Graceland Updates 4am-7am
Email: s2p3t4@sympatico.ca
May 7, 2010
1. He’s alive! Picasso is alive!! And he works for Bloomberg News!!! I’ll give some more discussion of “the great accident”, as the mainstream media has so eloquently painted it, later, on the website. I’ll leave my competition to argue about the paint and brushes. Yesterday’s BOTTOM LINE is this: It was cash register ringing MAYHEM at GRACELAND, that was the ONLY thing that was OUT OF CONTROL around here. I hope the public enjoyed the fruits of their latest price chasing labours in the stk mkt. In other price chasing news, after being blown out of the gold market on the decline from 1225 last december, Sad Sack arrived again yesterday in a dog-panting frenzy, LITERALLY, to BUY gold. To buy what pros like GoldLion-and hopefully you- were selling. (for every seller there is a buyer, by definition) Sack bought as gold soared into exactly 1200, and after missing the entire action from 1045 to now, and he lasted about 30 minutes before booking his latest loss, his latest “into the garbage goes my gold”, into 1190. Nobody can deny he has passion…Team stoploss does have passion.
2. Passion for…the garbage can.
3. Enough blab. Let’s get right to business. Here’s the gold juniors chart, via the GDXJ. I’ve highlighted the key HSR levels in blue. After hitting my “enhanced selling” HSR $29 area, most of you are back in refill mode now. Click here now to view the enhanced buy zones, current and prospective: GDXJ Daily Chart
4. The one thing nobody wants to talk about, here and now, is…silver. The industrial component of silver made itself apparent yesterday. Weakness must be bought, and the best traders I know prefer buying silver to gold now, in terms of possible intermediate term upside reward. Think about my words very carefully. Silver is a no-time-limit call option on gold. I own silver. Silver is not a replacement for gold. The 1970s were the time of silver. This is the Era of Gold.
5. Here’s a look at the Daily Silver Chart. Key Buy Zones.
6. Remember that price must fall down on to those blue lines for you to buy, not rise up to them. Most analysts will tell you here and now that “the uptrend line has broken, it’s a sell”. Here’s my message to those analysts: I eat broken uptrend lines for breakfast. All that broken line tells me is I might be lucky enough to see an intermediate decline in price, so I can buy more silver at lower prices. Focus on placing your buy points here and now, not hiding in your closet blubbering that “it might fall down more, I’m losing!”.
7. Respond. Respond. Respond.
8. Respond to Queen Price.
9. I went to dinner yesterday with the president of a silver company, one that all silver stock investors know. The dinner was $500. I paid. They have almost as much gold as they have silver. I told him, “When gold is locked to the US dollar, silver will not be. Silver will crash. You will need to sell [hedge] your silver production, not now, but you need to stay on top of this issue and do what needs to be done and sell into strength when it comes bigtime.” I believe massive strength in silver is coming. Subscriber “GoldLion”, the greatest juniors stock trader in the world, believes the Dow could rise to 50,000 or 100,000 as the banksters’ nuclear-armed currency crisis aircraft carrier… takes aim at the United States Of America.
10. The Silver Parabola could make the Gold Parabola, which itself stands to boggle the mind, look like a wet noodle. The difference is, 99% of silver investors will lose ALL their money when it ends. There will be no lock of silver to the US dollar, nor of the stock market, nor any other commodity. There will be a lock, alone, of GOLD to the US dollar. Without that lock, civilization as we know it… goes Quasi-Caveman. Nobody knows at what exact price the lock will occur, but we know that official estimates put the US govt gold supply at ¼ of the levels of the Roosevelt era, when the supply of paper money was drastically lower, so it could be anywhere from $1500 to a number in the many thousands of dollars an ounce. My prediction is $6000, but I wouldn’t bet money on my prediction one way or the other.
11. I believe “the great stk mkt crash” the gold community wants to see in the stock market, WILL happen. But it will probably be from tens of thousands of Dow points higher than where the Dow is today. The question is: Are You Prepared?
12. This crisis began as an OTC derivatives crisis. Then there was the exchange-traded markets crisis. Now we are moving to the sovereign debt crisis. This is Grand Finale the banksters have saved for last. Unless, that is, you count them laughing uncontrollably on the floor, as millions of Elmer Fudd public investors stand in bread lines together with their golf ball advisors, selecting their long term portfolio holdings of soup, crackers, water, and brown and white bread crusts, for solid diversification of risk. I’ll leave in your hands, the debate on how the Grand Finale plays out.
13. Most in the gold community are focused on the private economy, thinking “there is no recovery”. Bottom Line: the stock market bears are holding a private economy failed recovery watergun in a fight against a national govt money printing firehose.
