Graceland Updates 4am-7am
Email: s2p3t4@sympatico.ca
Aug 2, 2010
1. It’s a little quiet out there. The gold writers seem positive about gold and gold stock, but not excited. As you read thru today’s update, you decide whether I sound EXCITED or not, and WHY.
2. As we went into the lows last week at 1160, apparently less than 9% of gold writers were bullish. That, alone, gets me EXCITED about GOLD.
3. My view is we’re on the verge of doing in NATURAL GAS, what just happened inWheat. Wheat is now up 54% in a MONTH.
4. The same type of thing WILL happen in Natural Gas. Remember that when I started buying natural gas I only did it because I got bombarded with emails that it was about to blast off. I’m not afraid of ANY major market with the pgen, even a major BEAR. You know my response to the emails: Gas is a phenomenal asset to build wealth, and while it offered good value at those prices, calling that the bottom was like playing with fire. The pgen has seen me book dozens of wins in natgas since then, WHILE building a substantial core position. The hour of BLASTOFF is drawing close now and when it happens most will blow out their positions on a micro blip up in price, or even short it, and totally fail to build wealth. Don’t let that be YOU.
5. When you own a powerhouse ASSET, with that power being its microscopic odds of going to ZERO, it is just a matter of TIME before price turns in your favour.
6. Write this down and put it on a billboard on your front lawn: If you don’t have TIME, then you won’t build any WEALTH. Buy assets that have TINY odds of going off the board, not the latest pipedream sold to widows and orphans by the banksters.
7. As I “turn up the fire” on junior gold stocks, look at wheat (and NOW CORN), and natgas, and the Dow, and other assets. The most common email I get from non-subs and from outside of the gold community is: WHEN will market X do abc in terms of price movement? Translation: WHEN will the market do what that investor DEMANDS the market do FOR THEM? Answer: Asking THAT question is how to remain a MARKET LOSER. Focus on responding to price, not predicting it in time. IF you want WEALTH.
8. TIME IS YOUR BOSS, NOT THE OTHER WAY ROUND.
9. Scan the gold sites. Show me ONE writer who mentions wheat, before, let alone AFTER a 50% SUPERBLAST. The wedge pattern on wheat is MASSIVE, as was the head and shoulders on the weekly gold chart. The gold writers are bogged down in trying to short the Dow to zero, drawing upwedges that either don’t exist or are microscopic. The other half of their time is spent “monitoring the correction” in the gold market. If you trade the market looking thru a microscope, that’s the size of your wins; microscopic. In most cases, obsession with the microscope can turn your ACCOUNT into a microscopic entity….
10. I’ve mentioned the phrase, “sin enough to remove the price chasing urge”, many times. Sad Sack joined the retail investors in SHORTING wheat and corn into the LOWS, and after being turfed out of the market in a loss-booking disgrace, he has become a wheat market SPECTATOR. Like a good little wiener, he watches daily, as wheat soars again and again and again. He waits for his magical correction to enter and make big free money. Wheat and corn are Sad Sack’s two favourite commodities, yet he’s stayed out, made nothing, terrified the market will “correct”. If he’d bought a SMALL position on small weakness, he’d be IN now on BIG strength! By the time wheat gets to $15 a bushel, Sack will have a FLEET of wheat mkt gurus advising him on the next hot wheat trade as he and his wienerhead techie team babble about trendlines and “the chart says this, and the chart says that”. The bottom line is that years from now, he’ll have made absolutely NOTHING in the wheat market, built ZERO WEALTH and LOST MONEY, despite working himself to the bone trying to play wheat trader.
11. If YOU get into a position like Sack is in, SIN A LITTLE. Sack doesn’t understand that the market is going up BECAUSE he is standing there TERRIFIED. There is ZERO GREED in the wheat market. It’s the ultimate wall of worry.
12. Markets rise and fall on LOSS BOOKING by the majority of players. The “profit booking” stories you see in the media on a regular basis in all markets are 99% GARBAGE. Knock on the doors of your neighbours and get them to show you their portfolios. Where is the profit booking? There is only a mangled financial carcass lying in a pool of loss-booked blood.
13. To top it all off, now they are going into “savings mode” at 1% interest rates. Brilliant. Make 1% and load a handgun with a hyperinflation bullet, and play the Russian roulette lotto. That, literally, is the STRATEGY of billions of the world’s investors, with the banksters facing the exact OPPOSITE direction.
