Graceland Updates 4am-7am

Nov 21, 2009

1. Report Card Day. I like to end each week with report card day. Did the professional sell into this strength in the items they trade in the market? Did they buy weakness? Did you?

2. A lot has been going on behind the scenes this weak. I’m the first to say that my letter this week lacked some focus and I fell behind in some email correspondence. My report card this week- at least on that front- isn’t too great.

3. Building a platform to compete with the banksters is not a one-day event. It’s not about setting up a bucket shop in the Channel Islands and calling it a bullion bank that is going to take down JP Morgan while you send in “donations to the cause”, that I use to retain an escort service on speed dial with the money and mark it “business meeting”.

4. There are a number of things that separate what I do from other writers and one of those things is my recognition of each subscriber as a human being that may bring a huge VALUE to the execution of the vision that is my responsibility.

5. Patton rode on a tank shooting a handgun at enemy planes. Did the handgun achieve anything? Little or nothing in terms of enemy kills, but his vision and willingness to be on the front lines had incredible effect on the vast forces he commanded.

6. Remember the story where Patton faced the injured solidiers, but “lost it” on one who was simply overcome by fear.

7. The market is a battlefield. And I have forced many who have built successful businesses, to look in the mirror after failing in the market. I show them the solider who is in the hospital. A coward. Most of you are here because you are big enough to admit that fear. It is something I had to go thru myself. It is about learning about understanding what price levels for a given risk taken will trigger what amount of greed and fear. All people will exhibit THAT all-encompassing fear, in the right situation. If they haven’t shown the fear yet, they just haven’t been shown the situation that bring it out.

8. The market offers the ultimate in reward. And the ultimate in fear. I have seen grown men act in TERROR when gold falls $100 an ounce. Like it is going off the board forever. I’ve seen men who have built incredible factories act in a fit of madness in the market, building friendships with financial product salesmen like they are blood family, only to turn into litigious demons when reality and the coward in the mirror and has been showed to them. There was no friendship. There was only greed. Greed that was replaced with terror when reality presented itself.

9. I have told my former clients that I better not hear from a single one of them when gold is thousands of dollars an ounce about how gold is wonderful and here to stay. I hang up the phone if it happens. Where was one phone call when price fell? When it was down and in the trench? The only phone call on the buy side I ever got from a millionaire business owner client when I was a broker when the price of a major market declined…. was from members of the gold community. And they made money year after year. We are all cowards. The difference between the winner and loser in the market, is the winner knows it and seeks to take risk and reward management actions that account for his cowardice. “A hero is afraid to proceed, but he does anyway” – John Wayne. Most of those I told about this in 1999 failed to listen. They laughed, loaded up on Nortel and Enron with massive sums, leveraged money into real estate and mutual funds, and treated gold bullion, the world’s lowest risk investment, like a penny stock. The last action demonstrating their ULTIMATE stupidity. They have paid dearly for their actions, and will pay a far higher price for their failure to admit their cowardice over the next two years. Many are destined for the bread line, and worse.

10. The banksters base most of what they do on their phenomenal understanding of this terror and greed. It starts with understanding it in themselves. The few in the gold community that have the same ability to buy far into the pain zone are like Patton. The banksters are like Bin Laden. Both Patton and Bin Laden were born with an incredible ability to face fear. They are highly intelligent. But unlike Patton, Bin Laden will do anything to win. Anything. There is no limit to the pain he is willing to inflict on other human beings. None. The banksters operate in the market with Bin Laden’s mindset. Evil is not stronger than good. In terms of numbers, the gold community worldwide makes all the banksters together look like one ANT standing in front of a giant STEAMROLLER. Throw in all the governments of the world and you have 2 ants standing in front of the gold community steamroller. The banksters and the Gmen have not felt real fear for 100 years.

11. THAT is about to CHANGE.

12. But, if we can’t buy weakness and sell strength, we are not a steamroller. We are: Nothing.

13. What I envision is a series of funds worldwide that buy and sell gold using the Pgen. The robot is built. Superman is working on a better version. I can handle all the incoming email now, but certainly not another huge surge of mail. I don’t believe the right approach is to give you the pgen robot on an individual level. A It doesn’t build the larger steamroller. B. I’ll be super-stormed with technical emails on the robot.

