Graceland Updates 4am-7am
Email: s2p3t4@sympatico.ca
May 26, 2010
1. One of you, who I nicknamed “Ironman”, sent me market surveyor Mark Hulbert’s latest piece covering the huge “shock” sentiment change in the stock market. Joe Blow stk mkt analyst has suddenly gone from recommending investors have 80% of their portfolios long the Nasdaq, to 45% short.
2. “The last two weeks have seen one of the biggest shifts from bullishness to bearishness among these markets timers that I have ever witnessed.” – Mark Hulbert. Market Surveyor, May 25, 2010.
3. Elmer Fudd’s analysts are telling him to wildly short the market here and now, to bet it falls. I’m on the buy. I wonder why…
4. Silver looks like it got blasted out of a cannon this morning. It’s up nearly $1 from last week’s lows. Gold hit $1210, now UP 44 dollars an ounce from the latest “sell everything now, because gold is going to zero, I know it is!” clownshow into 1166.
5. You have my statement in writing from last week, that buying into 1170 HSR and pgen marker, was “all that mattered”. Do NOT start chasing price here if you BLEW IT. You need to work on your mind. Work on getting yourself to buy when you feel LOUSY. And buy an amount that is smaller than you think is rational to start. Nobody out there feels lousy looking at gold today. I don’t, you don’t, nobody does. Today is modest sell day, cash register day. Not “I missed out, I better get in before price gets away!” day.
6. I endorse Richard Russell’s personal market ACTIONS. Because he’s an owner of aprox equal amts of gold and cash. He understands, with his market actions, that QE has yet to flip the light switch from deflation to inflation, thus the cash holding. Gold will not fall too hard in deflation, and soar during inflation, so he really can’t lose. I printed out his bear dow work yesterday that a few of you sent me. And gleefully put it in the shredder. Anyone who sends me bear analysis of anything when price is going DOWN in ANYTHING, will find their theories meet the same fate. Shred bear analysis; do not shred your buys into weakness.
7. I DO NOT RESPOND TO BULL ANALYSIS WHEN PRICE IS RISING, NOR TO BEAR ANALYSIS WHEN PRICE IS FALLING. ALL GETS SHREDDED. IT TAKES A CERTAIN EMOTIONAL STRENGTH TO BUY WHEN PRICE IS UNDER SEVERE PRESSURE. THE LAST THING I NEED IS ADDITIONAL PRESSURE WHEN I ‘M ON THE BUY IN SEVERE PRICE WEAKNESS SURROUNDED BY FEAR. LIKEWISE, WHEN PRICE IS RISING, I DON’T WANT TO HEAR ANYTHING ABOUT HOW GREAT THINGS ARE, ABOUT HOW PRICE “HAS JUST GOTTA!” KEEP RISING. I’M ON THE SELL AND I NEED EMOTIONAL “FOOD” TO KEEP ME SELLING WHEN I FEEL LIKE BUYING. SOME PRICE CHASER’S WIENER STATEMENTS ABOUT “NOW CHINA IS REALLY GONNA BUY!!!” AFTER GOLD SOARS $400 AN OUNCE IS THE VERY LAST THING ON THE PLANET I WANT TO READ. ALL BULL ANALYSIS FROM PRICE CHASERS DURING RISING PRICE, NO MATTER HOW “RESPECTED” IT IS, GETS THE SHREDDER.
8. DO WHAT IT TAKES TO WIN IN THE MARKET, AS A GOLD STREETFIGHTER, NOT WHAT IT TAKES TO LOOK GOOD AT THE SEMINAR, IN FRONT OF A BUNCH OF GUTLESS PRICE CHASERS WEARING ANALYST & INVESTOR MASKS. THE BANKSTERS SEE THOSE IDIOTS AS MARKET DOGFOOD. BECAUSE THAT’S WHAT THEY ARE.
9. Hulbert notes that it was May 4 (dow at 11,177) when Elmer Fudd market timer was last 80% long the Nasdaq. That’s less than 100 dow points off the maximum peak. Now they are saying go short?
10. Don’t create what you WANT in the market. That’s physically impossible to occur. Have the patience to let it develop. Goldland has NOT made back a FRACTION of all the money they LOST shorting the stk mkt from Dow 6500 as it soared, with their put option and short futures play recently.
