Graceland Updates 4am-7am

Nov 6, 2009

1. Most subscribers are pretty happy with the Pgen and the letter itself. Like stock prices, we all move in trends, minor, intermediate, major. A writer in a personal bear market isn’t exactly going add rocket fuel to your party. I’m always looking to improve things. While I’m maxed out in terms of hours I work (4am-8pm), I feel I’m only about 20% efficient. One of you, a substantial corporate lawyer who I’ll call “Mr. Left Side Brain” is having a large effect on me. I feel the letter can become about 4 TIMES better as I apply the left side of my brain to what I’m already doing with the right side. I was a top math and science student in school, but I was THE top English student with nobody else even remotely in second place. I used to go way into the author’s minds when writing essays and was accused of plagiarism many times. My grammar has regressed over time as it’s been years since I wrote essays or did any serious reading of any English literature.

2. Some of that “regression” in the newsletter is: deliberate. In a war, theories need to be modified to account for the real battlefield. I write in short sentences, because the long essay style writing does not send you to the pgen or the market to enter orders of action. And that’s the bottom line here: Action. Short sentences work on the market battlefield. Like this. Some occasionally bad grammar is a necessary tool of the trade. The trade of: motivating you to take ACTION IN THE MARKET. Sometimes I get overly sloppy, and overdo things, as I have been doing for the past couple of weeks as the Gold Rocket has launched. A couple of you have called me on that sloppiness, and I appreciate that call. Saying something, and teaching it, are two different things.

3. If you picture a car driving at 4mph with somebody walking behind that car, that is the picture of “Mr. Left Brain Lawyer” driving steadily forwards with me walking along executing tasks steadily. I can’t slow down or I’ll be dragged. I’ve come across many people who have tried to drive that car. It’s always been too fast, too slow, or they just drive off the road and I cut the rope while they crash. The relentless but 110% fair pace this corporate lawyer maintains has opened a window of what I see as a potential to increase my work capacity by: 400%.

4. The picture I would suggest the non-gold community should have is not one of me being dragged down the road by a car, nor a yahoo riding a bronco with no control. The picture of reality is this: A tank driving down the road with a tiger walking behind it.

5. All is on track towards developing a fund, and then a bullion bank. The fund needs a wide base of investors, hence the need for more newsletters to create a broader base for the fund. Starting a bullion bank without a powerful fund in existence is a fantasy. I have several software engineers on board, lead by superman. All is moving forward. Every time you sense I’m not quite “spot on”, the reason is because I’m driving hard at another part of this bigger picture.

6. Mr. Supersonic Left Brain doesn’t yet understand the BILLIONS of dollars that HE can personally make, just from the fund, never mind from the bank. The bank will make the fund look like a peanut act, just as certain metals stocks are poised to become entities like Microsoft, and Mr. Left brain understands THAT picture. If he MAGNIFIES that, he will see that a pyramid play on the rare earths by a large entity operating as a fund and bank would something of stunning power and wealth as the gold bull market goes into warp speed mode.

7. The ONLY two weaknesses the banksters have are: a. They don’t leave anything on the table for the next guy, they take it all. B. Size. They have size in dollars, not size in people. The gold community in terms of its population is VASTLY larger than the bank families. If chunks of the gold communities of China and India were mobilized in a unified group, buying weakness and selling strength, that group grows in power.

8. The real power of the banksters comes from buying weakness and selling strength all the way to zero. Everything else, including fractional reserve banking, cheat games in the market, and printing money…all are additional tools that LEVERAGE the basic foundation of buying weakness, selling strength.

9. The bankers are not going to destroy their own foundation. But an entity with a population size that is TEN THOUSAND times larger than the banksters begins buying weakness and selling strength, that entity will eventually make the banksters look like an ant. The banksters took generations to build their empire. The gold community empire will take just as long to build. If profits couldn’t be had for ALL participants all the way along that road, I wouldn’t be writing this sentence.

