Graceland Updates 4am-7am
Email: s2p3t4@sympatico.ca
Sept 1, 2010
1. “We are bracing ourselves for the coming crisis.” – New car sales chief for one of Japan’s car companies, Aug 31, 2010.
2. He called a COLLAPSE in car sales unavoidable, and for those of you who want a plug-in prius, you might find the cost goes down as the Iran pot on the stove boils over. Take the gift.
3. Here’s the Japan market chart going back over 30 years.
5. I would say this 30 yr chart is probably a good analogy of the FREIGHT TRAIN in the real estate and “growth safe safety” paper money bond mkt tunnel that awaits Elmer Fudd as he drives blindly ahead, in his balsa wood “new era of safety” investment car. Regardless, while the typical price chaser was MANGLED by the Nikkei, the PGEN handled the 30 year bear with a yawn.
6. Wherever Chairman Zhou is, we can only speculate. My guess is negotiations are underway to get him back to end the mystery, and make it appear nothing ever happened. One can only speculate about threats towards his family members still in China, as a Gman tool to “aid his return”. It’s also possible he’s being interrogated by the Gman over the hundreds in billions in losses in US DOLLAR based investments he has presided over, in his position of Chief Price Chaser, for the bank of China. The US central bank holds all kinds of “interesting” investments besides T-bonds. Who says the Bank of China is any different? If you think getting an audit of the US Fed is difficult, try demanding the Gman audit the Chinese Central Bank and giving the real results to the people. In case anyone forgot, free speech doesn’t apply in China. The good news is the trend is bullish, not bearish, on that front. Zhou, or what’s left of him, is a proponent of the BANCOR global currency proposed by Keynes, which I’ve more correctly renamed theBANKSTOR.
7. China’s Gman isn’t “wisely planning ahead” in its purchase of commodity assets. It’s PANICKING that they can’t meet the DEMAND for commodities as HUNDREDS OF MILLIONS more people pour off the farms and into the cities in the next wave.
8. 1959. Remember that year. 1959 was the year the United States banksters decided to turn on the toilet paper photocopier machine, to the point that the amount of dollars outstanding surpassed the amount of gold held by the US Treasury. 1959 marked the year the United States began the road from being the world’s central creditor, to being the world’s central debtor, a transition cheered on by millions of Elmer Fudds, who realized that the real key to long term wealth building was house prices to infinity, bought on a credit card. Not factories, not paying what you owe, not protecting the value of money itself. Fudd cheered on the photocopy machine operators as GODS. Stunned by the level of stupidity, but enjoying every moment of it, the banksters continue today to crack the whip, and Fudd continues to make the trip. “Get the 5 year olds into the workforce, enough of this nonsense of both the husband and wife working a lousy 18 part time hours a day to pay the mortgage nonsense, don’t you know house prices are about to rocket again? Get those 5 years old in the workforce before you miss out!” – banksters, sept 1, 2010.
9. Now is NOT the time to cut the Gman’s expenses. That should have been done DECADES ago. I’ve talked about the gold standard being a bankster SCHEME when it is put in at HIGH gold prices, which is the current bankster plan. Most of you will feel a burning rage when you actually realize the whole bull market in gold is a bankster scheme, and the prime beneficiaries of the whole bull market are the banskters themselves. The gold ratio standard should have been implemented between gold 250-400, IF the intention was to BENEFIT the taxpayer. If the intention was to MILK him like a COW, then the idea is to bring in a gold standard at HIGH prices.
10. What do YOU see transpiring out your market window?
11. Try to get a picture of FEAR. Try to get a picture of what millions of “investors” are going to FEEL when the bond market collapses. THEY don’t believe it will happen, just like they never believed the stock market or real estate market would collapse. If you talk to the growth with safety coconut heads, they’ll list you a zillion reasons why THIS TIME IS DIFFERENT. It’s all GARBAGE coming out of their mouth. They are PRICE CHASERS and all their analysis is nothing more than emotional URGES being manifested in market action.
12. Remember the fellow who DEMANDED I give him gold stocks to BUY on the NIGHT of 1225 in Dec, or I’d be “fired”. I told him to take the pain of not being in, and after cursing me to eternity, he went elsewhere, where other writers told him to load up on their price-chased gold juniors party pack, and he did. He then burned like ricepaper as gold melted to 1045, “impossibly”.
