Graceland Updates 4am-7am

Nov 9, 2009

1. The IMF announces the dollar is too high, right after they sell 200 tons of gold. Why sell 200 tons of gold if the dollar is too high? Answer: If it’s not your gold, who cares. Whoever was involved in the IMF decision to sell that gold should be FIRED.

2. The Dow is storming higher this morning. Here’s the chart:

Dow prepares to blow thru the highs. Fundsters rip their hair out

3. Look in the gold $3000 mirror. The banksters are preparing to take gold to $1200-$1400. The head and shoulders on the gold bullion chart is telling you that. As gold accelerates and the dollar melts away, do you really want to be shorting the Dow with anything but gambling money?

4. Some of you have built a sort of “portfolio” of stock market short positions against ZERO longs. Focus on the long side of markets. If you own zero food futures fully paid for with zero margin because some pinhead told you “futures are risky!”, but you are short the Dow via leveraged instruments with large money I have to wonder what you are thinking… Look in the gold $3000 mirror. THAT is telling of major problems coming to the world’s food supply. Build wealth. Play the slot machines with gambling money.

5. Continue to remove money from the banking system on a weekly basis. Just like operating your Pgen. Don’t do things in PLOPS. Ignore those “analyzing” the banking system trying to guess whether the banks and brokerages will or won’t fail. Gold is over $1100. The risk to YOUR MONEY in the bank just went HIGHER. The question is: What are you DOING about that? The risk went up a TINY bit, so you take a tiny bit of ACTION, not a plop of action, and not a tiny bit of THOUGHT. Don’t think. Act. You want 1-12 months living expenses outside of the system. It’s up to you where you sit on the 1-12 month scale. Zero months of insurance is not smart. It’s idiotic.

6. “Golly Gee Whiz, I see ALL the banks in England were hours away from closing and street mayhem, and Dr. Pinocchio says that if the TARP recipient names were released, there would be a mass run on the banks across America, but I know all is fixed now, all is fine, because Daddy Gman and the banksters say so. I FEEL good, so all MUST be fine.” – Joe Public Investor.

7. OK Mr. Public, whatever you say. Go paste your Nortel and Enron certs on your mirror. Stare at it for a few yours and you might actually figure out what your own name is. Making money in the market starts with studying LOSING TACTICS, not BREAKING MIRRORS.

8. Here’s a chart of the gold price this morning. Notice MACD falling down while price goes higher. Team “Gold Bubble” aka team “It has to be a bubble because I don’t understand why it keeps going up while I’m short!” calls this a “non-confirmation”. “Macd is falling while price is rising, it’s going to turn down any minute now!”. Gold Nov 9

9. When the underlying picture of a market is very weak, technical indicators will trigger sell signals after only slight upmovement.

10. In a powerful market, the reverse is true. The tiniest bit of price weakness (or even just a slight loss price strength momentum) can cause indicators like macd to go to heavily oversold conditions repeatedly. The top callers are blown away like dust in the wind.

11. The correct mental state to be in now, for most of you is one of “annoyance”. You should have a feeling “I’m just too light in gold here, I should have sold less into this strength.” You are still loaded to the gills on gold, but the paper gold trading positions are lightening up. At 1150-1200, the bulk of most pgen trading position sells will be firing.

12. Those of you who are gold PLAYERS are in ecstasy now. The most aggressive of you players bought as gold burst out of the triangle pattern, a number of you with OPTIONS, in anticipation of the upside neckline blast. Then you bought MORE as price burst out of the neckline and even more as it pulled back into the neckline area. The most aggressive are in the most ecstasy. The more conservative of the “players group” are happy, but are thinking “I should have played bigger!”.

13. I said as we broke out of the h&s pattern this is the time of the Gold Player not the Professional. The professional makes money, but he says [sees?] the player RAKING it in.