14. The gold bears. The stock market bears. The general commodity market bears. These three groups stand to be vaporized, first by the quantitative easing firehose, 2nd by the paper money devaluation [Currency devalued to fiat paper has already happened. Maybe he means, e.g., COMEX can pay in paper if it can't deliver the physical commodity on a futures contract.] firehouse, and if there is anything left of them, 3rd and finally by the govt money printing firehouse.
15. I’ve followed Jim Sinclair thru the Harry Schultz Letter, for 40 years. I started reading Harry Schultz when I was 8. Let’s assume I’ve picked up a little information over 40 years. These were the two “head men” of the last gold bull market, outside of the banksters themselves. When “Big Jim” recently said gold was “days away” from a massive move to the upside, most said “no, it’s 2008 again, he’s wrong again, he’s a loser, gold stocks are gonna crash, sell!”. While I drew your serious attention to his “prediction”, the bulk of the mangled gold community said: Bullcrap!.... Well, let me ask those in the gold community who liquidated all their gold stocks into 905, 980, 1025, 1045, 1085, and now 1156, let me ask them a question. How do you FEEL, do you like the BURN? Get used to that FEELING, because it’s just started. The bottom line is you need to get into somebody’s mind to know which predictions carry weight and which are unlikely to play out. It’s a complex and long process.
16. The Gold Parabola theme may or may not be underway. What IS underway, is the Gold Volatility Parabola (GVP), which is the only theme that will be more dominant than the Gold Parabola (GP) monster theme, going forwards. Which brings me to my next question: Are You Prepared? If you have a prediction of where the next $100 move for gold will be, please throw it in the garbage. Thank-you. Focus on being prepared to mentally stomach regular daily $100 price gyrations. Decide now, if you are in gold as a member of the gold fan club, or to make money. If you are here to make money, please view this chart with the current actionable HSR (horizontal support and resistance) levels highlighted in blue:
18. SGOL’s price is 1/10th of the gold price. The first HSR corresponds with the 119.80 area, approximately. That is equivalent to 10x 119.80 = $1198 gold.
19. Having sold at the top of the market in the 1980 gold bull mkt, I can tell you that one of the great errors made in a Parabolic Event is, the investor keeps waiting for “the correction”.
20. Look closely at that chart. It is a 60 minute chart. Waiting for a correction and strategically placing orders to buy weakness in a pyramid formation, are not the same thing. The great tactical error when dealing with a Parabola is the investor becomes convinced prices must retrace greatly before they should buy anything.
21. One of you, who I’ve nicknamed “The Rock”, because of your unbelievable ability to maintain your cool under pressure, had your final sell yesterday at 1211 on a buy on weakness from 1209 into 1202. You all need to dig deep and find the courage to stay on the buy on weakness, SYSTEMATICALLY, but keep the size tempered so you don’t blow up. If you can’t take a surprise $100 gold price GAP against your positions, you are in WAY TOO BIG.
22. Those of you using my exclusive pyramid generator will find it of exponentially greater value and power going forwards, as team “gold price predictor” gets mauled to financial death by GVP. The Gold Volatility Parabola. To be blunt, you’ve only had an appetizer taste of what the Pgen does. It’s time for the main course, served with HSR trimmings! Subscriber Goldblood in England by my estimation yesterday got, in all seriousness, an aproximate 5% taste of the coming machine gun style action of his gold pgen cash register, and he termed the ringing yesterday “out of control”.
23. Here’s a look at the gold weekly chart. While the daily chart is showing conditions a little overbought, the weekly chart is flashing a “squadron” of buy signals on the oscillators.
24. Gold Weekly Chart. While the short term Stochastics and RSI is overbought, the long term Stochastics and MACD and TRIX oscillators are flashing monster buy signals, the type that occur during parabolic moves.
25. Do NOT trade your core positions. Don’t even THINK about doing that. If you can’t grip them tight enough in your hand, put your hand in a vice and yank on the lever so there’s no way one ounce of CORE gold gets sold now “to get in cheaper later”.
26. I told you all as the year started: “The theme for the YEAR, for 2010 is… THE GOLD PUNISHER. Gold goes on the aggressive, goes on the offensive.”
Any doubts on that now? Well, Gold has been working with it’s POPGUN weapons so far. Wait til you see the rest of the Punisher’s arsenal….
Cot Reports and Report Cards update to be posted on the site later this evening. Something tells me I’ll be handing out a lot of “A’s”…
Now, let’s hit the grid. The gold grid. See you out there.
Thanks,
Cheers,
S “GVP” T.
Thank-you
Stewart Thomson
Graceland Updates