13. Guess what, he’s back in town! He sent me an email yesterday snickering, “are you still buying nat gas?” I wrote back, “yes, and my main concern, having allocated only about 25% of my nat gas PGEN risk capital so far, is that gas turns up long before I build the position I’d like to have”. He never responded. (Obviously).
14. Hours later, GoldLion, the greatest gold juniors stock trader in the world, emailed me that he had just begun aggressive PGENS on a number of oil/gas juniors, and expected them to be 25% to 100% higher over the coming 1 to 9 months. The bottom line is: the more things change,the more they stay the same.
15. Dec Gold tagged 1254 this morning. Would all price chasers please report for immediate duty on centre stage, at the banksters’ comedy club. Thanks. Place your buy orders now, and “on stop” as price goes over 1266. The banksters promise you a mountain of free money if you do it.
16. At some point, probably several hundred dollars higher than where we are now, a major hit on gold will occur, one of a tremendous power. Price may decline well below where we are now, and the pain will rival the 2008 crash. I’m not sure what the catalysts will be, but the collapse of the bond market could cause Elmer Fudd to take a stab at gold as there’s nothing left for him at that point. A hit on gold after he arrives in the gold market then, could be the final nail in his financial coffin, one that sends him to the breadline, permanently shattered both financially and emotionally. A hit could also have its birth in a new leverage crisis, with the banksters responding by chopping margin available to the leveraged funds.
17. It would be after such a collapse in assets, say gold tumbling from $1500 to $1000, that Tim “The Terminator” Geithner might take the baton from Ben Bernanke and usher in the first gold revaluation since the 1930s. Is it a baton, or a club to beat on Elmer Fudd’s head? I don’t know, but I do know that Gold would likely then shoot towards $2000 with Elmer Fudd left severely impoverished, the bond market on fire, and housing in a whole new nosedive. Institutions would storm the stock market on the buy side in the GREATEST BUY FRENZY OF ALL TIME IN THE HISTORY OF THE WESTERN WORLD, and gold juniors would look like shooting stars HEADED FOR THE NEXT GALAXY.
18. I have tried, this week and last, to hammer home the theme of not playing cannibal with your core positions. Just to remind everyone, trading positions are typically sold at 3 times the buy increment, outer core positions sold around 10 times the buy increment, and inner core positions attempted to be held for the DURATION OF THE BULL MARKET, or even into a bear market, depending on the prices paid for the positions.
19. The bond market closed at a new high for the rally yesterday, EXTERMINATING the latest leveraged crew of price-plopping top callers. 99% of the investors who use stop losses, and you can write this down, are ADDICTED GAMBLERS who use TAKELOSSES to MANAGE the amount of money from their businesses they BURN in the MARKET. Their stoplosses have NOTHING to do with MAKING MONEY. The stoplosses are a control mechanism to limit the BURN RATE, to FIX it a set monthly rate, just as the banksters plan to set the coming new gold standard as a control mechanism on the BURN RATE for the world’s DEBT-A-HOLICS. I don’t see what a BURN RATE has to do with INVESTING, not at all. Most addicted gamblers HATE paper trading and ridicule it.
20. I’ll remind you that the two “head men” of the gold community in the last gold bull market, Jim Sinclair and Harry Schultz, BOTH are ADAMANT believers in PAPER TRADING. Business owners that PLOP into investing with NO PAPER TRADING are like C grade hockey players stepping onto the ice in an NHL game and claiming, “I think I’ll be OK”. Sorry, it’s stretcher time, not free money time, for the C grade players who try to play in the market, which is the NHL OF BUSINESS, without any PRACTISE. People like Sad Sack HATE paper trading. Who likes practise? Who likes boredom. Who likes repetition day after day? Answer: Nobody really likes it, but winners DO IT, and wieners live the fantasy of being big league hockey stars with no practise.
