Graceland Updates 4am-7am

Apr 12, 2010

1. I believe the “euro to zero” gang is correct. Except that it THEIR TRADE that is going to zero, not the euro. While all govt currencies have a 100% record of eventually becoming 100% worthless, my prediction remains that the fundsters who are short the euro will blow up LONG before the euro itself does, and maybe some fundsters get wiped off the map THIS WEEK.

2. The Euro gapped big and 2 full points higher last night and I’m sure the fund managers had an “interesting” sleep last night as their latest price chase is already on fire and approaching the margin call main gas tank. I think if we hit 1.40 they will look like the hindenberg on fire. The euro has surged a mind boggling 4 full points in just 3 trading days, from 1.33 to the 1.37. Regardless, don’t gloat if you bought alongside the banksters while they bashed it in the media, urging the fundsters to short it while they took the other side of the trade in ACTION. Just ring your cash register professionally with your pgen.

3. I sold more gold last night into the 1170 highs. We’re now up $85 from the 1085 “it’s all over” selling climax lows. Silver touched 18.50. Gold has risen for 8 days in a row! Kachingo, Kachingo, and Kachingo is the bottom line!

4. My prediction that the gold community would change from asking “what’s wrong here, it’s 2008 again!” at 1085, to “bring 1085 back so I can buy!” is already becoming a reality. At 1170, we’re just $45 away from making a NEW all time HIGH, taking out the 1225 area highs.

5. All hands report to the gold bull analysis deck for indoctrination, courtesy of the banksters. As price surges, the world’s gold investors, and those who are OUT, will eagerly surge forward wanting to know why price is surging, and want analysis to feed their “I should buy, I’m missing out!” primal urges. The time to give careful thought to the analysis of the BEARS is NOW, when you are in a strong position, not lying on your back being stamped on by the banksters.

6. THOSE OF YOU WHO SENT ME GOLD BEAR ANALYSIS INTO 1085 KNOW I SAID “I DON’T RESPOND TO BEARS DURNING PRICE WEAKNESS”, SHOULD RESEND IT TO ME NOW, AND REMEMBER TO ANALYZE THE ARGUMENTS OF YOUR OPPONENT FROM A POSITION OF STRENGTH, NOT WEAKNESS.

7. On the NEXT HIT on gold, then look at the mining reports, the gold superbull analysis. Do what it takes to stay positive on price weakness, and do what it takes to manage your greed into price strength.

8. Looking at the Dow, we’re at another new high there for the the move from Dow 6500. I’m 2 cents away from my next citigroup kachingo at $4.60, and from driving another shortside peg into the Dow itself via the “Dow Dog” (dog-nyse, futures or stock).

9. The FXI-nyse, the Chinese stock market, is finally having a down day. The Renminbi (RMB) is on the verge of a multi-year bull market, and emergence as a major currency. China’s last paper currency went off the board, and this one will too, but there should be a multi-decade upside move that would precede that action. The RMB is likely to become A reserve currency and/or a component of a world bankster currency. Not THE reserve currency.

10. Mr. Macro sees the RMB as a key core holding and the time is NOW to get yourself positioned. The public sees getting a load of junk bonds on a credit card as getting themselves positioned. YOU decide who has the more solid approach.

11. Obviously you want to buy the RMB before it is revalued and/or trades more freely. Better to buy an asset that sits in the trench for longer than expected than to show up years down the road, in the RMB price-chasing line with all the other lemmings blabbing “the RMB looks good, maybe I should switch my own paper money carcass into it, after all it’s only tripled against my own gman toilet paper, maybe it’s going higher, I’m missing out!” If you can’t take TIME IN THE TRENCH, you will never make big money in an asset. As a broker, the worst investors always said to me, “all I know is it’s done nothing for 6months and these other assets are rising! I want into something that’s moving NOW!”. They want, they need, they demand. Blah, blah, blah. The “terrible twos” applies to the character of 2 year olds. And most investors. Rats on the price chasing wheel.

12. Wheat and corn and other crop markets are not markets for 2 year olds. They are markets where MONEY MONSTERS like Jim Rogers and T-Rex are in vast accumulation mode. Let me repeat that phrase so it really sinks in: VAST ACCUMULATION MODE and doing it here and now. I absolutely believe that most of the world’s financial advisors think FOOD is a risky investment. When oil was $10 Jim Rogers was called a “dumb old man” and “senile” by vast numbers of advisors and investors, as he not only bought, but made oil far and the away the number one holding of his commodity index. Major publications were predicting $5 and $2 oil as the glut was “endless”. Now he’s a senile and dumb old man for buying wheat in a glut and natural gas in a glut.

13. Earth to all investors on mars: If you are a momentum player, you won’t make any “big fast money” accumulating assets like wheat and corn and gas, any more than you made any big fast money accumulating gold as it fell from 400 to 250. What you will do, is accumulate WEALTH. I’d rather be ELECTROCUTED than be forced to buy junk bonds and hold them for the next 10 years than buy wheat and hold it for 10 years.

14. Hands up everyone who thinks following gold’s uptrendline now for a “breakout over 1225” is a better strategy than accumulating it between 400-250.

15. This is the ERA of gold. All markets revolve around the gold punisher, and that theme will only INTENSIFY over the next 12-24mths, and drastically so.