14. One of the funds would be a juniors fund. Obviously there wouldn’t be any games. All would be transparent. No derivatives, no “but we’ll use 20% of assets for my special surprise”.

15. What the robot does that a human being can’t do, is it buys and sells at much tighter increments. In the bullion market you can literally buy gold every 10 cents down and sell it every 30 cents up with a portion of the fund’s assets, with the robot. You can’t do that as a human being. Most of you are business owners. You know that huge amts of money are being MISSED every day as gold moves up and down. This isn’t day trading. There are no stoplosses and no leverage. It’s about accumulating ounces by buying weakness and selling strength. Bullion falls to 1120.10 and doesn’t rise to 1120.40 there is no sale, but the bullion is held. The reality is that money is power and more money is more power. You can run more pyramids with more money. In a fund situation you can apply a limited amt of personal capital, and yet get all the benefit of the tools that are ONLY available to a huge amt of money.

16. Yes, there can and will be some “action funds”, where items like options, leverage, stoplosses are used. I’m not going to ignore the requests of customers for an item, even if it is lotto tickets. But that’s not going to build the gold steamroller. That’s going into battle against the banksters from a foundation of cardboard. Not a pyramid of gold bullion. Just as you put $10 in a lotto ticket, not $10 million, the same will apply to the funds. The lotto ticket funds get lotto ticket money. The foundational funds get foundational money. Common sense. Too bad most fund managers think an upside down pyramid is a foundation. They would sleep a lot better. “My lotto ticket is solid gold!” Sure it is. There will be a clear separation of the “play funds” from the steamrollers.

17. I mention Patton for two reasons. First is the market. Knowing where you sit on the scale of the coward in the hospital to General Patton scale. Know yourself, and assign risk capital to your market battles based on that understanding of where you sit on the scale NOW, not where you want to be. Some investors get indignant when I point out their greed or fear directly. It’s a mechanical act, a TOOL to maximize reward and minimize risk, not a moral judgement. “How dare you say that to me, do you know who I am?” Yes, somebody with “Mr. Big” painted on their mirror. And a market account dripping with real blood. Paint Mr. Little on the mirror and Mr. Big will appear on the account statements instead of Mr. Corpse.

18. The second reason is that the road to a series of bullion banks starts with a series of successful funds. I’m in talks with a number of you. One of you owns hundreds of kilos of gold. Another has 2 doctorate degrees, for example. From a business perspective, a pie can be split up only so many ways before 1 player is not being fairly compensated for the value they bring to the table. The answer is to have multiple pies, not fight over the split on one.

19. I’d like you to got back to point number 4 to understand what I’m talking about with the General Patton analogy. To execute on the total vision of changing the nature of govt from a power-crazed blob to a more humble entity, requires a number of funds and then a series of banks. The vision I have is executing on a series of funds while sharing information between the leaders of those funds. This reduces risk and maximizes reward on a whole lot of fronts. I have an ability to look at an existing business and see 10 times more revenues by changing it to INVOLVE the customers. That doesn’t work with all businesses. It does here. If you are greedy or terrified, you will find I close the door very quickly and send you to the mirror. Whether you accept what you see in the mirror or not is up to you. I’m not here to judge the morality of greed or fear, I’m here to manage it into the highest possible reward with the smallest possible amount of risk. Managing greed and fear involves understanding how it exists within yourself in great detail. Those who can’t handle the truth will never keep serious money they make in the market, if they make it all.

20. The combined net worth of all of you is in the many billions. Some of you are well-connected in the bank and fund communities.

21. The other writers in the gold community operate like gold stock mechanics. That’s fine. I operate on: The Gold Vision. Their focus is on making themselves into a sort of product, which again is fine: “I alone understand what these stocks will do next, without my unique information on this stock you won’t make money”. In many cases, they, alone, DO understand the next move for that stock. Absolutely outstanding analysis in many cases. That’s not what I do. I have a maniacal obsession with my subscribers making money CONSISTENTLY FOR LIFE with NO information at your fingertips except the current price of the item. I want you to be in a position where you can be thrown onto the market battlefield of any item that trades, and come up a winner.

