Wealth Preservation Mode

I think an update is due for everyone. Times are unprecedented and markets are very dangerous.

I'm sure you are all well aware news is unfolding regarding the potentially six nuclear meltdowns in Japan now, faster than you can really keep up with. The reality is it's surely much worse than is being let on at the moment.

The devastation from the tsunami alone is staggering and the death toll sure to rise to well to over 50,000 souls and it wouldn't surprise me in the least to see it closer to 100,00 once all is said and done.

Here is a heart-wrenching presentation with before and after pictures. Whatever issues we deal with on a day to day basis pale in comparison. Imagine your whole town wiped out in minutes as occurred to so many in Japan.

This latest crisis is veiling what is occurring in the middle east which in and of itself is a market moving event. Four journalist have in fact just been reported missing in Libya.

So what should we do with our investments now as they are being pummelled?

That is the question filling my inbox these days the most.

We have advocated that cash is a position many times in the past, and now even more-so. It's a case of sell first, ask questions later.

We've sold all our swing trading positions with the exception of a few short positions and are now looking for bottoms so we can add to our mining portfolio.

Everything, even commodities, is getting hit very hard so far this week and it's likely to continue if/as news gets worse.

There are going to be very good buying opportunities to come in the days and weeks ahead and you have to be ready.

Let's take a quick look at some of the hardest hit areas that we like to focus on.

The S&P500 index is in a falling trend and just recently tested another level of support. It's ugly and could easily get much uglier. It's now lost all it's gains for the year and is now negative.

I've had a target of 1,440 since late November 2010 on this index after it broke out of a cup and handle pattern, and that may be hit eventually but the cup and handle target is now annulled.

Markets hate uncertainty and we've rarely ever experienced this much uncertainty. Stay away from any type of trading unless you have solid rules.

I'm not even going to show any precious metals charts. If you're trading them you should have been out of them long ago or you have no business trading. Taking losses is part of trading and must be welcomed.

As for physical metals, if you own your allotment, then go do something else. Don't worry.

If you are looking to buy or add, use this weakness wisely.

Selling has to occur as investors are raising cash due to margin calls, or simply as a consequence of having the pants scared off them.