Newsletter Reviews

Inside The Surprise Zone

Inside The Surprise Zone

Author: Stewart Thomson

Posted: February 21, 2012

1. Most of you believe that a time machine is a theoretical device. You might like to be able to buy gold at $250 an ounce today, but without a time machine your dream cannot come true.
2. I’ve created a real time machine. It really works, and you can use it to buy gold at $250 an ounce today. To use my time machine, please click here now.
3. You can’t go back in time and buy gold at its point of maximum price sale, but you can look at other major markets and understand the emotional strength required to buy them during similar price sales.
4. Oil bottomed at $10, while the major news media told you that the oil supply glut was “here to stay”. Now they are telling you the same thing about natural gas.
5. When gold bottomed at $250, it didn’t feel like a bottom, to put it mildly. It felt like gold was going straight to $100-$150. Drawing arrows to infinity on the gold price charts after a $200 rally isn’t how you build real wealth. You must buy markets that are dominated by supply gluts, extremely low prices, and investors in capitulation mode.
6. In the natural gas market, I’d like you to look carefully at the current change in relative strength (RSI), the change in MACD, and most of all, the change in volume.
7. From current prices near $1740, gold needs to skyrocket to about $3100 to make you an 80% profit. Natural gas needs only to rise to $4.50 to do the same thing.
8. The last time gold showed any kind of serious price sale was in the $1500-$1600 price zone, and the sad truth is that most investors sold out or became terribly demoralized as those prices happened. Sadly, the great gold sale had almost no buyers amongst gold’s biggest fans.
9. More gold sales will occur. Have the patience to wait for them, rather than drawing arrows to zero on the Dow chart and arrows to infinity on the gold chart. Those arrows won’t build you any wealth.
10. You can’t know if $2.45 is the bottom for natural gas. The changes in RSI, MACD, and volume could not have been predicted to occur when they did. Carry some short positions while building a net long position in this mighty asset, so you don’t lose your sanity if a new round of lower prices is yet to come.
11. Wealth is built by buying assets in what I refer to as the “surprise zone”, or the “discomfort zone”. The surprise zone is the lower price area on the price grid that you “know” your asset can never touch. In contrast, most investors use prediction to buy assets. Use your own failure to predict an asset higher, to buy it lower. My largest buys of a major asset are always triggered inside of my personal surprise zone. I buy my own stupidity. Should you buy yours?
12. Remember when I came on the gold community scene during the October, 2008 carnage? While most investors were selling out of the stock market and shorting it, I bought Dow stocks into the tick lows, while literally holding my stomach. At the same time, I was maniacally withdrawing money from banks on a weekly basis.
13. It was clear that either the Dow and gold stocks were at a major bottom, or the markets were going to close down and the financial system would collapse. I had no clue which outcome would prevail. I bet on both outcomes by removing cash from the system, storing gold, and buying the Dow and gold stocks with my pyramid generator.
14. I was absolutely sure that General Electric was going bankrupt, yet I bought it anyways. The market turned at my point of maximum pain, not my turn call, and the same thing is likely happening now in natural gas. I have no idea whether $2.45 turns out to be the final bottom, but it is certainly a price where risk capital needs to be placed into this superb asset.

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