, and you’re fired” Icahn. Some are put off by his abrasive demeanor; but that’s a breath of fresh air for me, a kid from brooklyn growing up playing inside of sewers.

He started from nothing and is now worth $18 billion. He creates real value for shareholders in the companies he bullies around. The CEOs and CFOs should fear Carl’s wrath, not us shareholders, investors who are looking to bank a little coin. He will twist their heads off, have their jobs, and sell their companies to the highest bidder. Short sellers, like Bill Ackman, should fear Carl too, as he’s very old, very rich and especially belligerent.

Some people like to call him an idiot because he has a New York accent. The man graduated from Princeton, a philosopher no less. Should we deride a great man, such as Carl, because of his major during college?

I believe his philosophy is to break the backs of those who bet against him, is it not? There’s nothing shameful about that.

iBankCoin is a proud supporter of The House of Icahn, the Frank Sinatra, Chairman of the Board, of this finance racket

We sincerely hope Carl becomes a vampire and lives for another thousand years, menacing those who get in his way of financial dominance.

Heck, the guy even does a mean stand up comedy routine.

NOTE: I was +1.25% today–thanks to GTAT and FRO.