Graceland Updates 4am-7am
Email: s2p3t4@sympatico.ca
Oct 29, 2009
1. It’s raining money! While the world’s worst traders hold hands and make another huge effort to trade their way out of a wet paper bag, I’d like to call your attention to the reason that bag is soaking wet:
2. Because it is raining money. Money is raining down on these idiots and they don’t even know it. Because they are INSIDE the bag. You got $45 in free money if you bought an ounce of gold if you bought yesterday at the $1025 lows, instead of the 1070 highs. Read the supposed genius top callers’ writing very slowly and carefully as gold moved into the 1070 area. Then go back and read what they said at 905. You will find: The Truth. The truth is they turned bullish into 1070. And the truth is they were gold doubting Thomases bailing like there was no tomorrow into 905. These lifetime market losers are correct about one thing:
3. There is no tomorrow. The sixty minute chart on gold is already oversold: Gold 60 Minute Chart Via SGOL ETF Proxy [See Money Flow Index (MFI) at bottom.]
4. RSI is oversold, Williams is oversold I’m sorry to say that if you buy an ounce of gold today at 1035, you only receive $35 of free money. Gold has said goodbye to 1025. And hello to 1035.
5. As gold moved into 1070, the euphoria that swept the gold market showed itself in the bears who had stayed bearish and called gold’s rise to ONLY $1070 during the greatest crisis in world history a BUBBLE. For a brief instant into the actual 1070 high, they almost ALL turned bullish. Read them carefully. It is there in writing, their real thoughts.
6. Do know how ridiculous calling gold $1000 a bubble is? The thousand trillion dollars in mangled OTC derivatives isn’t gone. It’s HIDDEN. The head of the Bank of England now admits ALL the banks were within HOURS of closing. The situation now is WORSE than it was then, but it is being hidden via the replacement of marked to market accounting with MARKED TO LIES. Gold trading at $1000 in response to the DESTRUCTION of Pakistan as a NATION, the END of the American EMPIRE, the END of the US dollar as MAJOR reserve currency of the WORLD, the IMPLOSION of the world economy, and the GREATEST MONEY PRINTING EXTRAVAGANZA IN US HISTORY, the INDUSTRIAL REVOLUTION OF CHINA (AND INDIA!) while the public meets in hotel rooms to sell their gold jewellery, the ONLY gold they own, at a 30% markdown, to a glorifed pawn shop called cash-for-idiots….THAT defines a BUBBLE? I respectfully ask the gold bears what planet they are living on because it SURE isn’t EARTH. Attention all gold bears: Go bury your head. Hide in the jewellery production number and coming mine supply sandbox. My cat needs a new litterbox anyways, I’ll have her join you there. At least you’ll have some company.
7. Back in the real world: As I bought the US dollar over the past month and sold SOME gold into 1070, I got a number of emails asking what I was doing. As I rang my USD cash register machine gun style over the past couple of days, here’s what the emails say now: “What about the $130 billion Tbond auction, isn’t that dollar bullish?” “What about the coming G20 and FOMC meetings, that’s dollar bullish right, maybe I should sell gold and buy the dollar?” Team cycle theory isn’t being left out of the (clown) act either. They are lined up in their own wet paper bag. It’s a street fight to see who will be the first to break out and claim they called the day of the dollar low.
8. While booking zero dollars in real profit on any real USD longs.
9. The market is about action. Not talk. Speaking of action, here’s some more: I was a buyer of gold and gold stock yesterday. The GDX, the gold stocks index, has gone has moved towards oversold basis the RSI indicator on the daily chart. Click here now, to break out of your gold paper bag: GDX DAILY CHART
10. RSI is near 30, Williams is below 80, the 14,3,3 Stochastics series is into an oversold condition, and the macd has dropped nicely lower. Price is into the lower keltner demand line. Not to mention the “minor detail”… that the PRICE of GDX itself has just fallen 16%! Some juniors have sold down 25% and 30%, and all I’m seeing is: a competition amongst wet noodles to see who can wear the biggest “I’m a bull but I’m buying nothing” hat. From what I can tell, it’s a tie. YOUR stock falls 25% and you buy ZERO? My suggestion: change that gold alarm clock you set to midnite, try to get up by at least noon. The road to becoming the golden early bird starts with permanently ending your actions as a GOLD WORM.
11. As a professional, you will ALWAYS feel you are “travelling light” into powerful gold strength, and always feel you bought too much into gold weakness. Because by definition you are a strong seller into strong strength and a strong buyer into strong weakness.
12. Because you are also a human being by definition, as price moves you will feel greed and fear like anyone else. Those feelings lessen with each successful campaign in the market, but they never go away. The key is to allocate both your total risk capital and the myriad of individual buy and sell points professionally, so the level of greed and fear NEVER takes control of your market ACTIONS.
13. I have my fireplace going. I’d like to ask all readers to send me all the gold bear write-ups they can find. I’ve got some here and I have 1000 sheets of paper in my printer. I have all the relatives over, the kids aged 6 and under. Ready to make paper airplanes. Which bear analysis makes the most perfect flight into my fireplace? Don’t let the kiddies down, Mr. Bear, they are depending on you! ACT in the market. Don’t THINK. Those who tell you to sell gold weakness now are CLOWNS. YOU run a successful BUSINESS. Take THAT STRENGTH and apply it to the MARKET. The market is the PINNACLE of BUSINESS. It is the BIG LEAGUES. If you can’t handle buying weakness in a pyramid formation, you are trading LOGARITHMICALLY TOO BIG and all professionals, lead by the banksters will have a big laugh at your REAL EXPENSE.
