Graceland Updates 4am-7am
Email: s2p3t4@sympatico.ca
Nov 2, 2009
1. The clocks went back an hour in Toronto, just in case you don’t know. Gold is soaring this morning as I write this. 1052 basis Dec. It seems every analyst I read is a long term superbull but “awaiting a correction while holding core positions”.
2. Translation: A bull in talk, a bear in action.
3. The one bear I actually respect is Ron Rosen. While I think he’s dead wrong, at least he’s got the guts to say what he thinks and stick to it. He thinks gold is going down, way down. The rest of the gold sell-outs aren’t fooling me. I know what they have done, and that is: SELL OUT while wearing a gold costume made out of rice paper.
4. The gold rocket has left earth via a breakout from the head and shoulders pattern on the weekly chart. Granted, the rocket is hovering 10 feet above the ground at this point, and could easily ease back down to the ground. And yes, the rocket could blow up.
5. Question: When the Apollo rockets prepared to take off, did any of the astronauts run out of the rocket yelling, “Mommy I’m afraid, the rocket might blow up, I don’t want to be in it!” No. I suggest you keep their MINDSET as YOURS in the GOLD ROCKET.
6. There’s a TV show called “A Thousand Ways To Die”. I’m sending the show all the names of the zillions of gold writers current underneath the rocket arguing over gold’s next $50 move. They will all be vaporized, including the wiener of the 50 bucks contest.
7. If you are not IN the rocket, YOU will be vaporized too. Some of you just BLEW IT with your OWN gold stocks. Watching the market deliver a 30% price GIFT on a number of juniors situations you own last week, but you slapped the gifter in the face. “I don’t want anything 30% on sale, I want to buy it at a 30% mark UP.” Well, your wish will be coming true, don’t worry. Here’s the current picture of Mrs. GDX, the co-pilot of the gold rocket, riding shotgun beside Captain Gold Bullion. Some of you did BUY. Congratulations.
8. I put on my Gold Juniors hat as gold broke out on the weekly gold chart. After watching the gold market for years, after watching the writers go on and on about this exploration deal or that one, I waited. And waited. And waited. Well, now it’s my turn to play in the juniors spotlight. Let’s see how I do. A week after I said the Juniors light is green, Jim “Mr. Big” Sinclair stepped forward and said the same thing.
9. Now, another home run hitter has stepped up to the gold plate. And he has probably just laid down the greatest analysis of the gold market from a fundamental perspective if you are an INVESTOR. If you are a gold PLAYER, stare at PLUTO, because the man who is arguably the greatest trader in the history of the world is now standing beside you in your gold corner. What separates the home run king from the bunter, in terms of benefiting YOU, is the correlation between their ANALYSIS and the ACTION the reader of that analysis takes in the market. I plan to make you fully understand just what this HOME RUN KING sees, thru YOUR EYES.
10. The greatest fund manager in the world is Paul Tudor Jones. He uses leverage, but still the largest drawdown his flagship fund has suffered in its nearly 20 years in existence is: 11%. His market performance is the closest thing to what could be termed: Superhuman. Don’t bother sending me emails about buying his fund. His minimum investment is $5 million and the fund has been CLOSED to new investors soon after it started. There no exceptions, no “but will it open for me later”. Close that email. And hold on to the gold ball. Because he’s about to blow it out of the park.
11. The bottom line is that Paul Tudor has put on his gold hat, and the man wears a STETSON. If I was a gold bear, and it was my turn to play Quick Draw McGraw and against Paul Tudor, I wouldn’t just leave the building.
12. I’d get off the PLANET. For those pretending they know the next 50 buck move in gold, my words of advice are these: Listen to your mother:
13. Don’t pick your gold nose. You’ll get a nosebleed and ruin your gold shirt. And you’ll miss the gold party….The party is on PLUTO. Are you on the gold rocket with your spacehelmet on, yes or no?
