Planning The Attack – The Power Of Cash

Being 100% in cash is one of the best feelings a trader can have. You’ve reduced your risk to absolutely zero and have effectively “brought the soldiers home” – now free to do any number of things. You can choose to take a break – if that’s whats needed. You can regroup / step back and take a new look at the field. You can heal (if by chance your last battle has left the troops – how shall we say….”defeated”?) – or you can use the opportunity to do what I always do. What I always do!

Plan the next attack.

There is no room for complacency anymore. The times of making an investment decision and “checkin on it next month” are well behind us now – anyone suggesting otherwise is a complete and total fool. If investing is a battle – then we are at war every single minute of every single day, for the rest of  our god given lives – period. Accept it….deal with it – own it.

My plan (oh yes – you guessed it) is to get on the offensive, mobilize the troops and “take it to em” with everything I’ve got. You see……the enemy has already shown it’s hand. Giant “printing presses” now in place along the lines. Aimed at the sky with such power and might as to “rain down dollars” on the innocent children and families below.

The plan is flawed. And the spoils of war will soon go to those who have found ways to move quickly through the trenches, stay nimble, alert – and attack when given opportunity.

I plan to get ridiculously short the dollar in coming days – and expect and equally powerful move upward in all asset classes – as the “rain of dollars” floods markets and trenches alike….

What’s your plan?


(Seriously everyone – lets try to get in here this week and contribute – good or bad etc……lets hear what everybody’s thinking – It says “leave a reply” so……LEAVE ONE!)

12 Responses

  1. kreks November 25, 2012 / 3:21 pm

    Well I’m planning on holding onto my short-term silver long a day or two more. I got into the trade mid last week and didn’t really expect it to pop like it did Friday (I’m actually kinda bummed I missed putting on more, but I was fast asleep when it all happened… Trading from Melbourne sucks sometimes).

    I’d be surprised not to see a little follow through of momentum Monday, but with equities so short-term overbought and the DX about to tag 80, I agree that we should get some consolidation / pull back mid week. At that point I will “assemble the soldiers” for the next setup.

    Have a good week!

    • Forex Kong November 25, 2012 / 4:47 pm

      I bet you could hold that long silver play through next week Krek – and then be off to the races – but…..take it as you see it.

      I trade from Mexico and at times – it sucks from here too…damn forex markets. Sounds like you are right on track – and will likely do well in coming days.

  2. hf November 25, 2012 / 4:43 pm

    I am 2 % invested (including my GDX calls) so will watch and wait and learn from those on the threads. My thought is maybe to add GLD on a down day (if and when) and try to flip it.

    • Forex Kong November 25, 2012 / 4:49 pm

      If you’ve got cash sitting in reserve – you are the king. Adding to gold here on any weakness is lookin good to me too – pending you can stay on board. Make sure to watch any over leveraged plays everyone!

      Go easy make nice right?

  3. Ben November 25, 2012 / 8:28 pm

    Holding GDX and NUGT calls over here. I’m still trying to understand the relationship between the miners indices and GLD. Sometimes they’re in unison, and sometimes they go different ways.

    • Forex Kong November 25, 2012 / 9:10 pm

      Ben….lets pull it apart in greater detail over the coming week….but in general – gld tracks the price of “physical gold”…ie price per ounce. The GDX etf is comprised of a collection of “mining companies” – and in turn tracks the overall performance of those companies specifically.

      Gold could sky rocket….but what if mining costs / other paramenters inhibit profits?….the miners could most certainly suffer – regarldess of the price of gold no?

  4. schmederling November 25, 2012 / 10:16 pm

    I have never been a fan of miners – there is an old saying ” at the top of every hole there is a liar” I know many involved in the PM sector are positioned for miners to go higher and outperform the base metal. This could be very true – they are undervalued & have been for some time & have generally underperformed historically Perhaps now is there time to shine – I do hold positions but and diversified – I have had the most success in silver – although the little brother is highly volatile and requires steady nerves especially with leverage. I have found however it also provides excellent returns & will continue to own the majority of my PF.

    • kreks November 25, 2012 / 11:10 pm

      I agree… why bother with miners when you can trade gold in a liquid 24-hour market?!

  5. DojiTrader November 26, 2012 / 2:23 am

    Hi FK, so you think the pull back in silver & gold will be shallow this week? maybe just enough to kiss the 50dma goodbye? (for gold; $1735, but slope = neg, or back to the 23% FIB or $1730? – and for silver these are: $32.92 for 50dma (almost flat) or $33.08 for 23% FIB?) – but not more than that?

    • Forex Kong November 26, 2012 / 7:47 am


      Im not really one for such “exact predictions” but in checking out the levels mentioned in the charts…it sure looks about right. I think the point being – we’ve seen the ugly sell off / last ditch in the PM’s – and whatever “dips” come next – should be bareable.

  6. Timeseller November 26, 2012 / 8:21 pm

    Have not seen silver act this solid for about a year. Surprises in a bull market mostly to the upside.Trying to exit to get in front of a three or four day pullback has cost me money on more occasions than not. Think I will just stay long.

    • Forex Kong November 26, 2012 / 11:02 pm


      I am pretty sure holding long PM’s through and then beyond should be no problem at all ( as I too am holding GDX, NUGT , EXK etc…) You are 100% correct in your view of strength in silver.

      Im in and out of the currencies – but am holding all Pm’s.

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