When to own gold vs. when to own paper assets

Graph is self explanatory

Bought into Euro call option

Bought $46 strike FXE (euro ETF) call options expiring September '11. Euro broke out of wedge pattern today (7/26/11)

USD oscillating. Watch for breakout or breakdown

Bridgewater Associates Ray Dalio quote

“It’s always a matter of controlling risk. Risky things are not in themselves risky if you understand them and control them. If you do it randomly and you are sloppy about it, it can be very risky.”- Ray Dalio, Bridgewater Associates Hedge Fund

Gold consolidation and explosion patterns over last 7 years

Pattern repeats continually. Internal energy buildup is reflected in the jagged sideways movements (boxed areas) and is followed by the next leg up.

Silver call options

Bought some SLV calls expiring January 2012 with $45 strike today. Pattern looks like a firm bottom with strong possibility of an up-move

Bert Seligman words of wisdom

“Men who can be both right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make the big money.”- Bert Seligman

Clorox- Classic example of a breakout through firm ceiling

A three year ceiling at $60 resulted in a sharp breakout propelling CLX from 60 to 75 in just over a year

GDX and GDXJ consolidation

Consolidations and base-building like this have generally been a precursor to a breakout move. The most recent base-building, in relation to the prior one, is long and drawn out, which typically would signify a very strong breakout when it happens.

Bought back into silver, gold, senior and junior miners yesterday 7/12/11

A turnaround and possible breakout from the consolidation seems very possible.

Shanghai Composite- break of 5 year support will be significant

HUI index possibly turning around, bouncing off firm support

Gold uptrend October 2008 channel intact