Graceland Updates 4am-7am

Nov 13, 2009

1. I made about 15 video reports last night. Trying to read 99% of you the riot act. None came out correctly, I erased them all. Maybe it was a night time thing, I don’t know. At any rate, my blood pressure back down to a normal 1200 over 800 (so be prepared for what follows). I’ll try and make my point in writing this morning. If my writing this morning fails to produce market ACTION on your part, I’ve FAILED. You know in my personal correspondence with you I’m generally polite and thoughtful. The morning letter is like hitting the weightroom before a powerlifting contest. It’s all about pushing the weight up and down. What I write here is designed for ONE purpose: To get you to ACT in the market. The gold weightlifting contest is on. Now is not the time for discussion. Now is the time to SCREAM while you lift those weights like there is NO TOMORROW. And, of course, that IS the reality: THERE IS NO TOMORROW. So here we go:

2. I’m receiving non-stop emails about the “gold top” and the “gold correction”. This is starting to remind of the 905 “it’s all over” email mayhem. I got only ONE email from somebody laughing about the gold topsters. Who is this idiot anyways? Why is HE fighting the crowd? What’s the matter with this guy? Well, he “only” put $30 million in family money in just one gold fund in 2003, and has been personally heavily invested in gold since 1999. Let’s not listen to him. The last time this pinbrain bought was at 905 after corresponding with me about the psychology of the market, as he did yesterday. Doesn’t he know he was supposed to short it at 905? He’s not listening to the crowd. What a moron. This guy is just some idiot with a doctorate degree in psychology who bought gold at the exact bottom in size. I’ll have a talk with him today and straighten him out, bigtime. I’ll make sure he sells everything today at the market, “to get in cheaper later”. I’m sure he’ll be happy to learn what horrible errors he’s been making in the market up until now. I fully expect him to issue a sincere personal apology to the entire gold community, for failing to join the current mass waving of the “gold top now!” community flag.

3. In the videos, I went thru the gold head and shoulders continuation pattern. Then I went thru the entire gold bull mkt. Just in the h&s pattern ALONE, I made note of several DOZEN buying and selling ACTIONS of SIZE. Meaning whole buy and sell programs featuring oscillators like macd on the daily chart moving from overbot to oversold and back to overbot.

4. Most importantly, like the sea tide coming in and out, the Pgen just bought and sold, bought and sold.

5. The Pgen did. So I did. I bought into EACH of those several DOZEN lows. I sold into EACH of those several dozen HIGHS. Did YOU? My largest buys came at EACH of those dozens of low points and my largest sells at EACH of those high points.

6. And what about the current mega roster of Team Gold Top Caller…

7. How Did The Current Gold Topsters Fare At Each Of Those Exact Lows and Highs?

8. I have 10 million gold topsters emailing me that gold is at an intermediate top. And that’s an underestimate. Look at gold $330. It fell to $300 from there. THAT was a huge event. Do YOU think today YOU are any smarter than those of us who felt THAT pain but HELD IN at 330? Do YOU know how much HARDER it was to deal with a fall of 10%-20% in gold bullion THEN, when everyone on the planet (except a few gold community “nutjobs”) was saying gold was DEAD?

9. No. Most don’t know how much harder it was. Nor do they care. All they care about is: Me, I, and NOW. The GREAT MISTAKE of the writers today is they stare at the NOW. The now is MEANINGLESS if you want to MAKE MONEY.

10. DO you want to make money in the gold market? Yes or NO?

11. In terms of ACTION, I’ve called the supposed gold top better than all the big mouths telling me where gold is going to GO next. Because I systematically have sold into every 10 dollar rise and bought into every 10 dollar fall with the systematic pgen pre-set points, INCLUDING 1120 on the sell yesterday!

12. Calling tops is for micro men. Booking profit into tops is what separates the gold winner from the wet noodle.

13. The same applies to the US dollar. I’m getting a thousand USD emails. “The dollar could rally big!” “MACD is crossing to a buy!” It’s the cycle point for a rally!”

14. Hello, earth to us dollar bulls on mars: I’ve been BUYING the US dollar into this weakness, right into the EXACT LOW with my LARGEST POSITIONS.

15. Let’s see now, I’ve been buying the dollar into weakness and selling gold into strength…I wonder if it’s possible that I think gold could sell off some and the dollar could rally?

16. No, I never thought of that. Thank-you all for informing me that gold could sell off and the dollar could rally, I never knew why I was selling gold and buying the dollar. Now I do! Thank-you!

17. It’s time to get serious. There’s been two HUNDRED dollars of gold price STRENGTH. Only a MORON has been a BUYER of all that strength. It’s been a non-stop profit booking party, and, yes, we are all travelling lighter as traders having sold into that strength.

18. That’s what professional trading IS. Up, down, up, down. Gold goes down, we buy. It goes down more, we buy more. Gold goes up, we sell. There is no gold “event” coming. There is only those who book profit into strength and those trying to win a talking contest like a wind-up gold mouth topster doll.