11. There WAS a time to short the market as a major play, and that was in 1999 and in 2007. The latter coming with Morgan Stanley’s TRIPLE SELL SIGNAL that is almost NEVER WRONG, and almost totally ignored by their own clients!!! A vastly bigger shorting opportunity is coming, bigger than anything you have seen, or dreamed about for that matter, but people, can we all wait for the market to hyperinflate FIRST, before putting on the “big short”???
12. Don’t fight the fed. That’s what the Dow bears are doing. Fighting the fed. “Yee ha, I’m a professional fighter, I know I am, put me in the ring against the champ, just gimme another beer and I’m ready to fight, I’ll lay a beating on that guy!” –Overweight Drunk in a bar watching a prize fight on big screen TV.
13. Don’t be a market drunk fighting the Central Bankster champ, in the market. You will lose ALL your money in TIME. The fed is battling deflation with INFLATIONARY ACTION. IN THE MARKET. Chopping rates and QE are inflationary actions. The fed has MUCH BIGGER weaponry that they can, and WILL, unveil. Now is the time to BUY the market. It fell a BIT, so you buy a BIT. Don’t dump gas on yourself and tell everyone the market is going to burn. A time will come when the fed moves to DEFLATIONARY ACTION. That’s YEARS AWAY. Raising rates, chopping the money supply, etc. The bond bears did the same thing. “I got the top, short it big!”. “No, I got it, I’m the top timer, short it now, who cares if the Fed’s buying, get outta my way, I gotta make beeg mowney now!” How long has this charade gone on? For YEARS. Focus on BUYING the bond and locking in THIRTY YEARS of FREE MONEY from the GMAN, and do so AFTER it falls.
14. Don’t predict the bond price fall. Respond to it!
15. The US t-bond is a THIRTY YEAR bond. Not 30 day. No market timer is going to be able to compete with YOU, if rates soar, bonds tank, AND YOU BUY AFTER THAT OCCURS. Patience. The compounding is OBSCENE.
16. Meantime, gold is stomping on bonds, in terms of returns.
17. I said this week I would cover the Dow and the bond markets as the central themes. A big misunderstanding in the gold community: There is an idea that the mainstream analysts are “all idiots”. That’s not accurate. I’ve mentioned discussing the “coming 1929” with Arthur Ziekel, head money manager for Merrill, back in 1999, which he absolutely believed was coming, and did.
18. Morgan Stanley has issued various and extremely rare “triple sell signals”, calling exact tops for decades. Most brokers at these firms don’t pay attention. They are focused on asset gathering, and the fact is that the OPINION of the top analysts and the BUSINESS the brokerage operates are related, but different.
19. Have the top firms engaged in misleading sales practises? Absolutely. Are some of the top analysts “idiots”? Absolutely. But the sharpest people at those firms DO make their opinions known, and it’s up to the brokers to contact the analysts and get their views. You can’t just read the latest research report and believe that must have all you need.
20. My bond trader friend, whose largest position is long USD against CAD, told me yesterday as I sold into 1.08, “I’d actually be a buyer at 108, I think we’re going to 113 to 120.” I agree that’s possible, but the fact is we’re down to almost 1.0650 now from 1.0850 yesterday, following the “breakout” over 1.0750. Separate “where we’re going” from market tactics. I’m back on the USD/CAD buy. If I’d bought the strength into 1.08 I’d be demoralized. Those of you who are long CAD/USD are booking profit today. It depends where you are located, to a big extent, as to whether you are long or short a particular currency.
21. Except GOLD. All should be long gold.
22. I’m ringing my aussie currency cash register (long AUD/USD) this morning after buying into yesterday’s lows. Some of you may be long usd/aud, and you are on the buy now.
23. You should work to think in a similar manner with the stock market. Don’t think “I’m in cash” when you are moving from stocks to cash. That’s a bankster game, to make Elmer Fudd think cash is the only wealth, the only money. Think, “I’m LONG cash”, or better: “I’m positioned 30% long Dow and 70% long USD for my Dow pgen.
