Fear is the key element to control. Panic, induced by fear, generates selling. Bouts of intense selling keep buyers disorganized just enough to prevent physical demand from overwhelming paper supply and maintain confidence in the old paradigm a little longer. Investors that recognize TA and money flows extremes, or what traders often refer to as recognizing and buying "Blood In The Streets" survive and prosper despite ruthless, organized takedowns.
COT money flows in the coming weeks should confirm and quantify the extreme nature of the current decline in gold, silver, and equity related plays.
A Technical Look "Blood In The Streets" .......
http://edegrootinsights.blogspot.com/2011/09/is-there-blood-in-streets.html
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As a rule, extreme or “blood in the streets” tend to precede major inflection points. This, however, is usually recognized well after the fact by the public. Don't expect the organized takedown to subside until Thursday's option expiration passes.