Graceland Updates 4am-7am

Nov 19, 2009

1. Well, well, well. Lookie what we got here! It’s Queen Gold. On sale!

2. After touching 1152 yesterday, we came down to about 1132 this morning. One of you, a gold dealer here in Toronto, reported that you bought, a bit.

3. Another sub, who I mentioned was out of the market for using wrong tactics, has come back with a whole new mindset of strength. Yesterday you reported you put $2 million into the GDXJ.

4. This is the time for gold stocks. The correction was on last night in gold and other commods. Is it already over? Who knows, all we do is respond to the Queen’s orders, which are to buy SOME if price is down SOME.

5. Thanks to Golden Surveyor Rick for this NG nugget: China provinces hit by severe gas shortage - report 17 Nov 2009 BEIJING, Nov 17 (Reuters) - Central and eastern Chinese provinces faced the worst natural gas shortage in years as supplies were diverted to snowstorm-hit northern China, while producers lacked incentives to expand output because of poor margins, a state broadcaster said on Tuesday. Gas supplies for taxis in Wuhan, capital of the central province of Hubei, were halted from Monday while 11 industrial companies in Hanzhou, capital of eastern Zhejiang province, were shut as a result of gas shortages, China National Radio said.

6. Still think NG is a shortsale for some big fast money like the writers keep looking for?

7. When you buy an item into weakness in price, there’s a reason for that price weakness. The reason in the case of NG is a supply GLUT. To move from glut to shortage can occur faster than people think.

8. There are only about 3 weeks of wheat stock supplies in the world. While there’s no shortage now, it does not take make to cause a flip. Just as a the solar poles slowly move towards a flip and then do it suddenly in a crescendo of magnet activity called a sunspot, the same is true for the supply-demand equation for commodities. A couple of weeks ago, there was a glut of NG. There still is.

9. By the time I send this update out, I wouldn’t be surprised if the grains, metals, energy, and stock markets have already turned back up. After giving a boatload of “sell signals” to the fundsters who acted on them yesterday.

10. The Dow has soared over 60% from the Dow6500 lows in just 8 months. The hedgehogs are dead, having called the top about a hundred times all the way up and failed 100% of the time to nail it even once.

11. Yet despite that massive move, the largest rally in over 50 years, the grand daddy of technical indicators, the 15,9 series TRIX, is only JUST NOW PREPARING to issue a BUY signal. (!)

12. The hardest thing for the fundsters and gcms (gold community members) to get a handle on is the reality that the Dow can rally while earnings melt away, because markets move on liquidity flows, not statistical facts.

13. It is not practical for the nearly 10 trillion in institutional liquidity to move that into junior golds. (Besides, judging from your emails I think Graceland subs already own about 200% of the world’s junior golds anyways!). So they move money into the general market on a view that the dollar will decline.

14. I could move junior golds by “recommending” one that I’ve already bought. Then you buy while I sell. A win-wiener deal. With me on the win side of things. You on the oscar mayer end of things. We have enough of those operators wearing gold analyst masks out there to go around. I won’t even recommend a gold BULLION dealer to you, so I’m the last guy who’s going to take a risk on a junior pump and dump show. I don’t have any interest in that nonsense. If anything, many of you get frustrated when I send you notes where I basically say, “who cares what your company is doing, I don’t”. I’m interested in the juniors sector. I couldn’t care less who hit it big. Ironically, that’s how you make big money. Because ALL I care about is that you bought that stock systematically into weakness BEFORE they announced their super news. Respond to price and you will be in for the big gold announcements that are coming down the pipe from the juniors.

15. No big money has made its way into the Dow on this rally. Yet. Volume is horrible, the public is busy celebrating their latest genius play, high overhead in the airship bondenberg.

16. The big money will come in, very fast, when the bond mkt turns south at the same time as the dollar breaks down.

17. All dollar bulls need a major reality check. This is a massive bear market in the US dollar. The current bear began in 2002 as the banksters handed the fundsters and govts their USD holdings. The Chinese govt holds 2 trillion in dollars because they BOUGHT them. If you buy high, yes, you cry when price goes low. The gold community is more concerned about the Chinese gman’s dollar losses than they are about the losses on their own gold stock!

18. OF COURSE there will be huge rallies in the dollar, as there have been already. But look at the long term chart. It’s a major bear chart. I’ll walk you thru it this morning by video on the site. There’s an OTC derivatives nightmare, a small but fast-growing movement to have the US govt chopped down to size BIGTIME and forcefully if need be, a printing press with the off button broken, an INDUSTRIAL REVOLUTION in China, and a debt that’s out of control.

19. Those are SOME of the fundamental drivers of the dollar bear market. Those fundamentals are GROWING, not shrinking. My message to the dollar bulls is this: There were rallies in the 1929 Dow decline of 90%. Do you think it was important to play those with large money?

20. I’m playing the dollar rally. I’ve booked, off the top of my head, about 15 wins on the dollar against the Cbone, which is my play. But it’s a peanut play.

21. This is the BIG SHOW. The BIG GOLD SHOW. It’s not the “see, I proved it! I proved the dollar could actually rally!” show. Gold is fundamentally a TRILLION TIMES stronger than the US dollar. Put in a ring for a death fight, the dollar has a 100% chance of losing.

22. Luckily Mr. Donald Buck, gold isn’t playing for keeps. Gold is only going for the knockout. I give gold 99.9999% odds of success.

23. If there was no head and shoulders on the gold market, no massive continuation pattern, I would NOT be issuing an “attention gold PLAYERS” call. I don’t play anything for size unless the odds are OVERWHELMINGLY in my favour.

24. WHICH THEY ARE NOW. The odds are overwhelming favouring the gold stocks [which?] are all out on the Indy 500 race track right now, and if you aren’t in the driver’s seat of some of them, you will NEVER get in, except just in time to be FRIED.

25. Do NOT do to yourself in gold stocks what many of you did in bullion as gold blew thru the neckline area.

26. I’m bringing MORE MONEY to the gold table into any and all weakness from 1200 down, as I did this morning.

27. Stare into the gold head and shoulders pattern. Tear into any price weakness like a starving tiger on a deer.

28. I repeat. There is NO GOLD TOP. There is only the opportunity of a classic pullback to the neckline. You will be LUCKY if it occurs. Respond to any PART of that OPPORTUNITY with your pre-set Pgen BUY orders, not your “see, I proved the US Dollar Donald Duck could actually throw a punch against King Gold in the market fight ring. Of course he can punch.” The bookies will take a bet that gold’s opponent can throw a punch. But they won’t pay out much money when you win that bet.

Check out the USD video on the site in a bit. Watch the noodle throw some punches. Of a 12 round fight, Mr. Donald Buck will win 3 or 4 rounds, yes. He’ll lose the fight. Bet on the fight, not the round, and certainly not a punch with any serious money. The payout is too low.

Cheers,

Stewart Thomson

Graceland Updates