For the love of God

12:06 pm (Hawaii) As much as it may seem right to hold through any correction, any further dip in stocks and precious metals and other commodities, if you aren't bullish short term — if you don't have the gumption to hang on through a downswing — and you have severe doubts of a rally later, please do yourself a favor and cut losses. A lot of traders and investors don't care about what happens this week or next. They expect a return to highs this summer or fall or winter. But if you are relying on technical analysis to get through this puppeteer's market (and we are not the people pulling strings), then respond to your gut feeling and get out. You can always get back in with the click of your mouse.

I say this because so many traders are banking on technicals through this completely manipulated market. You know, I could stand at a nearby intersection. Two streets and a major boulevard intersect there. Four main crosswalks, plus the little ones on the corners. PLENTY OF POTENTIAL FOR TROUBLE. But the traffic lights are functional, and if I kept a graph or chart of all the activity by drivers and pedestrians, it would come out with very obvious patterns according to the time of day, the weather, etc.

HOWEVER, it does not mean, even in the most predictable of scenarios at the intersection, that I would stand in the middle of the six lanes of the boulevard at 4 am just assuming that I'll be completely safe because the chart said so. Hell no! I'm not protected there. And in this market, there's no telling when completely-altering news will break about QE3 or no QE3 or anything global. Then it would be like jaywalking, not running, across the intersection during peak traffic. You be dead, suckah. (Unless you protect yourself via puts.)

So please, mind the technicals for the short term. Turd Ferguson is brilliant at that when it comes to Spot Gold, Spot Silver and the Dollar (aka POSX). But longer term, say beyond two days, this is not your ordinary intersection. The puppeteers are looking to hit and run your ass and mine.

EXTREME CAUTION is mandatory, friends. 100% cash here.

Turd Ferguson: Hourly July Silver chart (May 17 2011)
WSJ: China sold treasurys again in March (May 16 2011)