16. One of the banksters’ most powerful entities, the BIS, the bank for international settlements, has released a report outlining the EXTREME dangers of the Gman’s spending habits.

17. The crisis is not over, sorry to inform the public, but it is only just starting, and the BIS endorses the absolute powderkeg I believe we are all sitting on, in terms of the very viability of ALL paper currencies and the wave of monetization of GOVERNMENT DEBT.

18. ALL commodities appear to be setting up more skyrocket rises to take out their previous all-time highs, because the Gman has essentially reached the saturation point with his spending, the point where HE begins to IMPLODE.

19. Jim Sinclair has posted the BIS report on his website. I’ll post it on mine later today. It is THE most important document on the dire condition of all the major govts of the western world.

20. Write this down and paste it to your computer: By the time the banksters put their “all currencies are on fire!” show into high gear, YOUR NEIGHBOURS will be thrown into a fit of sheer terror as the paper currencies are lit on fire by the gold punisher, and the bond markets are ravaged. The average person is facing a FIRESTORM and in the ultimate stupidity, is not only selling all their gold, but doing so at the pawn shop! Many in the gold community, if you can believe this, actually think the public is NOT selling any gold at the glorified “cash for gold” type operations. They say, “the people wouldn’t be that stupid”. I say: They ARE that stupid, and much stupider than that, as will soon be revealed.

21. Meantime, silver eagle sales from the US mint hit an all-time record high. Those that understand the crisis are taking action, but the vast majority are pouring gas all over themselves and the banksters ARE coming with the match.

22. The governments are not taking any responsibility for their horrific actions and are employing some highly suspect accounting in regards to trillions in future liabilities. If you read the BIS report, you’ll see just how strong the language is being used by the banksters. To create a global government, you need to “break” confidence in the very viability of the concept of national governments. I believe that campaign is underway now. The banksters are being very aggressive. They know the Gmen are slobs, and slow to act. I think this ends with the public in a wild rage saying, “listen to the banksters, they told you to cut back and you didn’t, now you’ve impoverished us, and the only solution is to back the currency with gold, but you have so little gold left, and we sold all ours at the pawn shop, that new gold standard may only lock the currency at a horrifically low level. We’re done for!” Correct.

23. The coming bankster attack on the interest rate markets could get very, very ugly. The 30 year t-bond market is the “king daddy” of the interest rate markets, but the banksters could inflict horrific damage on the average person without even touching that market. If they attack that market too, it’s basically lights out for the average person financially. Do I think the 30 bond will be attacked? Sadly, yes I do.

24. Bloomberg reports mass institutional money manager belief that higher rates are “inevitable”. We are not that far away from a possible collapse in confidence in the viability of govts and their currencies, by institutional money managers. Any money manager reading the BIS report has to be concerned, at minimum. The situation is potentially much worse than 1929.

25. I read thru a number of the gold writers last night and this morning. The bulls are back, putting on their price-chasing costumes as I write this, ready for action on the buy. I felt a twinge of greed myself last night. Remember that investors like Sad Sack have bought nothing while watching gold soar $85, and nor did they book any profit.

26. Theme for this week? Focus on GIVING. Giving up some of what you have for the next guy or gal. Work on getting into the mindset that you WANT to miss out on some profits. “I sold some gold at 1065 and it’s now 1070, good, that means I didn’t barely escape alive before it tanked. I’d like to see it at 1075 to show I sold well before it did fall, I don’t want to be in the habit of jumping out of the car right before it flies off the cliff.”

27. Team non-confirmation has thrown in the towel on their latest Dow non-confirmation wiener trade. I remind you that Dow Theory is about CONFIRMATIONS, not non-confirmations. What I’m seeing from goldland is complacency about the Dow rally, while almost unanimously calling it a “bear rally”. How a market that rises 70% is a bear rally is an interesting concept. The economy is in a bear market. Not the stock market. IF, however, I believed the stock market was in a bear rally, I’d be AGGGRESSIVELY shorting it into strength right now. I’m interested in the stk mkt as an asset, so I’m shorting it in moderation with a pgen while running a larger pgen program on the long side. I’m in the camp that the next move of significance is going to be a significant down move, a correction in a bull market fuelled by overall low interest rates, a general US dollar bear mkt, and quantitative easing. Upwards momentum has slowed to a crawl. I continue to see statements made that the stock market did not offer VALUE at Dow 6500, in terms of the price earnings ratios. Companies like Alcoa and GE featured PE ratios in the 5-8 range with huge yields. That is OUTSTANDING value.

28. Whether a new bear starts, or even a death spiral, we can’t know. But the market continues to take out one intermediate high after another. One guy claimed the market has been very technically overbought since the summer of 2009. Maybe on a 2 second tick chart, yes, it was, but many of the monthly chart technical indicators have only just started giving buy signals now!!! While that often occurs as we approach an intermediate size correction, the fact is that in the summer of 2009 the market was drastically oversold technically, not drastically overbought! We are now fairly overbought on the daily and weekly charts, but not on the monthly charts.

I think we had a good week last week, and things are looking even better for us this week. Just be careful out there as the gold writers are putting on their gold bull uniforms again, while the trillionaire banksters step up their gold selling in action.

Are You Prepared?

Feels like a Friday, and it’s Monday!

See you out there!

Thanks