Graceland Updates 4am-7am

Aug 5, 2010

1. “My commission is only $7 a trade!”

2. Before you celebrate, could I ask you a small favour? OK, ask the back office at your brokerage if your orders go DIRECTLY to the EXCHANGE.

3. The BANKSTERS are operating behind the scenes of many discount brokerages. The client (aka “The Wiener”) enters their order in glee. What happens is a FLASH TRADE, where the bankster leaps in buying and selling between you and the also-unsuspecting other side of your trade, “clipping” you both for a small fraction of money. Those of you (90% of you) who own businesses are probably not surprised to learn the banksters have endless ways to skin a cat (or roast a wiener)…The non-business owner thinks, “if I can’t see the commission, I didn’t pay it, right?” “That’s right, see how smart you are!”, say the banksters….. Notice the banksters didn’t use the word, “correct”.

4. The rich get richer, and the wieners get roasted some more on the banksters’ mkt BBQ. Continuing on that note, funds that enter large volumes of trading in a month get PAID REBATES on their trading commissions, paid by the exchanges, especially on the buy side, for supporting the market with limit orders that extend below market prices. That fits Pgen trading perfectly. How does it fit Elmer Fudd Public Investor’s style of trading, does he get PAID to trade? I’ll let you decide how the banksters “look after” him…

5. Gold Juniors. Here’s a look at the GDXJ chart. It’s up 10% from the lows in the past week or so. GDXJ daily Check out the site for why it must be sold, other than the fact that you are ORDERED to sell by “Master Pgen”. It’s just a strategic sell of a small portion of what you bought into the 25 area lows when 91% of the gold writers said it was going lower, and some “knew” you should “sell everything” before 2008 repeated. If 2008 does repeat, and I think the possibility of it doing so is extremely remote, but if YOU believe it IS going to repeat, then I would suggest you trade in all your paper money for gold because a repeat of 2008 sees the entire global financial system CLOSED, including the PAPER MONEY SYSTEM. Nobody will care about paper money if the banks are toast and govt can’t pay its GIANT BLOB of workers.

6. The financial system right now is like a boxer that was knocked out after a 12 round beating. Now the gold writers that are predicting 2008 again have stood the boxer up ready for another fight with no rest and predicting he goes the distance/you can trade the markets and have bank accounts operating. There won’t be any fight if 2008 happens again to asset prices. The financial system will be beat into the ground, permanently, in about 2 seconds after the OTC mark to market bell is sounded by the banksters on whatever marked to model blob of garbage they picked for the show. I don’t believe ringing the bell is in their interest, not at all. That’s GOOD NEWS FOR YOU and BAD NEWS for those who just SOLD EVERTHING, since I believe the OPPOSITE of 2008 is EXACTLY the ACE CARD the banksters are going to play next; gold goes vertical, and the rest of the world, clutching their paper money for safety, goes into BONFIRE MODE.

7. Here’s a look at Barrick Gold Corp.

8. The story of Barrick is typical of the story of the OTC derivatives bets, which has the banksters long juniors and short seniors in a SPREAD TRADE. Juniors don’t rise if seniors don’t rise. The spread trade is about RELATIVE performance, and the banksters are taking on the fundsters in a bet that the juniors rise MORE than the seniors. If you want to bet that juniors rise while seniors tank, I would suggest that if seniors tank your juniors will go off the board. Don’t cheer down the seniors, that’s eating the market hand that feeds. Cheer UP the juniors.

9. Speaking of relative performance, I mentioned that the GDXJ is up 10% in the past 3 weeks. GoldLion, the world’s greatest juniors stock trader, and a MAJOR shareholder in MANY juniors, reports that his average junior is up about 15% in the last 48 HOURS, 50% outperformance of the GDXJ. GoldLion has his own personal geologist that he’s used for years, to check out every juniors deal he’s gets into in size, before taking action. GoldLion is a retired ACCOUNTANT himself, as well as a current gold DEALER. Now, he works for….you!!! Check out www.gracelandjuniors.com if you want in on the gold juniors Pgen profits party (PPP), that is JUST STARTING.

10. Those of you (a LOT) who are in WHEAT are going into the final stretch of this week in cash register mania mode, PROVIDED you didn’t top call the thing, and are sticking to your pgens. My friend Sad Sack, a solid business owner but a price-chasing drug addict in the market and a lifetime market loser, bigtime, finally went long yesterday. I’ve mentioned his market actions a number of times, but his most spectacular plays involve him chasing price higher and adding to a huge position that builds him obscene profits that he does NOT book, then watching it implode into a 70- 90% loss, where he liquidates in total depression, totally broken.

11. On that note, wheat is surging higher again today and Sack is going to be buying more to get in on the “once in a lifetime” runaway move. The good news for those of you holding core wheat positions is wheat took out another important high this morning and could go way higher as Sack and the rest of the price chasers pile on positions. The professional trader that is out of wheat will wait for another PROFESSIONAL BUY POINT to act. They aren’t thinking, “I gotta get in, it’s getting away!”. That professional buy point might come 10 minutes from now, or maybe it doesn’t happen for 6 months. The professional doesn’t know and doesn’t care. Before chasing Sack as he chases wheat, think about the professional in one hand, and Sack in the other. One is a lifetime winner and the other is a blood-soaked market moron…Sack has the most passion for the markets of anyone I’ve ever come into contact with, but he’s a total market moron. The difference between GoldLion and Sad Sack is that GoldLion is a market pig, and Sad Sack is a hog. Get fat in the market, not slaughtered. Forcing yourself to stand back in a vertical market like wheat if you are out can be as difficult as forcing yourself to buy, as I did to you, just 2 months ago, as the future for wheat looked FINISHED. Wheat is rising on a short covering BONFIRE and new longs price chasing insanity. We’ll have to wait ANOTHER week to see in the liquidity flows report how the banksters handled the action up to this morning…

