Graceland Updates 4am-7am

Dec 1, 2009

1. Those of you looking for managed money situations, please send me an email and I’ll put you on the list. I was on the phone with leading fund guy at JP Morgan last night, he got his start in the gold pit. Very interesting synergies indeed. I’ve named him “The Golden Mole”.

2. Gold $1200 has arrived. [not in the spot market, quite] And the gold bulldozer has pushed another huge army of top callers who “knew” they had called it last week, into the gold blast furnace for INCINERATION while clutching their flaming dollar bills. Gold has rallied 75% (!!!) from the 680 lows. From 905 the top callers thundered forth with their “gold is way overvalued” calls while king price steamrolled forwards. Dennis the Gold Market Menace lead the parade, and now claims he’s long gold. Gold was way overvalued at 905, but now it’s a buy at 1200. Can I invest in your fund Mr. Partman? Here’s a quarter. Do you have change?

3. But, hey, so what if gold has now rallied 300 dollars upwards from their failed analysis point. They will be top calling, and you can write this down, all the way to thousands of dollars an ounce, and costing you money, and more importantly, ounces….all the way there. If you listen to them.

4. Shave profits off into strength with great care. Don’t play axe murderer with your gold. The gold bankster police will give you the death sentence if you do. Remember that I typically sell 2% to 5% of my gold into every $50 -$100 rise. I’m more professional than player, but I did tweak my pyramids as gold began its rise towards the 1033 neckline area when it broke out of the symmetrical triange just under 1000. 1200 is a significant achievement, and those of you who were burnt in the bankster ovens into 680 really should be shaving some off the table as the gold rocket soars. Shave your gold whiskers into price strength with a gold razor. Not a top calling chainsaw. Be an artist with your gold sculpture. Not a vandal.

5. If you want to play top caller, you need to trade like: wham, bam, thank you sir. You can’t just lay in a bunch of short positions or dump all your gold in the garbage can, and then expect some squiggly wiggly micro mind chartist to power you thru the greatest gold bull market in history, while you have No Gold.

6. I’m going to be starting another website, Graceland Juniors. The most knowledgeable hardcore subscriber I have in the juniors arena, an ex Lehman broker, the one most equipped to handle it, unfortunately, doesn’t really want to do it, probably lacks confidence, and I believe that is related to that fact he has trouble with the buy and sell tactics. Some of you are very knowledgeable about the actions of companies. Leave the tactics in the market to me. Delegating specific tasks is the way to handle things. Many of you own factories. You don’t run all the machinery yourself…. When a real pro in terms of fundamentals and mining company INFORMATION hooks up with a tactics expert, the synergy could be astronomical. Also, what we are best at, we often downplay or don’t even really see how good we are in that area. Steamin’ Lehman, the subs need you, even if it’s just the odd posting with name witheld! None of you have the PASSION for the juniors this man has, not even close. What I have, is the ability to draw that out, the ability to draw out a person’s MAXIMUM PERFORMANCE in the area they love most and keep them boxed into that specific area of excellence.

7. The survey results are in. 40% of my subs want to arrest the banksters and 60% want instructions on getting the same free money the banksters get! I have the 60% side covered, or at least I’m working hard on it. I suspect the 60% number will grow as the economy continues DOWN. The problem with arresting the banksters is it doesn’t make you any money and won’t turn the economy around. In fact, if the banksters REALLY thought they were going to be arrested en masse, I GUARANTEE you they would blow up the system and ALL your bank deposits would be GONE. Suggestion, if you want to make the arrests, get your money OUT of the financial system, make sure you have delivery of your stock certs, THEN make the call for their arrest or you will be only punishing YOURSELF. “Hey stu, I don’t care, I just wanna see these scumbags BURN!”. OK, I like that attitude, if it’s real. My mind works on principles can over ride money. If you want to really fight the banksters, you can’t think about surviving. You have to go ALL IN or go home. My approach to the banksters is this: The banksters are a dry sponge. I’m water. Drip, drip, drip. EXACTLY how the Chinese people are dismantling the Chairman Mao idiocy. Unlike a fund, I can apparently talk about forming bank freely, with no quiet period.

8. The other surveys are also in. We’ve got your top 5 picks honed from the GDXJuniors index. Some of you have noticed that what is supposed to be a GOLD FUND is in fact now a SILVER fund.

9. Question: Why would Van Eck put a bunch of silver companies as the main stocks in a GOLD fund? I don’t know, and I don’t think I want to know, but it was a tactical error. The

10. The WHOLE GDXJ has a nice balance, but the largest holdings are all silver companies. I personally believe –vehemently- in compartmentalizing asset classes. Silver could totally disintegrate at the end of this metals bull mkt while gold stays strong.

