[rocketman]

I almost did it.

I was ready to jump into the fire yesterday thinking there was a new rally for gold. I got all my ducks lined up for this morning’s market – then wham! Right into the water! Gold sinks like a rock. Thank God I didn’t follow through. I am so impatient waiting for a breakout – then this afternoon the Zeal Speculator arrived. Now I can relax a bit. Zeal tells us to be patient – maybe 2 more months. I can’t take it, but I’m going to have to move everything into a market account and just sit tight.

[rocketman]

25% 35% 50% 75% ????

As soon as things turn around and Big Ass Mae gets around to strenghthing requirements for qualifying, lets say… verifiable income and debt to income ratio = < 30%. Then I will buy. Because at that time, I will qualify for a $250 - $350k 3 bedroom house in a nice neighborhood with excellent schools with 20% down and a 6-7% int 25 loan and pay what I can afford... around $2,500 (incl tax,insurance) per month (with an income over $100k). So I don't place a percentage on how far the market will fall, only what I see is realistic for working class families to afford. If that doesn't happen then I'll be renting the rest of my life. I believe that's how far the market will fall. Graph that!

[rocketman]

Even though I’m not a great contributor like most of you, if I can arrange it, I’ll hitch hike down from SF.

Oh, and save me a T-Shirt.

[rocketman]

Interesting New Article on Foreclosures this morning:

Link to Article

[rocketman]

Short on Advice… I started doing a hypothetical portfolio on short trades using the short trades that most everyone recommended on this blog starting 8/31/06. I shorted 100 shares of the following stocks with the begin price and the present profit as of today 9/13:

Stock   Paid   Current   $Gain   %Gain
CTX   49.01   51.76   -275.00   -5.61%
FED   50.00   53.24   -324.00   -6.48
HD   34.17   37.17   -300.00   -8.78
LEND   31.94   35.49   -355.00   -11.11
LOW   26.37   28.96   -259.00   -9.82
PHM   29.95   31.11   -186.00   -6.36
WM   42.40   42.26   14.00    0.33

So if I were to have taken all the "Short" advice given to me on this website starting on 8/31, I would have invested -$27,999.00 and lost $1,685.00 (on margin so add another 9%).

[rocketman]

I just became a subscriber to Zeal since I just want to focus on PM and Oil right now. If I wanted to play all the sectors I’d be glued to Mad Dog Jim Cramer. When it comes to investing my bucks into anything I do the research. If Hamilton or anyone recommends a buy I check it out thoroughly.

Your right about Zeal making it big during the up swings and that’s what I like. I am side lined right now waiting for the next big UP and I know Zeal will give me the “heads-up” when things are about to turn. That’s what Zeal’s there for. I don’t keep my ear to the track all day and night for that sound – Hamilton does. That’s why people subscribe to the newsletter.

Powayseller– May I recommend a book called “Beginner’s Short Term Trading” by Toni Turner. If you read this book and do the questions at the end of each chapter, you will be very confident at trading long and short by the time you finish the book. She is a very good teacher, easy to read and very funny.

As a side note – can anyone move Yellen to So. California? She’s embarrassing up here in SF.

[rocketman]

I prefer to use Snagit by Techsmith Link for transfering any image off your desktop to a .jpg file (charts, excel files, etc). I’ve used it here on several posts. You can even capture video. I recommend it very highly. There is a Trial copy you can download.

[rocketman]

Why short LEND when there’s better money to be made in other places. The market is going to rally this fall and who wants to see their profits go up and down till Spring? It’s best to wait till you see the Fed increase another 1/4 point before you short this one. The damage has already been done. Your too late.

[rocketman]

Hi there neighbor…

You know, after reading this blog and watching RE in San Diego… well, we might just end up moving down there ourselves after this bubble pans out. Do you think there will be any nice 3 bedroom condo’s with a dock and view in a nice marina for let’s say… $300k? Look for the next big boom to hit SD first. Have a nice BBQ weekend!

[rocketman]

Good Point….

However, if they [Iran] want to play really nasty you know – to show The Cowboy they mean business…how about a little target practice in the Strait of Hormuz? You know, the tiny little pass which 90% of Gulf Oil passes through? Wouldn’t that be nice during election time?

[rocketman]

Short term = Oil

I am going into undervalued oil stocks until the PM’s make the necessary corrections and start upward. I like basketball because the game moves fast, I can’t stand baseball but will go to a game and enjoy the crowd.

I am starting to find PM’s fascinating and I am trying to learn as much as I can before the next rally. One thing is for sure, I am listenting to the experts Chris J, Zeal. Even as I am watching the HUI move up this week – it’s tempting to jump in but the pros say the indicators are not there yet. So I’m going to play oil – especially since hurricane season isn’t over yet and Iran is misbehaving (at least for the Bushed admin).

[rocketman]

Just speculating but..What if…

What if the US Government decides to bail itself out of a US$3 trillion dollar debt. What if they decide to start BUYING gold to start another speculation bubble? What if gold reaches > US$2k? What if the US started to sell off some of its reserves after this increase? What did the US government do with 9 tons of missing gold from its reserves 1974 – 2005 (which is unaccounted for). Did the US government step in to save the economy from the LTCM default?

Do you think the US Government is capable of that?… If so were in for a NEW GOLD RUSH.

[rocketman]

Thanks for the clarification Chris. Your newsletter is very professional and informative. Yes, the dollar appears not to be the only factor. I will be keeping my eye on inflation. I think the article I was posting had to do with how investors are starting to head out of risk and into safe mode. If I am not mistaken, this looks like a gradual set-up for a new sector of investments (precious metals and gold). However, I see a lot of news from the metals sector advocating gold and they have to make a living too :-). So who are you going to believe nowadays?

I’ve never seen anything like these times for investing. It used to be KISS – now everything is too unpredictable and you got to pay major attention. Thanks again Chris.

[rocketman]

I think we need a group hug here…

Stay in touch powayseller, you’re one person I related to the most on this blog.

Thanks!

-rocketman

[rocketman]

I came across this article this morning I thought was interesting. It seems more investors are pulling out of small caps in lieu of large cap stocks for safety reasons Link to article .

I have been wondering why gold is not in as much demand I think it should be lately. One thought is that Global Bankers are selling as much gold as people out there are buying – trying to keep things from unraveling. I'm not sure how long they can last.

Another idea is that the dollar is still strong and so the psychology to buy is not there yet. Look what happened to the Yen today. It&#39;s hard to argue when you see the Yen fall against the dollar so sharply. However Chris J points out there is not much correlation between the dollar and gold.

I like the article PS. Thanks. One stock advisor I have been checking out lately is Gorilla Trading . I bought a monthly membership for $59.00 / $499.00 a month/year and the Gorilla advises on longs and shorts. I think I'd rather be using this service in a more Bull market – but he does advise on shorts as well.

If anyone has any feedback on The Gorilla I'd like to hear it.

Thanks!

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