21. The Pgen is MAGNIFICENTLY suited to paper trading as well as real trading. You can try out various scenarios with no risk capital, a little risk capital, or a lot of risk capital. The choice is there for ALL. Some of you have sent me notes that it’s been a year, and you have yet to place a real money trade. Question: If you played hockey for a year, would you think you are ready for the big leagues? 99% of investors are total losers, so by NOT trading, you are ahead of 99% of them. That alone makes you a winner. If you generate ANY positive return consistently, you are LIGHT YEARS ahead of your competition.
22. As an aside, how Elmer Fudd of today thought he was “superior” to the average investor of 1929 is mindboggling to me…People are same now as they were 5000 years ago, never mind 50 years ago.
23. What I see transpiring in the bond market, is that most of the “high yield” market is going to collapse. It’s UNKNOWN what happens to the t-bond, because the Fed, and/or other central banks, could buy the bond to infinity, while driving the dollar down and sending gold to infinity against the dollar. The bond is a range pgen short for those of you obsessed with “getting the bond”. It’s not a TOP CALL. Remember when I STARTED a short pgen on the Dow at 9000, and told you it was a 9000 to 11,500 pgen with very modest capital? What happened? The Dow topped out at about 11,258 and I told you I didn’t “call the top”, but in fact I was OFF with my setting of the PGEN. I should have gone with 12,000 for the peak. You don’t want to see every buy and sell filled on your pgens, because it means you are living on the edge of the cliff, and it’s only a matter of TIME….before the banksters BOOT YOU OFF.
24. The bond is a short here. The technical oscillators like RSI on the WEEKLY CHART are on top of Mount Everest in terms of being overbought, yet the daily chart shows yet ANOTHER blast to the UPSIDE is EASILY POSSIBLE.
25. Some of you shorted the Dow into the EXACT BOTTOM at 6500../ while I BOUGHT IT. By the time I started my MICRO positions on the short side at 9000 you were TOTALLY ROASTED, yet some continued to add MORE shorts to CALL THE TURN. I was NET LONG as well! By 11,000, only ashes remained for the bulk of the gold community’s MASSIVE Dow short positions carried, incredibly, with NO LONGS. It was a HORROR SHOW. You drove thru 5000 red lights at 100mph, and then wondered why you crashed and died.
26. Don’t repeat those TACTICS if you attack the bond.
27. Focus on making a SMALL WIN, not being the hero of the gold community for betting the ranch on a bond mkt lotto ticket.
28. While the interest is not that big, some of you asked me about a DOW FUND. The best Dow investor I know is Mr. Macro. Most gold writers are failed investors, especially in the stock market. Mr. Macro is not a failed investor. King Kong calls him the best stock market investor in New York. Mr Macro currently has his party people in CALL options on Barrick Gold, and I told you when he BOUGHT them months ago. Using professional tactics, he allocates no more than 1% of his people’s capital to such a play and looks to get his risk capital off the table when the options double, holding the rest for the “big score”.
29. Barrick blasted to a new recent high yesterday, part of the entire metals market that is in the PROCESS of CONFIRMING the action of the GOLD PRICE. The banksters are going to put team “non confirmation” in the financial GAS CHAMBER. Running a PGEN on what Mr. Macro DOES with the Dow/SP500 could be very interesting indeed and could attract enormous institutional interest. The stock market dwarfs the gold market in terms of institutional interest, and if we get into a situation where institutions fear hyperinflation even in a small way, they will STORM into the stock market like a herd of bull elephants going thru Elliot BearWave RicePaper.
30. There are TRILLIONS in cash held by institutions. If the bond market lights on fire AND the institutions fear hyperinflation, the Dow will look like the New Faithful geyser, with OBSCENE liquidity flows going ALL IN on the deal on the BULL side. It’s about LIQUIDITY FLOWS. Not charts!!
31. Corn. Another new high today. Sorry Mr. Fudd, I know you thought people would stop eating and that “risky” corn would go to zero, just like your golf ball advisor promised it would, but… no, it’s still here, AND SO AM I! Actually, in his own case, that’s probably an accurate statement for Mr. Fudd, and I do hope he’s enjoying his new diet of those highly tasty Fannie and Nortel stock certificates.
32. Sorry, but I gotta go; my corn on the cash register cob is ready for buttering!
See you out there, in the GOLDEN PopCORN Machine!
Thanks
Cheers,
st
Thank-you
Stewart Thomson
Graceland Updates