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The Blood Bath Phase of the Crash Has Begun

Precious metals aren't going to bottom until stocks are pretty close to the bottom, and I'm going to say that stocks aren't even close yet. We are probably going to have some 70- to 100-point down days in the S&P between now and the end of next week. 

Metals are setting up for the buy of the year, but you have to be ready to pull the trigger when we get the signal that the bottom is in. Hopefully most people have listened to me and they are out of their stocks, because we aren't done yet.

I think we're entering a blood bath phase: five to seven days of all-out panic selling. Generally speaking, at the beginning of a blood bath phase, traders start to convince themselves the market is oversold and it can't go any lower, and that's about the time that the panic selling and the blood bath begins in earnest, and the price drops so far below what anybody predicted. They don't predict anything close to what generally happens in a blood bath phase.

You never want to try to pick a bottom in these things. You want to get an indication that the bottom has come and that the turn is in. You want to buy after the turn has come, not pre-maturely. 

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