24. When you liquidate part of a stk mkt investment, you are going LONG CASH. It’s a bull bet on cash. The banksters want you to think cash is STATIC, and everything else revolves around the Gman’s paperbug currencies. That’s wrong, and the banksters know it’s wrong. The whole key to how the banksters operate is having their market opponents think from a position of mental and emotional fear or greed, because those are weaknesses. They want their market opponents weak, not strong.
25. Oil up $4 from yesterday’s lows. Nat Gas up. Corn up. Wheat up. Stk mkt up. When GoldLion wrote over the weekend, “you shouldn’t be in the mkt if you didn’t buy anything in past few days”, NOW you FEEL why. As the stk mkt get money-printed higher, volatility will become a growing theme there. I can FEEL the meetings going on this week between financial advisors and Elmer Fudd Public Investor. “What’s really happening here, I don’t think I can take another hit like 2008, and really, this has been going on for 10 years now, I’m in the red over ten years.” Elmer wants out of the market, no question about it. He’s had enough. I would venture that many advisors also have had enough hand holding. They are starting to capitulate, as the job of holding the clients IN the market is wearing them down. “Well, maybe carrying some cash is a good thing, let’s look at some bonds.” The advisors themselves have lost confidence in the market, they’ve toasted not just their clients, but family money and their own as well, breaking the “don’t get high on your own price-chasing drug supply” rule, and are now in a state of worry that a further downleg could bring lawsuits or just a whole new wave of headaches. The dried-up commissions are not worth the additional headache.
26. The great move out of the market and into cash is ON. By lifetime market LOSERS. While a wave of selling caused the 90% meltdown in price in the Dow in the 1930s, it took quite a bit longer for all the price chasers to TOTALLY EXIT the MARKET, and most of it was done at prices well off the lows. It will likely be the same again. This crisis ends with the public OUT of the market. The public thinks the crisis will end with them holding “somewhat less” stock. My view is the crisis ends with them holding near-zero or ZERO amts stock and funds, other than delisted toilet paper.
27. The banksters’ “fun” really hasn’t started yet, because we are only in the EARLIEST stages of the TRANSITION from deflation to quasi-hyperinflation. The public doesn’t know or care about it. All they are doing is staring at their burning stock mkt portfolios. The banksters got a good chunk of stock from the public during the 2008 crash, but it was nowhere near the amts they will eventually accumulate thru the “death of a thousand cuts” that TIME SPENT UNDERWATER does to an investor.
28. Ironically, both the gold community and the public are being hurt by the Dow. The public believes that a wienerhead price chaser can be a professional investor if they ran a business successfully. “I’m a success in business, therefore I’m going to be an investing superstar. It’s pre-ordained. The fact that that I’m too afraid to buy a hundred dollars of stock on real price weakness is not a concern for me. I’m an investing champion.” - Average business owner, 1998.
29. The gold community last week watched a LONG OVERDUE sell-off in the stk mkt from overbought levels FINALLY materialize. Do you NOW see why my shorting program extended to 11,500 from 9000??? The Dow finally topped at almost 11,300!!! That does NOT make me happy. “It topped at eleven-three, and my pgen top was eleven-five, I’m the champ!’ –st? WRONG. What happened there is I BARELY made it before hitting “air” above 11,500, despite employing at [a] 2500 dow points range shorting pgen! I don’t want my final sell order to be hit because it means I BARELY MADE IT OUT ALIVE before hitting a price air pocket. I don’t keep selling at 11600, 11700, etc, thinking “the top’s gotta be here, I know it is!” Do NOT reset your pgens based on HOPES or FEARS. I’m very happy with that range pgen, and there never was any real risk, as it was a smaller position placed against core longs bought in the Dow 8000-6500 lows. My focus now is on China on the longside, but there’s a chance the Dow gets hyperinflated at some point over the next 12 months.