14. I think, FINALLY, most of you are “getting it”, in terms of how I see the DOW. It’s an ASSET. The lower the price goes, the MORE I want to own it. The Chinese Dow is the TURBOCHARGED version of the US Dow, because the USA is a debtor, and China is a creditor, and because China is at the START of building a financial EMPIRE, and because the movement from the farms to the cities is in its infancy. Even a 90% selloff is MEANINGLESS in terms of the big China picture. The FXI-nyse is headed to THOUSANDS of dollars a share. It’s about 40 dollars now. The lower it goes, the more I want to own it. It fell 70% in 2008. I WISH it would fall 90%, but sadly, I don’t see that happening.
15. As it becomes widely realized that the banksters have put everyone into cash just in time for the possibility of hyperinflation, TERROR will ENGORGE the WORLD. How will people come to that realization? Answer: The banksters will pump them with that PAINTING with a much bigger brush than they painted the “euro to zero” masterpiece, and the possibility of the US dollar really hyperinflating will be REAL. Wait til you start reading what the chief economists of major financial institutions start saying as the banksters play their game. We ALL will feel that TERROR. Institutions will flow money into the world’s stock markets like there is NO TOMORROW and the fact is, there might not be any tomorrow for ALL the world’s paper currencies, if the banksters can’t control their own gold punisher genie they are about to let out of the bottle. Not since 1929 has the world seen institutional TERROR. You saw PRICE FEAR in 2008. Not “the system is failing!” TERROR. If you think asset price destruction in dollars fear was big, wait til you get a FEEL of “paper money on fire!” TERROR. That IS coming, and it’s coming to institutional money managers. What will be the mindset of Elmer Fudd PI(public investor) as THAT happens what will HE FEEL? Answer: He’ll feel SUICIDAL, and thousands of people will ACT on those feelings. If the gold genie punisher goes out of control, is it really unreasonable to picture a million suicides out of a billion investors? That’s a 1 out of 1000 ratio. Not extreme at all.
16. Here’s a look at the Natural Gas down channel.
17. Big money is accumulating gas. Small money is “monitoring the situation”. Guessing about whether $4 holds or not is a total waste of TIME. Still, there is no harm in guessing whether price breaks below $4 or not. The harm comes when you fail to respond to such a break with buying, or fail to at least holding your ground. If you think price is going to take out the lows, use the strength in price NOW to add shorts, but don’t exceed 30% of your long pgen capital, and preferably you don’t exceed 30% of your existing long POSITION. Adding shorts into a BIT of strength after MONSTER weakness, even if it doesn’t exceed 30% of your long gas pgen capital, could leave you NET SHORT as the WORLD’S MOST VOLATILE COMMODITY EXPLODES TO THE UPSIDE. DON’T LET THAT HORROR BE….YOU!
18. One of you asked me about Gold Resource Corp. The weekly chart for GORO is almost identical to the bullion chart, and is what the gold community HOPED to see in the majority of gold stock weekly charts right now. It didn’t happen. Everything that happened to goro WILL happen to the $hui/gdx/gdxj. Goro is a PREVIEW. A gold stocks PARTY PREVIEW.
19. The astro brigade is back. They note “planet alignment” and cite a rock star who has been thru severe depression and drug addiction, as an example of somebody with a charmed life, proving their astro analysis is why YOU should sell all your gold now, before you lose all your paper money.
20. Is the $hui picture as “michaelangelic” as the one on bullion between 680-1033 was? NO. Could it fail? YES. The bottom line is I own the most amount of junior gold stock now that I’ve owned in the bull market. I wonder WHY? You decide if I think it will fail or not. Here’s the HUI as I see it, the gold stocks party preview as I see it.
22. Price could drop a fair bit lower and build an even better h&s bull continuation pattern. I have no idea if that will happen and if it does I’ll buy more gold juniors stock. If price takes off now, I’m satisfied with my positioning. If price drops, I’m satisfied I can buy more without freaking out.
23. As I send this off I see the euro hit 1.31 and it’s kachingo time again in the “euro to zero, oops we meant fundsters to zero” trade. It’s amazing how many golf ball advisors that “knew” the euro was in major trouble at 118 and was going lower now “know” the situation is fixed. The situation isn’t fixed. ALL paper currencies are in the blast furnace. Keep the size of your positions with that reality in mind when trading one paper currency against another, when selling all your gold because the man on mars lined up some space rocks while selling all his gold to the banksters.
24. See you on the price reality grid…
Today is a Canadian holiday. Sadly, I have to work today. I have that hard labour job of ringing my cash registers again…
Thank-you
Stewart Thomson
Graceland Updates