Graceland Updates 4am-7am

Oct 22, 2009

1. Today is Dow day. I promised I would be “going technical” this week. OK, I’m four days late, but it’s starting. I also want to take you into the MIND of the various groups of investors who are either in the stock and gold markets, or watching them. Because THAT is also needed right now, big time. The stock market is the main arena for most investors, so put in your mouth guard because analysis time is over, it’s time to FIGHT. If you like losing money then don’t read on.

2. Ok, here we go: The Dow. What’s fuelling the rise?

3. Answer: Not Me.

4. Those following me have shorted the Dow from 9000 every 100 points higher in a “range pyramid” up to 11,500. That’s about 11 fills so far out of 25. My Dow Short Program rolls on…

5. Or does it? Yesterday’s Dow Meltorama took place late in the day and completed a nasty little head and shoulders top on the 60 minute chart. It took the Dow down about 200 points from the recent highs very quickly. Click here now to have a look.

Dow head and shoulders 60 min chart

6. That top came after the Dow had oozed out of a rising wedge type of action, if not an action rising wedge chart pattern. Here’s the wedging action:

Dow Rising Wedge Action

7. What HAS fuelled the low-volume Dow rise out of the 6500 level, the forgotten marker of misery? The answer is: Near zero interest rates, printed govt money, huge short covering, some buying in fear of real or potential hyperinflation, bits of institutional money, and laying off of millions of workers, causing profits to rise while revenues melt.

8. Let’s not forget two other bits of “great” stock market news, the MAIN drivers of this rise: The destruction of the nation’s currency. And the marking to the pie in the sky model, of a thousand trillion dollars of worthless garbage otc derivatives contracts. The greatest accounting fraud in world history. Overseen by the board of the Federal Reserve, featuring Dr. Pinocchio and his band of expert accountants. All of THIS has occurred under the watchful eye of the current President of the United States. President George Orwell. Whose greatest achievement so far, is to convince those who have so little money they can’t afford a new car and have to drive a clunker, that they need to borrow money they don’t have, and buy one anyways. I wonder what effect THAT will have on their mortgage payments as we wind down the road….

9. So, the Dow pump and dump roadshow rolls on. The insiders continue to bail, yet somehow the banksters have managed to get the media to believe all of the drivers of the higher Dow, are FANTASTIC news for the ECONOMY, and are focused on telling the public so, on an hourly basis. Vast numbers of writers continue to focus NOT on the fact the insiders and the banksters have sold into strength, NOT on the fact they have made TEN YEARS of Dow returns in SIX MONTHS. I have to apply my bizarre and surreal moniker to their crazed view that those who bought into the pain zone at Dow 6500, including myself, have sold “too early” and “failed” to call any Dow top. Too Early? I book TEN YEARS OF THE DOW’S AVERAGE ANNUAL PERFORMANCE IN A PERIOD OF 6 MONTHS, WHILE STILL HOLDING A CORE INNER POSITION BOUGHT THERE… AND I SOLD TOO EARLY? WHAT PLANET ARE THESE PEOPLE ON!!!

10. The all-out focus is on quoting one price chaser after another as an “expert” as one lemming zombie after another marches forward to buy the Dow after a 3500 point astroblast, one of the largest percentage moves in the shortest time, in the history of the stock market!

11. At the same time, a growing competition has emerged to see who can beat on gold the most, and throw the most amount of their subscribers’ gold in the garbage in the shortest amount of time. “I’m the biggest top caller!” “No, I am!”. It’s gotten to the point that fights are starting to break out amongst the gold top callers, so I have to step in: Calm down, people, there’s enough prizes in the cracker jack box for all of you. I’ve ordered extra boxes, no one will be left out, you have my word. Click here to view the 12 top prizes: Gold Top Calling Awards

12. Making money as a professional isn’t about calling tops or bottoms. It’s not about calling “turns”. It’s about putting the ball in the net consistently. Yes, I’m a seller of gold into strength and into THIS strength. After a $170 rise in the gold price, to quote my bank trader friend, “it would be irresponsible, as a trader, not to book some profit into this kind of price strength”.

13. There’s a saying amongst market “players” which is: You need to have big money on the market risk table to make big money. I agree. But the tactics you use to place that big money require time and patience. Not a heroic single price plop with the heart of a lion the brain of a pea.

14. For those of you playing the silver market, I have an even stronger message for you: You only have 17 dollar pegs to worry about. That’s only 17 battle points. Not a thousand like for gold, or ten thousand like for the Dow. Get in there and announce “I’m in Charge, not some price predictor, it’s me, I RULE this market.” And apply your risk capital so you DO. Those who watched silver tank to $8 and bought nothing are BABIES. Nothing wrong with THAT. What’s wrong is not learning from the experience and repeating it AGAIN. I wouldn’t be writing this letter if I hadn’t been a bigger baby than ALL of you MANY times in the past. I KNOW your mind because I’ve lived it. Be a silver PREDATOR. Not a MARK.

15. Take your analysis buddies and relegate them to a once a month pow wow. The rest of the time, focus on FIGHTING. The market is about beating on your opponent and withstanding the price hits he lays on you. If you can’t take the pain, YOU ARE TRADING TOO BIG.

16. I urge you all to view part 4 of my “Gimme The Juniors Now” video report. I think I’ve done a good job outlining how a professional acts in the Dow and the Gold market, and made it very clear given the market action of why that is the only means to making consistent money in the market. And why I’m VERY comfortable with my positions in the Dow, the US dollar, oil, gold, silver, currencies, as I FLOW in and out of them with a RHYTHM. Today’s letter is not about surviving anything. It’s about VICTORY. GO GET IT. Its is 110% critical that you maintain a POWERFUL focus on being a gold BUYER into any and all weakness. Those focused on the intermediate trend are WEAK. Think about how EASILY I bought the US dollar into weakness while maintaining total focus on the big picture, which is: The Gold Bull Market.

