A 'clue' for 'elephant hunters' when shares 'hit over-bought...

A 'clue' for 'elephant hunters' when shares 'hit over-bought side of the power up channel' from Jim Sinclair http://www.jsmineset.com/home.asp?RQ=EDL,1&ARFG=1&GID=0&linkid=6

Gold
I am receiving word from loyal CIGAs about new tops being called by the gold gizzers on various internet sites. When will they learn that their short span of attention and dedication to trade everything all the time is a self creating prophecy which delivers pain and suffering to the majority of the community? Only 5% of you will at best break even with this trade everything all the time strategy.

We will of course stay disciplined to our trend lines. But you and I for the mostpart are true investors “hunting elephants” and not playing for peanuts in this generational bull market in gold.

We will go to $682 and then to $1,600 as I see it. Why in the world should we care if we sit out a reaction on two-thirds of our position? Do you really believe that these top callers are also going to get you in on the lows or even at all. They double talk to make themselves correct. Our process is simple: We sell 1/3 into strength when the power uptrend breaks down or when gold or gold shares hit the over bought side of the power up channel. If we are wrong we laugh all the way to the bank.

I refuse to trash talk gold because I feel that I know exactly what gold is going to go. Those who trash talk gold are spoilers and dastardly devils seeking to claim the status of geniuses.

“Mad Jack My Money” writes today asking "would you sell one ounce of gold if we got a close under $558?"

My answer is: “You are asking a trading question but here is the answer. If you were long gold futures I would have closed or significantly reduced my position when the power uptrend line broke down on the chart that I published for review. I do not do charting for my health, but to show you how to use simplistic TA on 1/3 positions." I am not here to guide wild-ass specs.

So my definitive answer is if you do not have any borrowed funds in your gold position hit the mute button and forget it. If you have borrowed money but not in a major way simply eliminate you minor borrowing and hit the mute button. If you own cash gold why are you even asking this question?

Another question today dealt with my suggestion that you never meet a margin call. That means you know by simple arithmetic when a call is coming. Before or at that point, liquidate your position so as not to have a call in the first place. Don’t pray but rather run. The fellow asking thought I meant simply do not pay the margin man and hold your position. That's not how it works. If you do not pay, you are sold out anyway - and more than usually at a price which results in you owing the broker money. Do not let that happen!