Graceland Updates 4am-7am

May 14, 2010

1. Friday. Report card day. Gold is surging again. I’m setting up a new newsletter together with my right hand man, “Gold Artist” who trades like Jim Sinclair’s father. Not with technical or fundamental analysis. He trades by FEEL. Those who subscribe will see Graceland’s Proprietary Gold Trades posted there in REAL TIME. I’ll be adding more such sites with other traders when they are ready, and keep you posted on the action. I may set up some live gold Pgen prop (proprietary trading) accounts as well on that new newsletter. It will be open in a week or so. You’ll be able to follow the trading action yourself with gold futures or gold ETFs if you trade smaller. There are no booked losses. I don’t burn paper money in the fireplace, so likewise I don’t book losses in gold. Of the two actions, burning paper money in the fireplace and selling gold at a loss, I consider the latter the stupider action.

2. Earth to the paper money wiener patrol on mars: Paper money has lost 98% of its price against gold. Here’s my statement to the paperbugs: Why don’t YOU get off your knees and stop praying to the Gman, and think seriously about selling your Gman toilet paper at a loss for gold, NOT THE OTHER WAY ROUND. Sell MY gold at a loss for toilet paper money? NOT IN A BILLION YEARS. One of you, who has an MBA from HARVARD university AND is a medical doctor, agrees with me 1000%.

3. I book wins. I don’t trade gold for paper money at anything but a profit. I want you focused, at least in the beginning, on where we’re buying and selling, not on how much we’re buying and selling. It’s a lifetime marathon for adults, not a 12 second sprint race in the kindergarten. We’ll show you any limit orders as well as all fills and we’ll have a “trade placed” email notification service as well to keep it timely. And yes, it will be FAR lower priced than any other winning trading service out there. Most charge $300 to $1000 a month. That won’t be the case here. I operate on the Coca Cola model. Some would say that company has been successful at managing risk and reward….

4. I know most of my subscribers this week are suffering from “Pgen cash register operation exhaustion”, but sorry, no rest for the wicked! Here you go again. Kachingo Time! Gold hit $1246 this morning, up almost $20 from yesterday’s lows. Perhaps better described as yesterday’s, “I want my mommy, gold is falling, sell me out!” lows.

5. “Do you have any clue how much money the banksters made in gold today, what they just did to the puppets?”

6. –Gold Artist, May 13, 2010.

“I don’t even want to know what I made in gold already today” –Gold Artist, ringing the gold register into 7am, May 14, 2010.

7. There’s no question that I’m a little disappointed when I look out into gold land, and read the latest postings from the writers. Then again, I got a new Barbeque, and I need a good supply of wieners, so I really shouldn’t complain. The bottom line is that while there’s some bullish enthusiasm for gold, the general focus is on various global problems and talk of the “crowded” gold trade.

8. The only CROWD I see is a bunch of COWARDS that are AFRAID of GOLD. I see nervousness and fear. NOT greed. I see ANALYSIS, not ACTION. Thanks to a number of you for picking up on JP Morgan drawing the significance of the break above 1225. The gold bear clowns have got the entire gold bull market all-wrong, except for the odd micro blip call here and there. They raced forwards yesterday like a parade of lemmings in clown suits, each trying to be the first clown to bash down this EPIC statement of GOLD POWER from the largest bank in the United States. The JPM UMLIMITED DEMAND FOR GOLD statement [Here is one reference – FNC] is arguably the final nail in the gold bears’ coffin. When I look into the bears’ eyes, I see ZOMBIES.

9. I’ve added a number of key news feeds to the Graceland site. They are on the left hand side when you log in. These are condensed feeds from a lot of the sites you visit regularly, and as they are posted on those sites, they show up here at Graceland, but in a condensed time-saving format. Click on the headline and you’ll get exactly what is posted on the sites themselves. The Graceland feeds section, again, is on the left hand side of the site and is fast becoming THE one stop shop for all the key gold news.-

10. Key point: An HSR band (horizontal support and resistance) is not a top or bottom turn calling point. A turn might occur there, but that’s of minor importance. The more significant the HSR band is, the greater the amount of supply and demand that is going to occur there. Gold 1225 is a hugely significant point, and, horrifically, only JP Morgan has noted the “ultimate significance” of price rising above there.