30. The gold community REDLINED on the “ridiculous” scale as the Dow fell. The fact is that many of my shorts were covered off on the smaller earlier sell-offs, and this latest smackdown cleaned the stick clean. The whole affair to me was very calm and rational. Please, put the Dow gas cans away and focus on GOLD or you risk burning yourself alive. That’s the view the banksters have of team shorty pants; a bunch of guys walking around pouring gas all over themselves wearing top caller uniforms. Wait for the Fed to pull out THEIR gas can. That’s a LONG ways off, but it WILL happen. Do you seriously think the Fed is going to go HARDLINE on the stock market NOW with a quadrillion dollars in OTC derivatives on fire, AND knowing the markets & banks might have to be CLOSED if it tanks? Their Dow gas can is only a TRILLION TIMES bigger than yours. When THEY pour gas on the Dow, you’ll have a “supermonster” shorting opportunity. PATIENCE. The banksters will TELL YOU when the market is a monster short, because NOBODY BELIEVES THEM. That’s the great irony, they tell everyone what they are doing, but nobody listens. Morgan Stanley WILL issue another triple sell signal. WAIT FOR IT. All I see now in Dowland is FEAR. And fear must be BOUGHT.
Gotta run, my AUD/USD cash register is ringing!
Question: What sound is better… “the Dow might go to zero and I’ll lose everything, just sell all my underwater gold stocks now, go ahead and do it, I think I’ll just go to 100% t-bills, there never will be any more inflation.”…
Or this sound:
Kachingo!
Cheers
st
Graceland Updates 4am-7am
Email: s2p3t4@sympatico.ca
May 27, 2010
1. Those sure that Tuesday’s Dow action marked the bottom, (the “hammer” on the candle charts) were shocked 24hrs later, as the Dow posted a mirror image reversal day to the downside. This morning the Dow is once again surging, stunning the bears.
2. This is classic whipsaw action, a saw operated by the banksters, cleaning both shorts and longs off the stock market souvlaki stick. It is also only example number 800 billion, of why you must allocate your capital in a pyramid formation, not a huge price plop.
3. I have noted the danger of obsession in the market, and the greatest obsession in the gold community is: shorting the Dow. 1987, 1990, 1998, 2000, and 2007 are the 5 major shorting opportunities that have occurred since the great secular bull of the 1980s began, and has since been replaced by the secular bear in 2000. By the way, I owned ONE stock in 1987 on the day of the crash. It went UP that day.
4. Morgan Stanley’s incredible “Triple Sell Signals” have caught the bulk of these massive declines. My view is similar to theirs, but not identical; that a cyclical bull market began in the crisis lows of Oct 2008-March 2009. The current maniacal obsession with shorting the Dow here and now, is to me a PEANUT PLAY, one that lacks almost none of the characteristics of the 5 major Dow short plays of the past.
5. The secular bear has a ceiling in the Dow 14,000 area and a floor in the 7000 area, and has been ongoing since 2000. IF the euro crisis morphs into “Lehman 2” (I doubt it, but possible), the Dow could decline to the 7000 area again.
6. But IF it did, my question to you is: Are you going to use that opportunity to buy the Dow, or to repeat what you did last time at Dow 6500, and engage in a crazed shorting program into the lows while taking no money out of the financial system? A fall to Dow 7000 is a GIFT. Be prepared now, to accept that gift, with longside buys, if it is presented to you. Has anyone in the gold community actually set up a plan to buy the Dow IF it fell to 7000? The Horrific Answer: NO.
7. Where I differ, slightly, from Morgan Stanley, is that I think there’s a realistic possibility that QE, quantitative easing (aka socialism) FAILS, and the Fed is forced to bring out the bigger weapons to battle the ongoing asset price destruction steamroller, one they refer to using the wet noodle term of “deflation”. The bigger weapons are the dollar devaluation bunker busting conventional bomb,[how do you devalue the dollar? Get China to give out fewer renminbi for a dollar? Cut US interest rates? Arrange for the USD price of gold to go up?! Arrange for stocks to go up?] and money printing, which is effectively the Fed’s nuclear weapons arsenal. Both weapons require two men to turn the switch, as with real nuclear weapons. The US Treasury must be involved in any decision to devalue the dollar or print money to a point that it is a deliberate policy of dollar devaluation.
8. Why would QE fail? Answer: Because the marked the [to] model scam may or may not work, to manage the 1 quadrillion dollar OTC derivatives nightmare. How many assets must REALLY be bought to end the crisis, and how much money is available to pull it off? How many trillions in OTCD’s have really failed?