19. Are the top callers really transferring any money from their brokerage accounts to their bank accounts, booking and locking in real profits? NO. I am. I’m really doing it. ALL THE TIME. They don’t have any gold to sell. They are OUT, standing there flapping their mouths. They are WATCHING the cot reports while taking NONE of the actions the banksters are taking to make those cot reports what they are! Go back and look at the cot reports EACH week as gold has risen $200. What has transpired? Answer: The banksters have booked profit into all strength. There is no “light switch” event. It’s a daily grind. Price rises two hundred bucks and you feel LIGHT. That’s REALITY.

20. Keep flicking your gold top call light switch. The banksters have wired in a million volt line to the switch. Keep flicking it and see what happens.

21. The GREAT ERROR being made in the gold community right NOW is a failure to look back at the past. The gold charts of the PAST. Most will arrive at gold $2000 playing the same game they are playing now, and will be poorer then, than they are now.

22. Gold has broken out of a massive head and shoulders pattern. Option traders have booked a TON of profit. Gold players are: LONG AND STRONG.

23. The current price action will look like a blip on the chart…

24. JUST AS ALL OTHER INTERMEDIATE RISES AND FALLS OF THE PAST DO NOW.

25. Oil is leaping higher this morning from the lower demand line area I marked on the chart in the oil video yesterday. Another blown opportunity for Team Oil Price Fantasizer. The price of oil falls 6% and what do they do? Fantasize about some magical super bottom call at $50. Keep pipedreaming. You’ll be sitting at $150 oil entering your orders into the computer while blabbering about some top at $170. Don’t be on the BUY at 150. Be on the buy as a professional NOW. What rhrymes with buy at 150? Answer:

26. Die at 150. Oh, I forgot. Most oil investors already did.

27. I saw all this in the 1970s. The gold market feels like I’m in a kindergarten playground and all the kids ate a pound of sugar. The NOISE is deafening. I can barely hear my kachingos on my cash register as the kids, booking ZERO profit themselves, keep informing me that gold is a sell, WHILE I SELL IT !!!

28. As I keep saying, there is no gold top. Stop sending me emails that gold might fall down. Start sending me emails about what action YOU are taking. Action makes money, nothing else does. I’ve executed more than a HUNDRED SELL ORDERS ON GOLD into this 200 dollars of strength. Action. Not BLAB. Think about YOUR GOLD. Don’t think about what action you might possibly maybe consider taking if gold falls down $10, $30, $50, $100. DO IT. That is how a pro THINKS. They THINK in terms of: ACTION. If YOU think gold is going to $1000, 900,800, or ten cents for that matter, my question to you is: Do you have ONE buy order for ONE ounce of gold or one gold share at THAT POINT? I have pre-set buys to buy gold to ZERO. I don’t need to be told gold could possibly fall to 800. I have BUY ORDERS there because I already KNOW THAT. Do YOU have any? If not, why not? Money is made by ACTION. Take it.

29. Remember when I told you about one sub that failed to buy weakness and sell strength, and he asked me to stop emailing him the letter, saying, “Stewart, I’m out of the market. If only I had listened to you.” He’s BACK. And doing it professionally this time. Not perfectly. But professionally. He persevered and is now executing in ACTION, instead of flicking a light switch and expecting to be transformed into Paul Tudor.

30. I’m going to go to the store and buy a box of toothpicks. Then I’m going to spray paint them gold. Then I’m going to put them in a little jumbled pile on the floor like gold pick-up sticks, with a label that says, “Gold Top Callers.”

31. Then I’m going to put on my hiking boots.

32. Then I’m going to spend 15 minutes jumping up and down on that pile of nonsense. Until it is GONE.

33. Many of you are still trading too big. Stop trying to outsmart the banksters and call your personal gold top. You are wasting time and energy that could be spent booking profit and transferring money into your bank account.

34. Do you see ONE action on the part of the banksters in the market that indicates THEY are playing top caller? NO. Just sell into this strength like the PROFESSIONALS are doing, with HUNDREDS AND EVEN THOUSANDS OF TRADES INTO STRENGTH, and ACCEPT the reality that travelling light on two hundred dollars of price strength IS the FEELING that PROVES you are trading PROFESSIONALLY.

35. No professional cares about some amateur gold light switch flicker. “I flicked it at the top, and then it tanked. I did it!” Who cares. The pinhead barely escaped alive, unknown to him. “I flipped the coin 4 times and it came up heads each time! I’m a coin flipping master! I’ve done it!” Leave the light switch flickers to their games. It’s ANNOYING trying to ring my cash register while the kids keep flicking the lights on and off. Remember the kids playing with the light switches as they got bigger? That’s all this is, a bunch of kids flicking the gold light switch. While WE flick the CASH REGISTER.

