gold above $400 - sinclair

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    I suspect (reading between the lines)that 'our jim' will open his pockets (with the help of others)& hold gold above $400.

    Tuesday, November 18, 2003, 12:00:00 PM EST

    Important Message to the Gold Community

    Author: Jim Sinclair

    Andy’s Army has met its match. In the gold market, COT from a financial standpoint is a peanut vender compared to the currency crowd.

    COT is an Odd Lot in market terms compared to the currency crowd which turns one trillion real (not derivatives) US dollars each day in the cash currency markets.

    On the metals side, COT can’t fool with this bunch who today is having them for lunch. The combination of the rebirth of inflation and the death of the US dollar has brought the currency crowd into the ultimate currency - gold.

    If you failed to switch or leg forward your December 400 gold Calls do not give them away for pennies. I am going into the maturity long December 400 gold Calls because gold has a great chance of being over $400 this week. I will not give the Comex option geeks the pleasure of taking me out. I intend to take them out.

    This is a war and the opposition, “Andy’s Army,” has just been flanked by superior financial forces - the currency crowd. Andy's normal bearish Monday morning gold elitist ranting is now a sign of weakness and that has set up his COT clients to be overrun.

    The strategy for those with no margin problems is to stand pat and do nothing whatsoever. Those in the Community that were sweating margin last night are the walking wounded.

    To these people, I suggest standing pat for now but lightening up your margin position to manageable levels as the gold market moves smartly higher to and through $400 this week.

    You margin-addicted guys/gals are the vulnerable ones that COT tries to stampede. Therefore, the battle strategy is to be stampede-proof by lightening up margin obligations to manageable levels. Selling into strength never hurts a situation or the Community. It is in fact good for it.

    Chasing prices lower is an act of breaking ranks and running away from the fight. So you margin people must always sell into strength. Use margin to initiate the position if you must, but never ever pyramid up in gold unless you want to be living in a cardboard box, divorced and despised. This time the gold shares are leading the way higher and that is, IMO, a sound and strong sign.

    Watch the currency crowd buy gold off US hours which are the primary hours in which COT tries on Comex Access to bluff the wrong crowd. This time, when the offers of lots of 100s appear, I believe they will be taken up and COT itself will be taken to the cleaners.

    Those of you that have been doing naughty things on Comex Access have actually done naughty things on the Comex in the State of New York too.

    A special email address will be set up for the USD$50,000 in gold coin reward for evidence and testimony leading to the arrest of perps who have attempted to manage the price of gold for the benefit of commercial interests to the detriment of the public.

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