Morning Pic et al:

As you point out, the next week or so, up to about the time Armstrong calls for a beginnng in the turn of the markets, could be at least sideways and I suspect down for gold and the stocks. Jim Sinclair expects possible "dirty tricks" from the naked shorters as they try to exit their positions over the next few months...hence the warning to us all not to have any margin. He sites RGLD as a good example of what might happen. Aslo, I got a testy reply from Jon Nadler after prodding him on his credibility and his calls on gold for the last several years: "see you at $650" was part of his response. From that it appears to me he has some direction from "someone" that makes him cocky enough to mention a $650 bottom. Sounds crazy to me, but then again Gartma and others seem to be signalling the short term demise of gld.

Could it be that they are pulling out all stops on behalf of their "clan" hoping there is enough ammo ( contracts) left with the likes of JP Organ and HSBS to make one final paper slam of the PMs? Will they succeed in trashing gold down to the $800 t $650 level for a very short time before it explodes back over $1033? It will be interesting to see what happens and if they can indeed succeed...and what affect it maqy have o the JPMs.

So, we should really watch for the next week or more and then be wary of the turmoil from the nasty nakeds venting their spleen. It all becomes very dicy for those who await the next upturn in gold as it punches through $1033 on its way to the 1100-1200 mark...Armstrong estimates around Sept. when gold will seek its support level. Once there he predicts a rise to $2500-$5000 into the 2010 area.

I am thinking this will finally be the last chance to buy ECU at such fire sale prices. I can't imagine what will happen to this stock if silver suddenly explodes and heads for $20 plus. The leverage to the upside is unbelieveable.

Watch the margin stuff folks.