9. If I had to project a QE failure point, in time and price, I don’t think I could do that, because of the unknowns with the euro/lehman2 situation, the secrecy of the Fed, and marking to model. I will say that the failure point, if it comes, is likely to be several thousand Dow points higher or lower from here. I don’t care about “calling the QE failure point”. I care about making money out of it, and there’s only one way to do that: Respond to price as it occurs as a buyer on the downside, and a seller on the upside, consistently, all the way to zero.
10. If QE is successful, I would agree with Morgan that the now ten year old secular bear market in stocks could end, in a year or two. The recovery would become real, and inflationary pressures would become the theme. If QE fails, then we are facing a situation where the stock market could rise tens of thousands of points higher as dollar devaluation and money printing become the Feds “tools of choice” in the battle against deflation. An institutional panic out of paper money and into the stock market as a safe haven is a real possibility.
11. I do NOT subscribe to the gold community’s perma-bear “short the Dow and do it now, it’s all over this time, I promise!” ideology. This obsession is burning up vast amounts of capital that could be used to BUY GOLD. Carried a step further, it is like throwing away gold. Claims that “after I short the Dow into the ground I’ll be able to buy more gold!” are in my mind, nonsensical. Buy gold, and use a BIT of profit from that SOLID FOUNDATION to play Dow gambler. No gold profits means no gambling chips go on your Dow shorty pants roulette wheel. The worst investors always take the most risk, never forget that fact. They are “rewardaholics”. The best investors focus on mass production lines.
12. Repetition of what works in a modest way, consistently. Repetition of: Tactical Excellence.
13. Buying gold on weakness and selling a portion of it into strength works to build wealth. Wealth measured in ounces, kilos, and tons. Pot shotting as a Dow top caller in the leveraged futures and options markets is not wealth building. It’s a crazed & nonsensical gamble, and therefore by definition must be carried out with nothing but total gambling money.
14. Eric Sprott is a stock market bear. Where is his money? Shorting the Dow? No. It’s in GOLD. Richard Russell is a bear. Is his money spent shorting the Dow? No. The smaller the investor you are, the MORE you need to follow these gold MAVERICKS in ACTION. Shorting the Dow in the gold community is an ADDICTION. It’s time for rehab. The rehab medicine is GOLD OWNERSHIP.
15. Gold is the world’s lowest risk investment. Being obsessed with owning the world’s lowest risk asset is an addiction and obsession that’s HEALTHY. Like being addicted to fresh fruit. Being obsessed with shorting the Dow is like being hooked on food you find at the garbage dump. Every now and then, you find some food that’s not rotten, but mostly, it’s a booked losses disaster.
16. I want you all to think very hard about all the Dow bear analysis you have read in the gold community since the lows of 2008. The Dow is a GRID. We’re at the 10,000 area gridline right now. Picture price as the ball in a football game. Your end of the field has a goal line. Dow Zero. This is better than football, because unless the Dow goes to zero, you’re a player, provided you’ve allocated your capital correctly.
17. We’ve currently come from Dow 11,200 to Dow 10,000. It’s time to BUY. “But what if price goes to a lower gridline, I’m finished!” –typical gold writer. Elmer Fudd Public Investor finished HIMSELF. Why? He blames the banksters for his losses. All those hours spent watching TV, how many were spent reading about past Empires, about the Asian mentality of buying gold into weakness? Answer: None. The Dow only has 9 gridlines below this one, using 1000 pt increments.
18. Likewise, gold has 11 increments of $100 each below the current $1200 marker. Keep it simple. I posted something on the website about the Sprott “phys” fund. If you plopped a huge wad of capital into the fund when it was trading at a 30% premium to bullion, you’re going to see a haircut when institutions come in, because those institutions are not going to want to pay that full premium. If you buy in a pyramid formation, you are HAPPY to see that decline in price. The same thing happened to the Central Gold Trust (GTU) before. At times, these imperfect gold funds will outperform gold, and at others they will underperform. Correct tactics will see that YOUR gold fund ship is not rammed onto the rocks by greed or fear. Overall, I don’t see the premiums as anything but a minor issue. Use them to your advantage, tweaking your buys as the premiums are low (or even negative to NAV), so you buy more at those times. Likewise, when the premiums are high, sell a bit more into your profit points.