22. Most fund managers are well-educated. Many have teams of highly trained economists. But once they take on a huge position, managing greed and fear becomes 99% of what determines their gain or loss, which they don’t understand.

23. Listen very carefully to the words of the gold bear. Very few are winning market traders. Most of the winners simply don’t play gold. They are not real gold bears, they just don’t play gold. The number of actual gold bears that are consistent market winners is small. Many say I don’t understand economics and I don’t understand money. Maybe so, but here’s something I do understand: I bought gold into the day of the low at 905 and put others into gold there in MAJOR SIZE. 905 was the exact bottom of the last intermediate decline in gold. FEAR was rampant. None of us, including me, ENJOYED laying our buy orders into that weakness. I remember sending neutral Nellie an email in the 905 zone and nonchalantly asking, “what are your FEELINGS?” I got big a huge one word email: “FEAR!!!” I could sense that fear was VERY real. He bought anyway and has been shaving profits into this gold mighty-strength. I hold core positions from THAT EXACT LOW into 905. While the bears shoot their mouths about what gold is SUPPOSED to do, THOUSANDS of in the gold community have followed my actions and made HUGE money trading gold on the long side. Hundreds of you have reversed DECADES of being unable to sleep, failed market executions, and a host of other issues. When it comes to GOLD, you are: LONG AND STRONG.

24. You FEEL strong because you bought WEAKNESS. Don’t forget the source of your strength.

25. In the MARKET we are measured solely by the SCOREBOARD. In the MARKET, I am the WINNER. My gold bear economist opponents didn’t simply lose. I EXTERMINATED THEM. The only thing left of them IN THE MARKET is their MOUTH.

26. And to take care of that last problem, rumour has it, I’m likely about to bring on board the Graceland ship one of the heaviest-weight academic economists in the gold community. Who is a raging gold BULL. Maybe I’m a lousy economist. Let’s see how bad a General I am, how bad a delegator I am. Under my direction, I’m not going to just lay a beating on the gold bear economists. I’m going to cut them to ribbons, one razor blade cut at a time into their SPINAL CORD, and give them a taste of what it FEELS like to buy gold stock into gold 680 into an across the board minus 70-90% price quotation, while questioning my sanity. Then I’m going to strip them naked and chain them to a pole in the centre of the gold community. A BULLY beats on a man on the buy in a situation like buying into gold stocks at $680 gold. Let’s see how big a smirk the major gold bears have on their faces by the time I’m finished with them. I know who they are and I know how they laughed at you while you burned at the 680 gold stake. The good news for you is that the gold bears I’m referring to are not reading these words. They are well known in the gold community and as I see it, they are INTERFERING with the gold community understanding the VISION of gold forming an integral part of government and promoted to the population as such. The fact that the President of the United States of America has yet to MENTION the WORD gold after almost a year in office, let alone at his inauguration, sums up the total disaster that is the ENTITY of government today. Those gold bears who like to fight, who like to laugh at your misfortune in the market when you are down instead of helping you, should remember the adage, “don’t wish for something too hard, you just might get it.” Smile Mr. Bear, you’re on candid camera, and next weekend you get to say hello to:

27. The Golden Razor Blade.

28. I’ve done a lousy job of marketing myself, yet I’m probably the fastest growing letter in the gold community. I’ve got help on that front now. A lot of the problem has been my obsession with handling the issue at hand that I see is the major issue facing you as an investor.

29. One of you, who I call “Mr. Wisdom”, sent me a video on the ex-president of Singapore. He noted the single most shocking event in his life was the speed of the end of communism.

30. The humbling and shrinking of the Gman Blob can occur just as quickly. My suspicion is that the players can who can execute on that action are around Ron Paul, but not necessarily immediately linked to him. The tactics would involve achieving a certain standardized tone in communication, and a consistent theme in political action that is basically a duplicating of the RESPONSE to PRICE in the market.

31. Speaking of the markets, here we go. Yes, I competed the week with victory, moving another gob of money to my bank accounts. On Friday, the USD/CAD was ringing the cash register WHILE gold was ringing it! That’s the SECOND taste of the “strong USD strong gold” reality that almost NOBODY in the gold community can get a handle on. Like I said, what matters is who rings the cash register, not who promises their economic VIEW will materialize. When you make a promise, you better be sure you can keep it AND be prepared to eat crow.

