How many investors, motivated largely by fear and highly motivated misinformation campaign, dumped their gold and silver positions last week? The oscillation between the extremes of greed and fear will repeat over and over regardless of how many times Jim pleas for balance of mind, body, and spirit. He's absolutely right. This is why he's a dangerous trader. Truth is, only a select few that learn to profit from secular trends ever achieve balance in an unbalanced world.

Gold was first to record seismic activity that warned of an impending price eruption in 2008. Gold's rumblings were soon followed by seismic activity in silver. The same pattern is unfolding in 2012, yet few investors/traders remain balanced enough to see through the fear. This is why the invisible hand controls the game.

Chart 1: Gold London P.M Fixed and Long/Short Concentration Index (CI): 1 = Bullish Setup, -1 = Bearish Setup


Chart 2: Silver ETF (Silver) and the Silver Long/Short Concentration Index (CI): 1 = Bullish Setup, -1 = Bearish Setup

How investors are dumping gold and silver to chase bonds higher? The invisible hand is smiling behind the curtain right now.

Chart 3: US Treasury Bond 20YR+ (TLT) And US Treasury Bond Diffusion Index (DI)

http://edegrootinsights.blogspot.fr/2012/05/prusuit-of-balance-in-and-unbalanced.html