19. This week’s theme is the Dow and Bonds, as they relate to gold. More specifically, how they are affecting, and should affect, your actions in the GOLD market. Obsessions and addictions take some time to heal. Let me tell you a brief story about the 2nd largest gold stocks investor in the world, in the last bull market. Harry Schultz. In his mid 80s now, he operates out of Monaco, and I’ve read his newsletter for 40 years, since I was 8 yrs old taking my father’s copy that I wasn’t supposed to look at, and reading it in bed with a flashlight when everyone was sleeping. He likes things to be “clean, crisp, fresh” in his THINKING. Not a lot of clutter.
20. When you look at major assets as a grid, and forcefully delegate ANALYSIS to playing 2nd fiddle, you are operating in that mindset. Fresh. Crisp. Clean. Most analysts go on and on (and on and on) about the Dow, about how it “could fall to 8500” or it could do this or that, and they are reliving their failures of 2008, and want you to do the same, like a broken record. There was no shorting in advance of 1987, 1990, 1998, 2000, or 2007, other than the usual “blob” approach that “this thing has to go down, it’s way overvalued!” That’s a sort of “Gman” (govt) style of thinking, like the BLOB.
21. As I look out my market window this morning, I look at my ASSETS GRID. I hold some euros. I’m not holding an overleveraged forex trade that has me comatose. Hundreds of millions of Europeans use the Euro everyday for all their transactions. That’s not ending. It’s an asset, and my gridlines on that asset that I own in LIMITED SIZE, are: Fresh. Crisp. Clean. I own Australian Dollars. A national currency. I own forex, yes, but I don’t answer to the margin man. I own an asset with ultra-low buy/sell commission and the tightest bid/ask spreads. Try going to the bank, and see what the spreads are compared to the forex markets. I own US dollars. That’s an asset. There are my gridlines, my Pgen buy and sell points. The playing field (financial system) likely isn’t going anywhere. The BALL might move, but not the field. If the FIELD moves, well that’s why you have physical gold IN YOUR HAND, but for the other 99.99% of recorded history’s time, the field is not blowing up. I own wheat on a gridline. What a fabulous asset. Corn. If these items fall 50cents a bushel, the picture out of my eyes is the wheat and corn price ball moving down the field to my next gridline and I step up to that gridline on the buy, accumulating that asset. I feel GOOD. I glance into the crowd from the field, and there’s Elmer Fudd and Team Overlevered screaming, “but what if wheat goes to zero, you’re finished, sell now before you lose everything!” Chill out bud, you’re annoying me here in Zenland. Wealthland. Asset accumulation land. Energy (oil and gas). Another phenomenal asset. I own part of the greatest industrial revolution in world history, via the Chinese stk mkt (FXI). What a great field that is, with 37 dollar gridlines to my goal line. Silver has 18 gridlines, with a dollar an ounce markings. One of the world’s greatest assets, timeless wealth.
22. Most of all, I own GOLD. The ultimate playing field. With the ultimate asset, you want the ULTIMATE MINDSET.
23. If you overlever yourself, you are POISONING YOUR MIND. Stress causes cancer, and gold should be the least stressful investment to own, by definition. The worst investors, of course, own NONE. Many of them will commit suicide before this crisis ends. Clean, crisp, and fresh? Sadly, no. More like the Demented Blob in action.
24. Dennis Gartman has apparently now come out and said “gold correction over”. I don’t have an issue with his analysis, but he’s going on mainstream TV, and speaking to an audience of mainly non-leveraged investors, without being clear that he’s massively leveraged. If he was more clear about that, and perhaps the media networks are more to blame than he is, I would have ZERO issue with Dennis Gartman. Here’s reality: I had a letter from a reader who was holding a whole portfolio of solid gold stocks bought much much lower than current pricing, that he was considering liquidating when “the gold menace” gave his sell signal a week ago. I told him he should not be selling any long term holding based on the words of these overleveraged gold traders, words that come in little spurts and can be reversed 24 hours later. There can be major tax consequences. Especially when you’re told, “oh wait, I know I said sell, but now I say buy it all back!”. Three days after selling it ALL.