32. I mentioned that one of you is a substantial gold dealer. You BOUGHT gold futures this week as part of your “to the neckline we buy” play that I have been outlining as the greatest market play in the world right now. Your supplies have been RATIONED. These are gold SUPERBULL events. The BANKSTERS added 17 thousand gold LONGS as well as selling 10 thousand contracts into strength.

33. I mentioned the PLAYER-PROFESSIONAL aka the PLAYER-PGEN action as the ideal play to manage the MASSIVE upside possible reward against the fact the gold technicals are in nosebleed land on the daily and weekly so professional profit taking is also required.

34. THAT is the action of the banksters!!! The greatest traders in the world are doing exactly THAT! I stepped up to the juniors plate myself with a mini-plop of cash I took of [off] the PROFESSIONAL buy-sell table.

35. Just as a hurricane dies in strength when it makes landfall, as gold moves to 1200, the power of the head and shoulders launch pad will weaken. The current MAIN theme for gold is the head and shoulders PLAY.

36. I’ll give you 90% odds that theme will be replaced with: VOLATILITY. Likely beginning around 1200, but much more so in the 1300-1400 area. Once the target of the head and shoulders PLAY is done, the ball will be handed back to the professional from the player. Gold PLAYS are RARE. It is in your lap now. Take the golden apple and bite into it. But don’t create chart-based fantasies that ANOTHER fantasy PLAY sits in front of you right after this one. Only a 1-4 really good plays a year, MAXIMUM, present themselves in ALL markets combined.

37. The cause of the death of most traders is their addiction to trading itself. Picture a wound that won’t heal, oozing pus out. That’s the business owner/trader using stoplosses but hiding from the mirror. They pipeline in a steady flow of money to the market, but the balloon can never inflate properly because it’s got so many holes in it. The other supermonster play right now isn’t really a “play”. I define a play as a momentum event. It is a period in time where the risk side of the risk-reward equation [is] sees the odds of a win drastically increased in both time and price. Risk of total loss of your money never goes to zero, but it drops dramatically in these situations. The other bigmoney opportunity now is the trench known as: agricultural commodities. There MIGHT be a similar trench in natural gas. I am putting significant money into agricultural commodities like corn, wheat, soybean. I’m looking at rice as well, but I have not bought, simply because I’ve been too busy to study the situation correctly. I continue to accumulate natural gas. I think oil is going to $500 but electricity could be a game changer, and particularly because of a company called Zenn motor cars. I don’t own any zenn stock, and I get nothing out of Zenn, but you might want to take a look at what they are doing with ultracapacitors. Lockheed Martin is involved. Think big, whether zenn is a go or a dud, electric cars ARE coming. I mention this not so you buy the penny stock zenn, but so you are aware oil could experience incredible volatility going forward, a repeated series of the up to 147, down to 30 type action, on the road to 500. The point here is that a game changer could smack oil. Of course, an attack on Iran or nuclear weapons in the hands of Pakistan terrorists, could also be a near-game changer, on the upside. I simply feel more COMFORTABLE buying FOOD to zero than I feel buying energy to zero. I AM comfortable buying energy to zero, just not as comfortable as doing it with food. That’s a key point. Also, on the tactics front, in the futures market, I can shoot a lot smaller bullets with corn and wheat than I can with oil and gas. More bullets is better than fewer bullets. Always.

38. So I finish my report card for the week with another A on my trading, an A on anticipating the banksters’ Player-Professional actions as the ideal market action, an A on moving forward the vision, and a C on the newsletter. Not one of you reported doing anything in the market that I thought was a bad action. I suggested adjustments as always, but nobody did anything stupid.

39. If I can EXECUTE on posting the charts and videos over the next 24 hours that I know are important, plus power thru the correspondence that you’ve sent me, I think we’re all going to be facing Monday morning from a very powerful position. And just in case I’m wrong, I just had a priest in here praying that I do the right thing for all of you. At least, that’s what he told me he was praying for…

Thanks,

cheers

Stewart Thomson

Graceland Updates