11. I don’t know about you, but I personally want to also feel strong, not disintegrated, down the road.

12. Listen to me carefully here: The gdxj is all we have as a gold juniors fund right now. Yes, I’ve been slow putting up the “flying five”. But you all know by now that a lot of my “tortoise” actions produce a whole lot of clarity of action without that much delay. Most of you that bought the gdxj are in a profit position, and solidly so already.

13. From a SYSTEM type risk perspective, if silver blew up down the road, that event could, ironically, destroy the whole Van Eck juniors fund.

14. I want the ability to MANAGE RISK. Shorting silver stocks or buying put options on the stocks might mitigate some of the damage, but if the whole fund was smoked by the silver stocks crash, it could cause further problems. I don’t want to speculate on the extent of the damage that could occur (and this is years away, silver hasn’t even started it’s likelymega RISE, let alone the crash that could follow, so there is NO panic needed today, quite the opposite).

15. I want to be prepared, rather than just sit back and say, “oh, everything will be wonderful, the gold stocks will rise forever and pay giant dividends forever, and we’ll all live happily ever after”..

16. Remember when I asked me to send me YOUR juniors picks? I haven’t forgot about that. That WAYLAID me. I got so many emails with so many stock picks that I was steamrolled.

17. I kept all the emails. What I plan to do now is go thru all those stocks and run them thru more survey filters. What happened with the gdxjuniors fund is that it revealed itself as a decent fund if you leave it as is. But once you start trying to filter thru the fund to concentrate it into a smaller entity, huge weaknesses are revealed.

18. Where I differ from the other writers who have criticized gdxj is similar to what I did with GLD-nyse. For YEARS many wrote “that thing is garbage, it’s going to zero!”. The bottom line is that I traded it and booked profits consistently. But as gold began to trade more as a currency than a commodity, as the physical-paper gold issue became possibly more significant, I began to phase out trading gld-n.

19. I didn’t “quit it”. I FADED IT.

20. It will be the SAME with gdxj. Amateurland always leaps before looking. They act RASHLY.

21. Think: Gartman’s “Gold is way overvalued, I know it!” garbage at gold 930. He believed it was and he was DEAD WRONG. There ARE a lot of problems with gdxj but NOW is not the time to liquidate or avoid gdxj because of those problems. I’m a gdxj player NOW. Yes, the Graceland Juniors Index will be a reality, and no it won’t have any “but we can put 20% of your money in derivatives, ha ha!” nonsense in it.

22. Let me repeat, WE will build a junior index TEN THOUSAND TIMES better than gdxj, but if you want it ready for high noon tomorrow, then what you get is: toilet paper surprise.

23. If we ever do have a graceland updates party, it will be after gold has TANKED. IF we can all be in party mode while the gold price is in the tank, then we DESERVE to party. If not, then we should hold the party at JP Morgan. And ask the banksters to beat us up as punishment. If we can’t get to the point, as a group of consistently buying weakness, then WE deserve to be arrested. Not the banksters.

24. Having the banksters arrested will not lead to you making money as a price chaser. It would produce a total CRASH in the markets as only THEY buy weakness. Gold stopped falling at 680 because the bankster buying overwhelmed the fundster and gold community selling.

25. THAT is a fact.

26. Our enemy, dear readers, is our friend.

27. In the MARKET.

28. There will be “an open period” with Graceland Juniors. All “GU seniors” (hey I’m only 47yrs old, I’m not a senior…am I ?) will have a free full 6 month trial subscription to Graceland Juniors so long as your GU senior sub is active. Not 2 weeks. Not one month. SIX MONTHS. You backed me supporting GU Senior. This is my PARTIAL THANKS to you. (and common business sense I think) Done correctly, it will add value to the main GU site, as some of the juniors indexes created will be posted on the main site. So “Big GU” readers will get a substantial boost in juniors coverage.

29. By the way, I’ve asked the Brain to look at gdx and gdxj…

30. My signoff note about the gold juniors the other day bears repeating:

Charge !!!!

31. Some of you may have thought my discussion going heavy into the juniors was a flash in the pan play. WRONG. I’m here to WIN with MINIMAL drawdowns. Goldland had their chance with 90% drawdowns. Now its my turn to play with the juniors gun. Bear with me, while I mould this into a MILITARY MACHINE FOR VICTORY. The past few months have been about ESTABLISHING a lot of dots. Now it is about CONNECTING THEM.

32. Attention all blown up US dollar bottom calling bears: The daily RSI on the CBONE, the Canadian Dollar AND the AUSSIE, is only at the 50 level. If YOU want to pretend it is overbought, fine. Keep painting your RSI mirror with 90 numbers, maybe they will jump onto the chart somehow… I just rang the Aussie cash register this morning while the top callers were broiled again. When you open your cash register and air and wet noodles comes out, how does it FEEL? Use the mirror to avoid that feeling…

Cheers,

Stewart Thomson

Graceland Updates