11. The 1225 area is a now a key demand point. That does NOT mean YOUR tactics are to “sell it all now, so I buy it all back cheaper at 1225”. That’s a clown act. 1225 is simply an area where additional capital should be allocated. In the futures markets the area is really 1227.50, and big surprise, yesterday’s low was almost exactly: 1227.50 ! The gold bear wiener patrol bought nothing, and are being left in the dust as the Gold Parabola takes shape, takes action.

12. If we go above 1250, that 1250 marker itself becomes the new demand line, if price pulls back there. It’s a small point, so your pgen allocations really wouldn’t be tweaked much there.

13. You are likely never going to see your buys filled at all your pgen points, nor is price going to pull back to every HSR point, or rise to it. That’s irrelevant to making money.

14. “But I don’t understand, T-Rex, why do you think silver could blast above $30 and gold juniors go parabolic?”

- Elmer Fudd Public Investor.

15. “I know you don’t understand, Mr Price Chaser, and that’s why I’m richer than you are.”

– Possible answer, from billionaire paid subscriber T-Rex.

16. Make SURE you watch the silver video I posted on the site last nite. While there is SOME HSR between 21.50 and $50, it’s not very big until $50, and you need to keep in mind there is nothing but outer space above gold bullion’s CURRENT PRICE.

17. Silver is like a call option on gold. With no expiry date.

18. Silver land is focused on $21 as the next target. WRONG. $21 is an HSR partial profit booking point, and a pgen profit booking point. It’s not a “target”. The TARGET is $28-33 (maybe $37) for THIS LEG if we cross $21.46, and the fact that we’ve already taken out the $19.50 area HSR highs augers very strongly that we’re now gearing up for an assault on the $21 area.

19. Remember when I told you as gold rose up into 980 that the bull continuation pattern had a high probability of kicking in. That’s what exists on the silver chart; a bull h&s continuation pattern. Is it as good as gold’s was? No. I termed the gold pattern “Michaelangelic”.

20. Remember, however, that silver stages its big action in the later stage of a move. The gold community is thinking TOO SMALL. They are looking at $2-4 moves in silver. That’s not correct here, in my view. The gold h&s pattern is ruling the markets, and if GOLD is headed towards $1400 as a target, it makes sense that silver could stage a massively bigger “slingshot” move.

21. The fact that the silver head and shoulders comes AFTER the gold h&s in TIME fits PERFECTLY with the GOLD PARABOLA THEME.

22. Again, because silver is like a call option, you don’t need much, and most silver investors will be wiped out when it crashes later. My strongest suggestion to manage your greed is to sell silver into periods where it outperforms gold, not for dollars, but swap it for GOLD.

23. You remain IN the game, but you aren’t a shooting silver start that explodes.

24. The gold daily chart and the weekly chart have entered overbought status as you’ve engaged in cash register mayhem. I’ll post the morning gold summary in a few minutes, with some specific range Pgens using the 1156 selling climax lows as a base point. I’ll post some aggressive, moderate, and conservative examples to get you….

25. IN THE GAME.

26. Lastly, the LOOK of the gold weekly PRICE chart is PHENOMENAL. I’m in absolute agreement with JP Morgan that the rise over 1225 has ushered in UNLIMITED DEMAND for gold and fits with my steadfast view that this is not just the TIME for gold. It is the gold ERA.

27. For the gold price to do all the bears want it to do, although anything is possible in any market…gold now has MASSIVE support. Picture a wall that in 120 FEET thick. The price WALL between the 1045 selling climax and 1156 is about $120 THICK. It would take an enormous amount of selling to pierce that, and even then, you almost IMMEDIATELY arrive at the massive weekly head and shoulders pattern that offers an even bigger WALL OF DEMAND between 860 and 1033.

28. You have asked for gold protection. Your greatest protection is the massive walls of DEMAND that sit directly below you on the gold BATTLEFIELD. That head and shoulders is BUILT with Chinese physical buying.

29. Am I sitting on a pile of cash? Yes. Have I sold gold items into this strength? Yes. Am I worried about gold descending to lower DEMAND bands? No. I’m maniacally obsessed that all my BUY ORDERS are in there so I don’t miss a single BUY whenever the next bout of price weakness.

30. This is the year of the gold punisher. YOU are on the AGGRESSIVE. Look below you at MASSIVE nuclear-sized HSR forces lined up on the gold price gridlines. Think offensively, not defensively, because the Gold Punisher IS on the offensive. Thinking “buy weakness” is not necessarily thinking defensively. It’s a subtle but key point, one you’ll need to understand, as we enter the Gold Parabola….

See you out there.

Cheers

Thank-you

Stewart Thomson