Graceland Updates 4am-7am

Oct 6 2009

1. George Soros yesterday called the US banking system, “Basically Bankrupt”. He said, “The United States has a long way to go.”

2. The good news is the public has built a special George Soros language translation machine. Their machine translates “basically bankrupt” into “Buy anything the insiders liquidate, pay any price, and do it now!”

3. “A long way to go” is translated by the public to: “The recovery will take 2 more weeks, but windows and orphans should wait 3 weeks before investing all their money in stocks. Gold is going to zero, sell it all on the next hundred dollar decline.”

4. High oil prices are now deemed great news for the stock market. $70 oil was deemed a disaster for the stock market just 2 years ago. Now we’re to believe it is “fantastic news”. All that is left for George Orwell Financial Markets now, is to mandate mark to model accounting. After your stocks drop 90%, your statement will show a 100% gain. Of course, there will be the minor detail that you can’t take out that money, and the banks will use it, for loans to themselves.

5. “And today, marked to model, the Dow soared 50%, and home prices were marked up 40%. Nobody has any food, suicides are pouring in by the hour, but those small problems aside, the recovery continues to beat expectations!” –Bloomberg News, 2012.

6. A bull market takes no bear prisoners. The banksters are long gold. Not short. I’ve been saying this for years and few have listened. They use the comex to book profit against their physical gold and to take your gold. It is some of you in the gold community who are naked short gold, not the banksters. This is madness. There’s nothing wrong with shorting gold, as long as it is against a much larger long position. I sell 2-5% of my gold into $50 to $100 of gold price strength. Not 5000% of my gold, like many in the gold community have done, hoping to “get in cheaper” later. The gold head and shoulders pattern has already broken out upside on the monthly chart. You’ve been told. “As always the Goldman’s of the world will end up the biggest winners long gold. You can bet on that.” – Jim Sinclair, Oct 5, 2009.

7. Dr. Jim Willie has showed “respect” for the massive head and shoulders continuation pattern on gold. So have a few other writers, with the emphasis on “Few”. It will be the Few that make large money on this move in gold.

8. Gold stocks have not come back like bullion has. They will. As gold approaches $1200 the urge to buy gold will become nearly irresistible and I’ll have booked a boatload of profits all the way there. Gold bullion will have many more multi-hundred dollar corrections. But there is almost a “demand” that gold have such a correction now. I want you all to make money. That means a focus on the basics. The most basic thing you can do is the market is respond to price. Let me repeat that: Respond to price. By responding to price, ironically, you are predicting it most accurately.

9. Don’t try to outsmart the banksters. You will fail. There’s a reason why they are trillionaires, while most GCMs (gold community members) will barely break even on their gold stock portfolios even if gold hits $1200 on this move! I’m being swamped with two polar opposite types of emails. The first group is saying, “I’m short gold. The stock market should fall soon and gold should fall, right?” The 2^nd group says, “I’ve recovered a lot of what I lost in gold stocks into last fall’s crash, I should probably buy more now, right?”

10. Regardless of what the market does, both types of thinking are 100% wrong. The amount of capital you apply to your bets is critically important. You can likely salvage a short side bet on gold, provided you have a plan of action in place to add short positions at least to gold $1200. If you are following some broker or writer who is telling you to short gold with a tight stop, with a bunch of futures contracts in a tiny account, I’m sorry, but you are likely going to lose ALL your money. Picture a football field, with each 10 yard line marking of a $50 or $100 move in the gold price. That is the Gold Market. Think big, not small, or the banksters will make you small. You have to accept smaller wins and place smaller bets if you are going to succeed in the gold market. For those of you playing the long side, you also have to think smaller.

11. The public wants out of the stock market. They were terrified in March, and still are nervous, but not afraid anymore. The market memory of the average investor is easily erased by price action. It’s simply a matter of: degree. Do you seriously believe that if the Dow shot several thousand points high next week, the public would still want out? No. They would want IN. Most investors are “price slaves”. The so-called plan of action to lighten up on stk mkt holdings if the Dow rallies higher is currently being replaced with, “well, maybe things are a little better, I’ll just hold on a bit longer”. Another leg up on the Dow will see ten thousands excuses why they didn’t buy at Dow 6500, and twenty thousand more reasons why “it just makes sense to buy now”.

12. I want to give you a clear picture as to why the volatility in the gold market is about to grow incredibly. In the late 1990s, the banksters convinced the public that the stock market was “here to stay”. Most of you were conned by the banksters. Those of you that weren’t weren’t conned on the long side, probably lost money trying to short the Dow from 1995 in a series of failed price plops.

13. What is happening now is a similar situation to what the bankers did with the Dow, but with the US dollar, the world’s largest market. This is their showcase play.