14. The opportunities like the gold h&s come along VERY RARELY. I mentioned the “Bin Laden” head and shoulders. The bond mkt pattern in the 1980s. There was a double bottom on oil at $10 years ago that was a similar deal.

15. YOU need to decide if you want to be ACTIVE in the market or a PLAYER. If you look closely at the latest gold cot report, you will see the banksters operating as both professionals and as conservative players. As gold sells off slightly, they add longs while the overleveraged funds bust out on even THAT small weakness. But they continue to ADD SHORTS into THIS gold strength.

16. Many of you have engaged in many professional ACTIONS in the market over the past few months. Part of being a professional is understanding there are times when the player shines, and time when you shine.

17. The frequency of times that you shine is nearly INFINITELY more often than the player. A real player has to stay out of the market for months a time, even YEARS. They hit hard and then they are gone.

18. The fundsters tried to be players in the Dow, and engaged in some interesting chart analysis, turning a parallel up channel in the Dow into a wedge with their crayons.

19. Now the fundsters are DEAD as they crawl out of bed this morning and look at the email from their prime broker which says, literally, “Hey bud, you’ve got 2 hours to get down here with $10 million in cash to cover your margin hole in ground or we liquidate your WHOLE Dow short position, and since you’re a BUM that can’t get out of bed, by the time you read this you’ve probably got about 30 minutes to get your butt down here. And the only reason you aren’t liquidated NOW, is because I’m doing you a personal favour, got it?”

20. Seeing the Dow take out the highs of the rally from 6500 has melted their minds, and wallets.

21. Don’t be like the fundsters in the gold mkt. Or the food mkt. As gold surges towards $3000, the food mkts will resume their bull mkt. The micro mind timers will show up “waiting” for some price pull back. YOU will be in already, and when food pulls it’s version of the “gold 1000-680 tanking” show, you won’t care, because you are IN way below “food 680”. Well, well, well. Lookie what we got here: Here’s one Bloomberg’s MAIN HEADLINES from THIS MORNING:

22. Nov. 9 (Bloomberg) -- China’s corn harvest, the world’s second-largest, plunged by a more-than-estimated 13 percent to a four-year low because of droughts in the main growing regions, a survey of farmers showed…. Crop yields dropped 16 percent, erasing the benefit of a 4 percent increase in planted acreage…

23. I’ll post some info about food company ETF’s on the site this morning, compliments of THE BRAIN. I have to go out for a couple of hours first. When you think about corn, think about sugar. A year ago many front and centre analysts for commodity brokerages were saying there was “no end” to the glut. Read that news about China on Bloomberg. I’ll post it on the site. I believe this is only the beginning of a coming food supply horror show.

24. All the price up movement you are seeing now in gold will be magnified LOGARITHMICALLY when price DOES turn down.

25. I’m warning you about GREED and acting RASHLY. If you own substantial gold core positions and you sold some of your smaller trading positions too aggressively, don’t compound mistake number 1 with bigger mistake number 2. Making LESS MONEY than you would LIKE is ANNOYING. Buying LARGE into strength and then getting obliterated is a lot worse feeling than being ANNOYED.

26. Again, look at the cot report. Here it is. Gold cot nov 9

27. Gold pulls back a little, ok, be a LITTLE player. There is no change to the banksters’ basic actions of buying weakness and selling strength. I wonder why that would be? As consummate professionals, they continue to sell strength and buy weakness. So DO I.

28. Superman has done a spectacular job taking me from operating a homemade website to building the Pgen, etc, and has never asked for a penny. I gave him a royalty anyways. As more newsletters are coming together he’s building his own biz and has less time as I need more of it. That’s not a fair situation for either of us. It’s time to hire a full time firm to work with the writers every day to get these sites on the move. I’m told there are firms in India that will work for $3 an hour on a retainer basis. If anyone knows about this, please email me, any recommended firms, insight and tips are greatly appreciated.

Thanks,

Stewart Thomson

Graceland Updates