DISTRIBUTION IS GOLDEN!
Why is distribution Golden?
Because distribution is the name of the market process where many of the owners of "very" large positions sell their holdings in preparation for the coming "major" downturn.
Large positions can’t be merely "sold at the Market" without breaking the price. Therefore, very large positions must be sold to the public over time.
It’s not unusual for the investor/financial community to put out stories to the public about the great opportunity that these investments offer for the public. This will temporarily increase buying interest to allow the large investor to sell his shares at the highest possible average price.
Jim Cramer recently admitted as much in an interview by Aaron Task.
In this interview, Jim Cramer explains just how "smart" money sells "dumb" money stocks they want to take profits on.
Before we call for the execution of Jim Cramer and his cohorts, we need to remember that this process has always been true.
For the public to believe that some "guru" is really offering them a free and easy way to make money is absurd. Shame on the public!
And there is evidence of Golden distribution occurring at this very moment!
GOLD is currently undergoing "probable" distribution. Bullion,
the GOLD ETFs, and all major GOLD Stocks have turned their Monthly trends down.
But we see that
Gold is approaching it’s old Monthly Top. The Financial press, and the Gold sites are currently predicting a new high for Gold.
Hmmmm!
Why is everyone so upset with Jim Cramer when all the "experts" who are sponsored by "special interests" doing the same thing?
Distribution for Gold will only be proven by the Gold Market heading into new lows on the Monthly chart, but it’s the most probable move. Gold would have to close into new Monthly Highs to prove that the Bull Market is intact.
In the case of Cash GOLD, that would mean closing the Monthly Chart above $1045/oz.
Gold made it’s Monthly bottom on 8/1999 at $252/oz.
Gold has been in a Bull Market since April of 2002, when it closed above $308/oz.
It’s not really surprising that it has "finally" turned the trend down. But there was no "big" buy Gold message in the media in April of 2002. The "smart" money needed the "talking heads" to shut up when they were buying!
Actually, the Gold charts look very much like the famous ‘
The safest place to sell short" that WD. Gann recommended.
A simple enough process, as the "talking heads" only know
what is given to them by the news services. That is the only thing approved for them to "parrot"
In the "REAL" world, if you had bought a large position in Gold at $252-$350/oz, you would see the "talking heads" in a different way. They
are assisting you in liquidating your position at the highest possible price. You would probably be willing to send the Jim Cramers a bonus check for insuring that you make the maximum profit!
All retailing is done in the same way!
Thomas Jefferson had the following things to says about newspapers.
" Advertisements contain the only truths to be relied on in a newspaper".
"
I do not take a single newspaper, nor read one a month, and I feel myself infinitely the happier for it. "
And best Jefferson quote on newspapers
"The man who reads nothing at all is better educated than the man who reads nothing but newspapers."
Considering all the overhead resistance that must be overcome as the prior buyers who bought GOLD in the low $300s liquidate, the GOLD peddlers have to find a very large amount of new buyers with money (potential bag holders), in a very bad economy. Investors need to remember one simple rule for self-protection
In the famous words of the Goldbug Joseph Granville
"Don't Be A Bag Holder" .
Wayne N Krautkramer
Pitagoras Internacional SA.
Wkrautkram@GMAIL.com
http://onlypill.tripod.com/allaboutgold/
Posted at 11:41 pm by onlypill