12. Those of you who run trading pgens ONLY need to learn from the FUNDAMENTAL VIEW that governs markets. If you SHORTED wheat trying to TOP CALL it, you are DEAD this morning, with wheat up MASSIVELY. If you booked micro money profits on all your longs, you are out while monster players like our own T-Rex are sitting on monster tracts of FARMLAND. T-Rex versus the traders is not a contest. It’s a holocaust. Markets can go to oversold like natgas did after it just started to decline, fooling TRADERS that the bottom is NEAR. Then price goes impossibly lower, and even more impossibly lower. If you don’t own a real asset, you could get into an Enron situation. The reverse is the case with wheat right now. All the indicators gave sell signals on the short term charts, and all took the traders OUT of the monster move right as it went parabolic.

13. Corn is having another good morning, though not as good as wheat by any means. The reason I like corn HERE, not wheat, is strategic, not big picture. I believe both take out their all-time highs.

14. Let’s give some thought to the dollarbugs, aka the paper money worshippers, aka the photocopy machine worshippers. Here’s the US dollar chart:

15. USD Monthly. This is the monthly chart. The daily chart is very oversold, but those bargain hunting the USD need to keep in mind the waterfalling action on the charts is basically the one step forwards, 2 steps back scenario.

16. Elmer Fudd P.I. is focused on which paperbug currency he should buy. He bought USD against euro in a price chase. That failed. Now he’s buying the euro. All the paperbugs are locked in the blast furnace by the gold punisher. The USD is oversold on the daily chart and I’m buying it, but my overall papermoney trading positions are DECLINING in size, while my food, energy, and metals positions (meaning the risk capital devoted to the pgens) are RISING and I’m VERY comfortable with that strategy. If the dollar blows into the low 60’s, and gold revaluation is in play, I’ll want to start owning the dollar in a pgen.

17. The big players are likely moving their focus from bullion to gold juniors while the small players sell everything because some astro rock formation says it’s 2008 again, but the financial system will magically stay open when it happens so they can rebuy all the goodies and make free money.

18. Focus on the big players, not the rockheads. Focus on those who make the most wealth. This game is about wealth building, not prediction. A subtle yet key difference…

19. If you look at the RSS feeds I have pumped into Graceland (the news on the left hand menus as you scroll down), you can see the latest on Jim “mighty man” Rogers. He’s started shorting the US Tbond with a SMALL position.

20. Those of you who blew up shorting the bond (I suspect it’s a large number) should keep that word in mind; SMALL.

21. Mr. Macro points out that as rates go closer to zero, a small rate cut that produce enormous rise in bond prices. I’m personally not really interested in shorting bonds, because I think falling bonds will fuel gold higher as we go into a paper money panic, and the FAR LARGER MONEY is to be gained in gold stock, especially juniors, and then EVEN LARGER MONEY gained by BUYING the 30 year tbond, AFTER it has collapsed, and AFTER the dollar is locked to gold, ending the crisis by devaluing the net worth of Elmer Fudd, PI drastically.

22. If the bond DOESN’T collapse, if QE gets a last ramp up before begin jettisoned for gold revaluation, then GOLD and GOLD JUNIORS STILL BENEFIT and GO HIGHER. So it’s just a question of whether you want to maximize your reward to risk ratio. Mr. Macro tends to bet 1% of risk capital on huge possible but difficult to call events, like the bond mkt imploding, which is why he’s still around, and in the BLACK, while most investors bet a large piece of the risk capital farm on single price point bozo plays like “Nortel to the sky forever” and are now so broken mentally they couldn’t invest $200 in a bond mkt put option, while dumping $200,000 into Nortel at a 100 to 1 pe ratio in a PENSION MONEY account with the local golf ball advisor was a solid deal. “I never never knew that was a risky strategy, I want my money back.” Sure, call the banksters and they’ll hand it right over with a smile while you climb back on the turnip truck on the way to the papermoney blast furnace. I guess they could invest $200 in the put option, because there’s SLIGHTLY more than that left, of their Nortel to the sky forever deal…

23. My trading accounts just blasted to another new high as I finish this up. Corn just DID join big brother wheat at the cash register mania party. I hear that Fudd’s accounts also went up today. How much is 1% bank interest divided by 365 days? That’s pathetic. Fudd is grovelling on his knees in front of the banksters while they spit on him and throw him micro fractions of a percent, while taking his gold off him at the pawn shop at a 40% markdown. That’s so pathetic I don’t even have any words to properly describe the situation. Sadly, as horrific as the situation is, it’s about to get MAGNIFIED EXPONENTIALLY !!!

24. It’s looks like the jobs report MIGHT come and go with no surprise from the banksters this time. I’d like to sell $1210 with what I bought from the “sell everything to the banksters now ,gold is going to zero, my time machine says so!” crowd at 1180 (remember I use dec futures for pricing, but it doesn’t matter), sell that today as the gold teckies rush back into the mkt issuing “my sell everything gold calls are temporarily cancelled, gold is a BUY!”, and add a little gold cash register action to the mix today, for diversification of course.

25. I’ll post the latest corn mkt pgen on the site in a few mins, as well as an interesting silver company update…

See you out there…

S “the grid stalker” T

Thank-you

Stewart Thomson

Graceland Updates