14. I’m enclosing the link to Paul’s MAVERICK letter to stakeholders in his fund, courtesy of dealbook. I’ll be going over his charts individually in the coming days, and breaking his analysis down into compartments, one at a time, so you all understand why he is a gold ULTRA BULL. Here’s the link to Paul’s SPECTACULAR analysis:
Paul "Out Of The Park" Tudor Jones [Text of this is also below.]
15. I’ll also mention that ANOTHER fund master, Mr. Einhorn, stated just 2 weeks ago (!) that he views trying to choose one paper currency over another is like “choosing between dental procedures”. They are ALL going into the gutter against GOLD. Here’s a link to Trader Dan Norcini’s chart of gold beating on the Australian dollar:
16. What joe blow investor is doing is chasing price, and then crying that the Australian is winning the race against gold since THEY chased it. Look at the big picture. Gold is MAULING the Australian dollar, as it is mauling ALL Gman brands of paper currency toilet paper.
17. Gold is the PUNISHER. And the banksters are using gold to punish all paper currencies with their game to then claim, “look, all the banks and paper currencies under the system of national currencies isn’t working, the only solution is a BIGGER one, a global solution. We promise this time it will be different!” And all the public puppets will dance the “We’re saved by the global currency” dance. The banksters will let them out of the paper currency gas chamber and hand them gold at THOUSANDS of dollars an ounce that they CANT AFFORD. The pinbrains will buy anyways, with the carcass of their worthless savings.
18. “America has got to increase it’s saving rate now!”. Yeah sure, just in time to hyperinflated into oblivion. Thanks Mrs. Bankster, I’ll get right to it.
19. As the gold cover is introduced, the US dollar will effectively become the WORLD’S LARGEST GOLD STOCK. And the public will be selling it right at the bottom like there’s no tomorrow. Gold will be valued at thousands of dollars and ounce, so the dollar value of the banksters’ gold holdings will be huge, and what will occur with all paper currencies, will be like ALL your current gold stocks falling to 10 cents a share and then you sell them ALL to the banksters. That WILL be the action of the public with the dollar at the BOTTOM of the dollar bear mkt. Wait till you see what happens when the fundsters realize they should have ran a USD to gold carry trade, but they focused on the INTEREST rate differentials and leveraged that, per the banksters’ instructions. That strategy will in end in disaster for the fundsters. The time to play interest rate master comes after a bond bear market, not after a 28 year bond bull market. The public and the fundsters are SOAKED in bonds and various interest-bearing bond mkt sideshows. Junk bonds, income trusts, whatever. They will ALL be RAVAGED by the banksters very soon.
20. After 1929, John “Sir Johnny” Templeton bought all the NYSE big board stocks he could trading under a dollar with leverage (borrowed money). He made a fortune. After the dollar devaluation/printing extravaganza comes to an end, the US dollar market will look like the NYSE did after 1929. Those who buy into that lake of USD carnage stand to create massive wealth. But today is about creating the lake, not buying it for anything but a small range pyramid trade.
21. Those of you with ZERO Dow should keep in mind the Dow is the Gman’s main target of his hyperinflationary actions. The banksters’ main target is gold, but the Gman needs tax revenues, that’s WHAT he is, a tax collection machine. A soaring Dow, creating by the banksters destruction of the dollar, is just what the doctor ordered for Mr. Gman. Think about what you MISSED at Dow 6500. Do not allow your Dow short positions to exceed your long positions in size, but be prepared to buy the Dow at levels below 6500.
22. A number of people have said to me, “What can the bank of Canada do to lower the Canadian dollar? They are basically helpless.” Wrong. It’s called the Printing Press. Mark “Goldman Sachs” Carney lobbied parliament for absolute power to buy US bank otcds in UNLIMITED quantities, with printed Canadian dollars and then hand the worthless OTCDs to Canadian taxpayers to baghold. He didn’t get his way. But he’s got another kick at the can now, to pay off the winners of those otcds with Canadian taxpayer money. The Cbone (Canadian dollar) has rallied strongly, and the economy has started to slump, something he can blame on the “high” cbone. Mark is like the little brother watching big brother play out the window while he’s stuck inside. Mark is watching Helicopter Ben have all the fun while he is stuck staring at the Canadian central bank’s annoying charter, which is to maintain a strong Canadian dollar. Mark will do whatever it takes to get into the playground with Ben. And push the hyperdrive button on the printing press together with all the other central bank mangers. The bill for letting Mark outside to play will be astronomical, probably paid by generations of Canadian taxpayers.