36. Many of you were absolutely SHREDDED with your light switch game to short the Dow into 6500. The monthly charts on the Dow at that point were the most oversold in FIFTY YEARS using MANY technical oscillator histories. The oil, gold, silver monthly charts are ALL on MASSIVE buy signals. YOU have been TOLD.

37. The CRB index, the general commodity index, is on an even BIGGER buy signal.

38. YOU have been TOLD.

39. If food prices deflate from HERE, STARVATION is coming. We’re that close to going into the abyss. Price deflation is NOT coming. Massive price INFLATION is coming that going to send the general market price bears to EXTINCTION.

40. Dr. Ben Bernanke KNOWS the OTC derivatives bomb of a thousand trillion dollars can’t be reversed with his bond buy program. Lower rates to zero failed. Asset purchases failed. Fraud accounting failed. All of the attempted solutions failed, just as the banksters knew they would. Gold revaluation, underway now, will fail. Only all-out money printing, the NUCLEAR solution in his armed tool box, will work to reverse the asset price deflation.

41. Asset price inflation is a solution to asset price deflation, by definition. It is NOT an ECONOMIC solution. Money printing will reverse asset prices, but not asset VALUES.

42. What is the solution to reverse asset values?

43. Answer: The OTCD THUNDERBALL is too big.

44. THERE IS NO SOLUTION.

45. The fire will burn itself out. Then those who stood away from the fire, those who avoided it with GOLD, will clear the ashes and rebuild.

46. Gold is the punisher. The gold cover ratio will stop the asset price reflation from going totally out of control. The gold cover will NOT rebuild the economy. But it will allow the fire to burn itself out in a controlled burn. And those who avoided the fire will then finance the rebuilding. She who has the most gold is she who is in the best position when the fire is over. The banksters have the most gold.

47. The gold price TERROR I’m seeing now, EXCEEDS the fear I saw at 905. By a HUNDRED FOLD. You KNOW what happened at 905. Remember Dennis [Gartman] “The Gold Market Menace” Part-man calling gold WAY OVERVALUED at 930? Not just overpriced, overvalued. He bills his subscribers FIVE THOUSAND DOLLARS A YEAR to hear THAT? There are MILLIONS of bubbles in the world gold market, yes, but price is NOT one of them. Instead of five thousand, I think I’ll mail Dennis five CENTS for a subscription. With 4 of those cents being his TIP.

48. TWO HUNDRED DOLLARS LATER TO THE UPSIDE, WHAT DOES HE SAY NOW, HOW OVERVALUED IS GOLD NOW, SIR, PLEASE TELL ME!

49. The odds are EXTREMELY high that gold works off it’s overbought condition on the daily and weekly charts without much price weakness while the technical oscillators drop down, EXACTLY WHAT HAPPENED WITH THE DOW AS THE DOW TOPSTERS KEPT FLICKING THE LIGHT SWITCH IN A PRICE PLOPPING CLOWN SHOW. While I’ve shorted the Dow into strength, have my shorts exceeded my longs? NO! All I’ve really done is: BOOK PROFIT.

50. I’m doing the same thing with gold and the US dollar.

51. See you on site, on the hockey rink. I’ll kick it off with the CRB index monthly chart STEAMROLLER. I hope you like bear mkt pancakes, because that’s what the banksters are serving for breakfast in the world’s asset price markets, and soon. Better to eat bear pancakes than BE one. Let’s get out of the gold spectator stands and back on the RINK. Instead of betting on who is going to win the game from the stands….let’s, el pronto, get back to the basics of skating down the ice and put that gold puck in the net!

52. GDXJ is up and running. Thanks for all your emails. I’m running my pyramid to zero. I’m using a 50% inner core, 25% at a 3 to 1 ratio to pull risk capital off the table in case the banksters have some unknown games for us, but I’m “stretching” my outer sells to a mix of 10 to 1 and 20 to 1. Alternating them. Could GDXJ rise to 200? Sure it could. What about 400? I’m less sure about that, although some brokers show it traded there on the first day! Somebody got FRIED if it did. Do NOT use market orders. Put a PRICE to your order. Do not go “at the market”. IF GDXJuniors goes to 400, I want to be a seller there. We’ll see what happens. You buy gdxj not for “safety”, not to replace anything, but as a tool to save TIME of trying to trade a zillion junior gold stocks at the same time. There’s monkey biz in the prospectus, yes. The banksters will make more money from this fund than I will, no matter where price goes. I accept that reality. If I accept the risks in the prospectus, and assume other risks exist that we’ll never know about, and I apply risk capital accordingly, and pull risk capital OUT via my trading sells, I should be reasonably happy that l am managing risk professionally. It would be all fine and dandy if this was a John Embry deal with Agnico Eagle making sure all was derivatives-free, monkey business-free. It isn’t. It is what it is, and I accept the risks and have my buys in place. All the way to zero.

Cheers,

See you out there!

Stewart Thomson

Graceland Updates