25. Maintain a clean, crisp, and fresh outlook, with respect to your gold holdings. We feathered out gold items on the sell side into 1250, and feathered back in on the buy into 1166. That’s clean. That’s crisp. And that’s fresh! I think there’s a 51% chance we take out 1250 as opposed to a 49% chance that 1166 fails first. Are you getting the VIBE? Hope so, because that’s the Pgen Gridliness Vibe. No worries about 1166 failing, no worries about missing out on gold blasting thru 1250. Clean, crisp, fresh RESPONSE with ACTION whatever happens. So yes, I’m mildly biased to the upside, but whatever happens, I’ll be responding to the gold price ball. And no, you won’t see me blubbering from the fetal position, “the whole gold field is at risk, don’t you know how risky gold is, the whole thing could go off the board, sell, sell, sell, now, now, now!” That thinking to me, is POISON, the mindset of a stressed-out and over-levered maniac.
26. When I look out at Elmer Fudd Public Investor, I see an ILL individual. Somebody with FOOD POISONING. “When will price do what I want it to do?”, and “What’s next for the market?”. Those are the 2 main themes of their mindset, themes that are the CAUSE of their market problems, ironically. There’s nothing clean, crisp, or fresh about that mindset.
27. Goldman Sach’s trading team is apparently averaging $100 million a day in booked wins in the market, sporting an aprox 97% winning days versus losing days track record. Goldland is focused on the negative side of that phenomenal trading performance. My view: Put the top gold writers in place of Goldman’s team, AT GOLDMAN with ALL OF GOLDMAN’S tools at their disposal, and the trading record would likely be:
28. $100 million a day in booked LOSSES with a 97% losing days versus winning days track record. There’s a lot more to making money trading than goldland thinks. A wienerhead price chaser cannot do what Goldman does, even sitting in Goldman’s offices. The BULK of Goldman’s trading wins come from buying weakness ALL THE WAY TO ZERO and selling strength, systematically. Not from analyzing the market. Yes, a substantial component is a scam, where they front run, hit the stops etc. Those stops are hit because the OVERLEVERAGED WINERHEADS ON THE OTHER SIDE OF THE TRADE ARE GREEDY PRICE CHASERS WHO ENTERED THEIR TRADES WITH AN EXCESSIVE FOCUS ON TIMING AND REWARD. Leveraged Stoploss Trader versus Goldman Sachs. Stoploss trader gets SMOKED 97% of the time. That’s not Goldman’s fault. Goldman is not playing the comex with a $10 or $15 stoploss like the wienerheads are using. That DEFINES death of a 1000 cuts. Goldman operates like YOU DO with your pgens, only in SIZE. All Goldman is really doing is applying a massive version of the Pgen. They simply have more money than you do, that is ALL. As price drops, they can apply EXPONENTIALLY more money. At the other end of the scale sits Elmer Fudd. Some Elmer Fudd investors have only used ONE price entry point in the last 15 years in the stock market! Then they spend their time RANTING how about they were ripped off! And many of them are business owner muti-millionaires! They have the capital to do what Goldman does, but they do the OPPOSITE. They’re too mentally WEAK to apply even a hundred dollars of capital to the stock market on weakness, let alone GOLD!!! The way for Elmer Fudd to get the banksters is IN THE MARKET. It’s a long road, but every day, every gridline that gets ignored by Elmer Fudd on the buy side on weakness, sees the banksters gaining wealth, gaining power. Today Goldman will probably have another $100 million day. Elmer Fudd can get on the field as a player, or he’ll get to watch that $100million a day number become $200 million, then $300 million, and more, while he makes his way to the govt t-bill welfare station, totally out of the market, a total loser. That’s his best case scenario if he doesn’t make the effort to change. At worst, it ends at the bread line. At this point, it’s unknown what kind of damage would occur in the global economy if the currency crisis comes to US shores. I think it WILL. Are You Prepared?
29. You’ll never be able to stop the bankster games. You don’t need to so long as you maintain that clean, crisp and clear mindset, which is only possible by responding systematically to the gridlines as your market theme. As I send this off, the fundsters are bailing on gold. After touching the $1218 area, we’re into $1206. Think ounces, think gridlines, think Pgen. CLEAN. CRISP. FRESH.
30. Check the site. Fresh QE on the way. My message to the gold bears? The bears are going to look like gold ANTS by the end of this crisis, provided you stay professional in your actions.
Cheers,
Thanks,
st
Thank-you
Stewart Thomson
Graceland Updates