17. Those focused on a possible sell off in gold are WEAK. That is a FACT. I’m focused on GOLD ACCUMULATION on any and all weakness and ALL BEAR THEORIES are FLIES in way of my freight train of ACTION. The MORE theories I hear about WHY gold could fall big, the more I tweak my pyramids on the BUY side in SIZE.

18. Likewise, I’m a shorting MACHINE on the Dow. I turn the machine off at Dow 11,500. As a professional, if the market heads south before then, I don’t make all the money I could have. I rarely do, and when I do call the turn exactly, I realize I didn’t call any top or bottom, what I did was BARELY GET OUT ALIVE. If you short the Dow with one big plop of money at the exact top, you aren’t a great trader. What you did was ALMOST MISS THE TRAIN AND ALMOST GET RUN OVER BY IT. TWO ACTIONS OF STUPIDITY.

19. Those who failed to buy ANY Dow at 6500 but are buying NOW, I’m afraid to say, are 100% market BUSTOUTS. Get with the program: The Dow falls fifty percent and you buy ZERO dollars of what Joe Golf Ball Advisor bragged to his Granny was here to stay for the rest of her life in 1998? What does he really know about markets if that is the case? Answer: ZERO. Now he’s back shooting off his mouth about some recovery that will be fuelled by the destruction of the American dollar and a massively fraudulent valuation of a thousand trillion dollars! If his IQ was any lower it would go negative. Don’t worry, the banksters have plans to put him, and the rest of the gold bashers, on the bread line and close their traps.

20. There’s 11 pegs to the gold market. I’ll count ZERO as one of the pegs. Each $100 an ounce point is a MARKER, a PEG. If gold falls $100 an ounce, my question to you is: How MUCH gold are you going to be buying? ZERO? What are you thinking if that’s the case? More importantly, why are you thinking about ANYTHING except placing your buy orders? Thinking about where gold is going? Forget about where gold is going. It’s going where the banksters want it to go, end of story. Respond to where it goes, when it does. And MAKE MONEY. Go punch a wall and enter your BUY ORDERS and flush the top calling mini men down the toilet. Do it TODAY. Stand up and say, “I’m in control of the gold market, not some top calling worm. Get out of my way, I’m ready for the next $100 fall in gold. And my focus is on some serious Junior Gold Stock Accumulation as it happens!!!”

21. Here’s what one Elliot Wave analyst thinks the gold market must show to prove it is a “real” bull market: “A surge in demand that outpaces supply. A falling stock market, which raises the “safe haven” appeal of precious metals. A real (not imagined) threat of inflation. An increase in value relative to major foreign currencies.”

22. The man doesn’t even MENTION the US dollar! Never mind the otc derivatives nightmare. How can he be taken seriously, in terms of trading gold? Never mind that he’s been saying the same thing since gold $250!!! Gold is trading as a currency with the commodity factor a SIDESHOW. The mine supplies coming on line in a few years and the jewellery situation are just that: A sideshow. And this gold bull’s BIGGEST upmove is more likely to be accompanied by a SOARING stock mkt than a falling one, as soon to be TERRORIZED US dollar holders seek to buy ANYTHING but the bond mkt as Ben Bernanke’s gold revaluation efforts fail to stop the economic WIPEOUT. Therefore he resorts to his final tool: ALL OUT MONEY PRINTING.

23. After all is laid to a wasteland with THAT move, the banksters will finally give the signal to lock the dollar to gold. The commodity balloon (that could see oil at $500) will be pricked and explode.

24. As always, ONLY GOLD WILL EMERGE FROM THE HORROR SHOW UNHARMED AND UNCHANGED IN TERMS OF REAL VALUE. The public idiots will embrace the “supercurrency” and probably gold itself as “here to stay”, while the global currency will really be: “here to be milked and diluted”. By its creators. That’s WHY they are making it.

25. For the banksters, it will be a waiting period, and then on to the next game. Milking the world currency will start out with a gold backing and a million “this time is different” promises, and end like the US dollar is ending now; a diluted hunk of junk. Maybe then the call will be “We need a solar system central bank and currency, these world central banks just can’t be allowed to fail ever again! We have to print the money now, we have to hand the banksters 10 quadrillion, the world bank is too big to fail!” It will be future generations of the gold community that get to watch today’s gold game run by the banksters repeated with the world currency, after they fuel the whole world into an asset and debt price chasing frenzy that they then gleefully pop like a kid’s balloon. And have a big laugh at the daily suicide count in rocket mode. And it will be future generations of the GC that will again hold GOLD beside the banksters, the only two groups to emerge on the profit side of the ledger. The more things change, the more they stay the same.

26. The saying “your enemy is your friend”, when it comes to the MARKET ACTIONS of the gold community and the banksters applies absolutely.

27. By the way, “Stormin Gold Norman” is making great progress wit the Pogen, the Portfolio Generator. He’s a VERY fast learner. As a licensed asset allocator by trade, I’ve asked him to jettison some major principles his industry lives by, and replaced them with pgen
ACTIONS. It’s not easy to just systematically dump certain core beliefs in 30 seconds. Considering what he has to send to the scrap heap, he’s moving at light speed.

See you on the site,

Cheers

Stewart Thomson

Graceland Updates