Graceland Updates 4am-7am

Nov 16, 2009

1. “Like a candle in the wind.” – Elton John, rock singer.

2. “I’m a top caller in the wind.” – Gold shorts this morning. As gold makes new high number 5 zillion.

3. GDXJuniors came in priced at $25. The dollar price per share is irrelevant, or should be. It could have been priced at $2500 or 5 cents a share, and the VALUE would still be the same. It’s simply a box that holds a bunch of stocks in it. You’re buying a piece of that box. The dollars value of your trade size is what matters, not the price per share. The price per share x the number of shares outstanding = the dollars that are supposed to be invested in the stocks of the gdxj index, give or take. Now, of course, the games begin, as the games begin with all funds; the managers and the banksters see what they can skim off the investors.

4. If gold goes to even a tiny fraction of the price that the parallel upchannel suggests it is going to, (never mind the price suggested by the worthless FRAUD-priced OTCD’s, an issue that Jim Sinclair says will result in BANK DEPOSITORS getting NON-MARKETABLE Govt T-bills-JUST IN TIME FOR CAPTAIN INFLATION TO ARRIVE AND TURN THAT INTO THE WIENER TRADE OF THE CENTURY FOR JOE BANK ACCCOUNT HOLDER) the skimming operation should not have any material effect on your performance. “I made 3,982%, but if the banksters hadn’t ripped me off I would have made 4,124%!” - You, 2011? Nothing wrong with that performance. Focus on the big picture, not the fees and skimming operations. I remember in the late 1990’s many investors began moving from one fund to another, claiming, “but I only made 18.4% last year, if I was in this no-load superfund I would have made 19.8%! I’m being ripped with my high fee fund!” Then it all tumbled down 80%...

5. It’s important to reduce costs and manage risks. If some new juniors etf shows up that is better than gdxj, obviously we want to look at that. But don’t throw out the mountain, while clutching a molehill. There is no other juniors fund.

6. Think very carefully about the public all around you. They are telling you bank accounts are totally safe. The amount they know about markets is arguably LESS than ZERO. They have a 100% record of getting ALL major market moves ALL WRONG. For hundreds of years. Suddenly they are experts on “the recovery”. Do you know how STUPID that sounds?

7. Physical bullion. Agricultural land. Cash outside of the financial system. Dry foods. This is your 4 pronged insurance against the banksters coming attack on bank account holders. Don’t panic. Act with insurance tactics that are practical in the real world.

8. Recommendation: Start measuring your net worth in ounces and kilos as well as dollars. Start the transition.

9. I mentioned on the weekend the importance of separating the DEMAND-DRIVEN commodity VALUE bull market from the OTCD driven PRICE bull mkt.

10. At some point, global economies will recover and the demand from Asia will cause a sustained higher level of commodity prices. But the current bull market in commodities is about the printing of paper while global demand for commodities STALLS and FALLS, as the global economy spirals DOWN. Most of the economic numbers coming out of China make the US mark to model numbers look like Honest Abe calculated them while under threat of the death penalty. China is on the very edge of mass starvation with a horrific water situation. Pollution is the LEAST of their problems and THAT is HORRIFIC. A catastrophic weather event could cause an already horrible situation to go over the deep end.

11. Sunspots are solar storms. The current solar cycle peaks in 2012. Twenty years ago, a solar storm knocked out a transformer in Quebec and took down a huge chunk of the power grid. It’s unknown what kind of effects the peak of this storm will have on high tech computer equipment. Here’s an excerpt from a 2006 report on the situation: "Emergency services would be strained, and command and control might be lost," write the researchers, led by Daniel Baker, director of the Laboratory for Atmospheric and Space Physics at the University of Colorado in Boulder.

12. “Preparations, Schmeparations. What does Dan Baker know, he probably thinks gold is a solid investment too! What an idiot, doesn’t he know the recession is over! I’m increasing my exposure to the financial system and cancelling my insurance policies. Dry food? Farmers driving Maseratis? What a joke. Jim Rogers is a dumb old man. I’m smarter than he is! My advisor is holding an elite seminar, for quality people like myself, called Income Investments For The Long Term. We certainly don’t need riff raff like Rogers raining on my parade!” – Joe Blow Public Investor Moron. Nov 16, 2009.

13. In the depression of the 1930s, a bankster-engineered financial system wipeout was accompanied by a climate wipeout, the dust bowl. The coming solar storm is not a 10 second event. “A contemporary repetition of the [1859] event would cause significantly more extensive (and possibly catastrophic) social and economic disruptions," the researchers conclude.

14. A PERFECT STORM is brewing. If you haven’t got a full picture of MILLIONS of people standing in a bread line with no food in 2011-2012, give Mr. Baker a call and he’ll give you a major dose of reality.

15. The solar storm IS coming. The biggest in 50 years. And it is set to arrive just as the govt bond markets of the world may be in total collapse, and the stimulus programs are recognized as having ALL failed to re-price a thousand trillion dollars of failed OTCDs, never mind create a recovery in the economy.

16. Ironically, on the electric storms preview front, one of the modems I use for one of my internet services to send out the free reports I do from time to time, blew up on the weekend. I’ve got the computer back here now, so I’ll be posting part 2 of the oil report on the site today.

17. The oil chart looks PHENOMENAL. Just as the gold top callers are pulling their hair out, now almost screaming for a gold correction, the oil market likely about to mimic that action, rising impossibly higher and higher while the writers surround it with their “I promise to buy you Mrs. Oil if you will just fall 1 dollar a barrel!” flags pounded into the ground. Mrs. Oil won’t pay any attention to them.

18. The oil investors who bought at $150 last time will this time NOT buy at $150 and this time oil will BLAST THRU $150.

19. EXACTLY WHAT HAPPENED WITH GOLD AT $1000. The oil market, right now, reminds me of a weaker sister of the gold market as it nearly breakout from the triangle formation. It could all fail away, yes.

20. But if it does, it only “fails away” into YOUR buy orders placed at lower prices. Preferably orders that extend all the way to zero.

21. PLAYERS can look at look term oil OPTIONS, like long term options out to 2011 and 2012 on oil stocks, futures, and funds like USO, USL. There isn’t much liquidity, now, on these items. You need to put a bid in. You aren’t buying for a flip. You are betting that oil breaks out upside and RUNS higher, way higher, for YEARS.

22. See you on the site as our gold rocket soars thru the asteroid belt of top callers. Don’t worry, it’s only a matter of weeks before they are completely GONE.

Cheers,

Stewart Thomson

Graceland Updates