14. Gold is the world’s smallest major market. The bankers, who are massively long gold, are creating a situation where the public is being indoctrinated in the view that the US dollar is finished, a very similar view to the view the banksters created with their “here to stay” stock market of the 1990s. Most importantly, that view is now being pushed, and accepted by, institutional money. It is being accepted because the banksters are really damaging the dollar fundamentally with their money printing games.

15. The key point is that the US dollar bear market is now entering the stage of a publicly recognized and PROMOTED bear market. As of right NOW, you will start to hear from business owner investor acquaintances about the US dollar bear market. These idiots will parrot the Bloomberg stories, nodding their heads up and down, completely ignoring the fact that the dollar is down about 35% from the highs set about 7 yrs ago. NOW these idiots show up and notice there’s a problem with the US dollar? We are in the later, most horrific stage of the US dollar bear market. The stage where the banksters begin buying USD with their infinitely deep pockets, while the institutions and public bail in terror and accelerate their doomed-to-fail leveraged carry trade scheme. Soon the banksters will be selling OTC derivatives on the US buck shorts, collecting, fees and interest before finally burning the thing into the ground via a new gold standard that will end the US dollar short party like a tomato hitting a cement wall., [I love colorful language! -FNC]

16. It’s very important to stay focused on what the charts are indicating and buying gold weakness and selling gold strength only. This is the largest bankster play ever, as they load up on the US dollars sold by the bustout dollar bag holders worldwide who follow the bankster propaganda that the USD is “finished for the long term”.

17. We even have the head of the World Bank calling the USD a sell, NOW, 7 years AFTER the top. Then he says, “by the way, I’ve bankrupted the entire world bank, but I know the USD is now in a bear market, 7 years after the top.”. Gee, I wonder why his bank is worthless. He says what he’s paid to say to create WORLDWIDE panic and hysteria concerning the USD. The banksters are ready for the next stage of profit booking on their giant gold long positions as part of their plan to take over the major holdings of the US dollar.

18. The banksters are looking to create fear in the US dollar market, and they are succeeding tremendously in terms of time and in terms of volume of fear. All it takes is for a tiny portion of the US dollars to make their way towards the gold market, a tiny portion of allocation by the institutions, and you have immediate mindblowing volatility in the gold market. There are hundreds of institutional traders handling vastly more money than that held by all the GCM’s. If you are shorting gold, you must be prepared to handle price moves of $100, even $200 during a single day’s trading.

19. My strongest suggestion if you ARE short gold, is that you move towards trade drastically smaller than you are now. Few investors alive today understand what is coming in the gold market. The gold community has called almost every single top and bottom wrong. There’s one thing not a single person in the gold community has called wrong: The Big Picture. That makes you smarter in many ways that 99% of the world’s largest money managers. Take your credit. It is due.

20. Once the banksters have pointed terrified institutions towards gold, they will then seek to alternate bullish and bearish news to create massive whipsaw action. The banksters’ “grand slam” will be announcing that the “recovery” was in fact a warm-up act for their Trillion Dollar OTCD Main Act. “Otcd” is Over-The-Counter Derivatives. Once the economy is announced to be imploding via a truckload of new multi trillion dollar OTCD failures, the US Dollar bear market will not reverse. It will accelerate at hyperspeed. Gold’s rise will create terror amongst institutional investors that financial Armageddon is upon them. They understand full well what happens to gold if they all charge at it the same time. Many will turn to gold stocks to appear less panicked than they are.

21. The public will not rush in to the “gold rush”. They will be too busy screaming for President Obama to print money to save them from the giant black holes they are sucked into.

22. In the meantime, it is more important that you continue to watch the charts for REAL overbot and oversold conditions. Don’t tell yourself excuses to buy or sell gold when the clear picture on the charts is not what you are pretending it is, what you want it to be.

23. Most critical of all, as this rolls forward, if you want to buy and sell, you must stick to your pyramids. [What he means here, AFAIK, is to arrange many transactions rather than one, because you can't predict an intermediate top or bottom in a cyclical bull (or bear). His pgen you pay for will do the calculations for you. His subscribers get the details.] I’ve heard a million reasons from most of you WHY gold will go up or down for the next leg. Who cares. Place your buys and sells in response to whether it IS up or down. All else will fail you.

24. Silver is up a FULL DOLLAR since Bob Hoye’s ultimate sell signal on the weekend. That’s not a knock on Bob. He’s one of the two top technicians in the gold community. It’s a validation of what I said yesterday: Those sequential sell signals mean a MONSTER move is AT HAND. Either up or down.

25. Picture silver leaping up and down $3,4, $5 a DAY. THAT is coming.

26. Are You Prepared?

Cheers,

Stewart Thomson

Graceland Updates