23. As long as gold trades over 850 the gold head and shoulders monster rocket is still intact. But the reality is that if gold trades lower, if the rocket blows up, I want to own it MORE gold, not less, because further asset destruction now produces more damage to the economy, and will be met with an even greater devaluation of the dollar against gold after that, and an even higher level for the implementation of the gold cover with more gold required to make the cover.
24. So, ironically, a hard fall in gold now, would only produce a vastly larger rise later. Then again, I better call Paul Tudor and let him know the gold top is in, because some peabrain just sold another 500 bucks of 2 carat gold rings to a pawn shop in a hotel room. The peabrain got $100 in cash. Paul blew it. But he’s still got a chance to get to the hotel room, to take some lessons for the future.
25. Don’t turn your Pgen off in any mkt because some chart says price will do A, B, or C. TWEAK your price-determined buys and sells. Don’t ELIMINATE them. Focus on the LONG SIDE of the major markets, buying into price weakness. All else will send you into a tizzy. I’ve listened to THOUSANDS of very successful business owners give me their analysis why the greatest traders alive are all wrong about the gold MARKET and their brainless golf ball advisors and golf caddies know everything. Then I’ve watched them BURN. All of them burn like a Kleenex in the fireplace. That’s not enough for the banksters. The coming gold bull run is about the banksters vaporizing the financial ashes of these idiots. The market is the fight ring. If you bring an ego or a box of cracker jack box prize theories to the fight, you are going to get knocked out. By the end of this week, you WILL understand not only why Paul is who he is, but YOU will have a whole new higher level of confidence as his view of gold becomes… YOURS. As I layout and help you UNDERSTAND his VIEW in simple practical terms. Do NOT bet against Paul Tudor in the market. He’s the greatest trader in the world. The feeling I have now in the gold market, literally, is like standing on the starting line of the Indy 500 on race day! The noise of the gold race car engines is DEAFENING, and Paul Tudor is in the POLE POSITION.
26. You’ve been told.
Cheers
st
Stewart Thomson
Graceland Updates
October 28, 2009, 2:24 pm
Those who doubt an economic recovery is under way may want to check out the latest investor letter from Paul Tudor Jones. The legendary hedge fund manager of Tudor Investment sees a wave of money flowing into the markets, pushing up stocks, commodities and other assets in what he terms “The Great Liquidity Race.”
Winning the race, Mr. Jones posits, will be gold, emerging-market equities denominated in local currencies and commodity-related stocks. “I have never been a gold bug,” he says in the letter. “It is just an asset that, like everything else in life, has its time and place. And that time is now.” (A link to the entire letter is below.)
The gold bug has caught several big hedge fund managers this year including John Paulson of Paulson & Company, Kyle Bass of Hayman Advisors and David Einhorn of Greenlight Capital, who believe enormous monetary and fiscal stimulus that has been injected into the global economy will eventually result in hyperinflation.
For now, however, Mr. Jones believes the stimulus will lead to strong growth through at least the first half of next year, but could drastically slow in the second half.
Tudor Investment, which manages roughly $11 billion, is up nearly 15 percent this year, after posting gains of 2.3 percent in September, according to the letter. Other large hedge fund managers also scored big gains last month, including the Och-Ziff Capital Management Group (2.39 percent), SAC Capital Management (2.47 percent), Moore Capital Management (3.8 percent), Capital Fund Management (6.29 percent) and the Citadel Investment Group (4.33 percent).
– Zachery Kouwe