14. The bankers built the markets for one reason: To let you work like a slave to build weath and then hand it to them thru your own stupidity, greed, and terror. And boy are they successful! How does that make YOU feel? If you feel the BURN, then CHANGE your ways. Start ACTING as PROFESSIONALLY in the MARKET as you do in BUSINESS. Stop listening to people who LAUGH at gold. They are IMBECILES. Their HEROS are GOLF BALL ADVISORS who the banksters view and USE as TOILET PAPER. Do what the banksters do in the market, or they WILL take ALL you built. This is the GOLD RAPTURE. Gold is the PUNISHER of all greed and all fear in all markets and it is operating in its FULL GLORY right now. Understand this reality.
15. Or BURN.
16. Some market technicians worry that a fall below gold 1020 could open the door to 990. I’m terrified, can I please use the phone and call my mommy? Gold might fall another $35, oh no, not that, not another $35 of free money, get it away from me! Gold just fell $45. You handled that just fine!!! A move to 990 from 1025 is $35. I suggest you not only handle it, but buy more –SLIGHTLY- more, than you bought into 1025, should it occur, AS it occurs. Buy INTO weakness. Not AT IT. There is no POINT to buy at. There is a buy PROCESS, a buy RHYTHM. The sell music is over. We danced to a $165 gold price strength party from $905 while gold land watched and threw tomatoes. Some of you left the dance floor a little early after dancing too aggressively. Fix those errors on this buy campaign. You only have 5 billion more chances to do the repairs. The fundsters’ leveraged positions were burning yesterday into 1025. 990 would mark an EIGHTY dollar fall from the 1070 high. That would turn them into a raging bonfire of forced selling. Question: Should gold fall $80 to 990, at that point would you like to be a margin-called bustout? Or a buyer! The banksters will be buyers. I suggest you do the same!
17. Natural Gas. Tremendous inventories have been built up. (As we approach winter). A similar situation occurred in the sugar market a few years ago. Now there’s a shortage. An inventory glut in a major market is a temporary issue. But you can’t think in terms of micro moves. Picture gold at $400 in 1996. It seemed to have broken out upside from a 3 year consolidation pattern at around $417. But by 1999, 3 years later, it was down to 260. Gas is an asset of wealth, not a playtoy. Click here now to view the Natural Gas Chart: Natural Gas Big Picture Monthly Chart
18. What I see here is a SPECTACULAR technical picture. The crybabies can’t see it as they stumble along with their superleveraged futures trading madness staring into the daily charts. Look at the crossovers on the MACD series, while is moving into the TRIX series. This is a POWERFUL situation but you can’t play “This POINT is the bottom, I know it!”. Many brokers call NG the most VOLATILE commodity, and with GOOD REASON. To make BIG MONEY you need to THINK BIG. As in big spreading out of your buy capital ALL THE WAY TO ZERO.
19. You can’t think in terms of “breakouts” in a situation like Natural Gas. You have to think about: Accumulating Wealth. What investors WANT in the market and what the market is OFFERING are two different realities. John Williams has done a great job with his shadow stats. But turning those stats into MARKET PROFITS involve a lot more than reading those numbers. Betting Natural Gas is about to hyperinflate is like buying gold in 1993 at 325 and betting it will hyperinflate a year. Not smart. Focus on buying gas all the way to zero. Not busting out all the way to zero. Who cares what DAY gas bottoms, I don’t. I don’t even care what YEAR it bottoms. All I care about is: Maintaining my focus, and allocating my capital so if it DID go to zero, that is the ONLY market event that turns me into a loser. All other events build me wealth. Natural Gas WEALTH.
20. Making big money involves a battle to buy inventory gluts into price weakness that seems endless, and then sit in the trench for TIME. Can you spend the 5, 10, 15 years in the market TRENCH to make the big money? Because that is where it is. Not on some gold basher’s latest paper airplane analysis burning in my fireplace. As a personal favour to the bears, I’m going to put the ashes in little glass urns. And put a gold bear label on each one. Then I’m going hand them back to all the gold bears while they parade on the street to entertain the banksters’ kids, a parade that is drawing nearer than they think. Click here now to view some of the MILLIONS of gold bears on parade. Notice how happy they are: Gold Bears Parade
21. Question: Is the parade circa 1933….or 2011?
22. Goldland loves to quote any news release where China buys 1 cent of any commodity. My question is: What ACTION did YOU take? Here’s a look at the Rogers International Commodity Index ETF. Look at that price decline. That is what I term: Free Money. My suggested action for the gold community is: Go Get It! The thing just took a 6% hit. If lettuce dropped 6% in the grocery, would she say, “oh no don’t give me any of that, call me when it doubles!” NO. If you have a hundred dollars to invest in commodities, my view is you might want to consider putting 6 of those to work! 17 of those and all commodities are at zero. That’s not very likely! I suggest you study the word “action”, because that is what makes money here, at THIS price point. Here’s the Rogers Commodity Index ETF daily chart: RJI Daily Chart
23. Notice the technical indicators are coming down, but not bottoming. So placing SOME capital to work against SOME price weakness just makes a whole lot of sense. I’d say “common” sense. But it’s only common amongst Grannies in the grocery. A final suggestion: After you throw the gold bear airplanes into the fireplace, take a wander down to the local grocery. And meet a REAL market expert.
24. Gold bear paper airplanes in one hand. Making money professionally in the other. It’s not a hard decision to make. IF you like the word, altogether now….
25. KACHINGO!!!
Cheers
st
Stewart Thomson
Graceland Updates
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Written between 4am-7am. 5-6 issues per week. Emailed at aprox 9am daily.
Graceland Updates.