10. She who has the most ounces rules. If Dr. Ron Paul had a professional marketing team focused on the common goals of the gold community as he lept forward in leaps and bounds towards those goals, including “bye bye central banks of the world”, he would be quickly targeted for assassination. The victory of the gold community will come via Chinese water torture. One buy weakness drip, one sell strength drip at a time.

11. Speaking of the Chinese: Do you really think that if I was to take Graceland into China, I would be stupid enough to include things I’ve written about the Chinese Gman in what I write? I doubt my name would even appear, let alone my Chinese Gman blasts.

12. The Chinese us-them wall is no different than the white-black wall was in America. It will fall in 2 generations, shell-shocking the current generation. If you want a picture of China in 2075, think: Star Trek. Not Long Trek.

13. YOUR Chinese Star Ship is not a Chinese Gman cheerleading suit that is worn right now by 99% of the gold community. YOUR Star Ship is: The Chinese Dow. All the way to zero. The FXI-n, the Xinhua25 ETF, is about 45 bucks. Remember when the Dow was 45? If you could buy the Dow today at 45, would you? If your family owned the Dow from 45, like the banksters DO, would you care if the Dow fell from 14000 to 6500? “Oh no, now I’m only up 150 times my original investment, this is a disaster!”

14. Here’s FXI-n: FXI Nov 6

15. Notice the lower highs on the relative strength with higher highs on price. MACD looks positive. In such a situation, all you can do is set your pgen buys and wait to see how price direction resolves itself.

16. I would like to draw ALL your attention to the fact that Jim Sinclair has for the first time raised his personal minimum target price for gold, in writing, to $3000. He has not been specific in the past beyond $1650, although he has clearly stated his only error will be his $1650 final price is too low, based on the logarithmic rise of the OTCD’s from 70 trillion to a thousand trillion, then marked to Dr. Pinocchio’s secret number with no audit allowed.

17. Now, here’s how to apply the above, to market ACTION to create PROFIT for you: What price do you think your junior golds will be trading at if gold is $3000?

18. I’m getting a great sense of disappointment in the gold community over the “failure” of juniors to follow bullion higher IMMEDIATELY. Look at the Dow. It’s down a lot from the highs, and the action of the Dow affects the gold juniors. Money for projects is still tight. The time is now to set pyramid BUY programs on the juniors. Gold’s move from 980-1090 has come while the stk mkt meandered. Don’t read too much into the gold-gold stocks lag. It will probably take $1500 gold to put the gold stocks in hypermode, but the market will be so volatile then that buying will be nearly impossible. Those that buy then will sell out at small gains then big losses repeatedly and give up.

19. The markets are very volatile this morning as I get ready to send this off. That volatility will only increase in the coming months. Amateur traders without real information stand to be hurt badly by this volatility.

20. Only the Pgen will work in this kind of volatility, and even here, you need to: Think Big. Day traders are going to be slammed like a pinball from one price point to another. You witnessed the rocket take off in gold. Higher gold prices = higher volatility in all markets.

21. The unemployment report was a disaster. Soon the recovery will be realized to have been smoke and mirrors. Traders will panic as the banksters pull the mask off the “all is fine now” painting they had the Gman artists draw for you.

22. Ok soldiers, it’s out to the Pgen battlefield we go. The gold price charts looks like an electric sewing machine this morning as I send this off. We hit 1099 on one of the upside thrusts! Some you are reporting you sold into the “1100 area”, booking very solid profits.

23. Here’s a picture of the gold sewing machine in action. Don’t forget about gold’s relatives during any price weakness.

Gold Sewing Machine. Can You Trade THIS???

24. Set your buys and sells to account for LARGE volatility. You just watched the gold timers blown to smithereens as gold leaped $100. That is a TINY taste of the volatility coming down the pipe. Look at the gold sites. Do you see a lot of your favourite timers? If they are “missing in action”, you can bet they went short with leverage and blew up.

I’m a buyer across the board in major mkts showing weakness this morning, particularly OIL.

Cheers,

Stewart Thomson

Graceland Updates