Graceland Updates 4am-7am

Sep 9, 2010

1. The Slope of Hope. When gold tanked from 1266 to 1200 in basically one day, it caused high volume panic selling.

2. By the time we fell to 1156, the panic had morphed into dejection. The gold & fund community was demoralized.

3. While YOU bought with the PGEN.

4. NOW, Hulbert’s Gold Timer’s index shows a 7 month high in the level of bullishness amongst the same people who were NEGATIVE on gold at 1156. They are bullish now, while YOU sell, with the PGEN.

5. Personally, I’ve scanned the gold sites, and there’s a lot of gold bull BLOWHORNS being sounded.

6. There’s almost a feeling that gold can’t fall down at all. You are dealing with a rare combination of a market poised to explode higher in a potentially parabolic move, a severely technically overbought situation on a lot of the daily charts, AND most timers OUT of the market. They booked NO PROFITS on the $100 upmove, having bought NOTHING on the fall to 1160.

7. Some of you may get frustrated if you see gold run even higher, perhaps to $1300 or more. Remember that rises and falls can take many FORMS, and it’s almost impossible to predict the type of formation.

8. Some rallies feature very limited selloffs, while others gyrate wildly. While the gyrations might SEEM to serve those waiting for a correction to buy, the reality is that as price gyrates down, most of “team correction” then changes their mind, and instead LIQUIDATES IN FAILURE, FEARING FURTHER DECLINES.

9. The theme becomes, “well if we go much lower, then it could get bad and we have a much bigger fall”. This is not analysis, it’s FEAR. Fear that is accompanied by LOSS BOOKING.

10. The professional investor doesn’t miss out on anything. Only LOSERS miss out, and all they are really missing out on is:

11. MORE LOSSES.

12. As a professional trader, you BETTER have sold your positions BEFORE the mkt tops out, WELL BEFORE IT HAPPENS, or YOU FAILED.

13. Selling at the top isn’t a victory. It’s FAILURE. It’s a LOTTO WIN, and I can almost GUARANTEE all lotto winners who are playing the lotto with big money that the next draw is going to see them get SMOKED.

14. Anyone who bought GDXJ in a pyramid formation on the last decline into the lows and sold into the current rally, if they are now OUT of their [trading but not their core] positions, did not make any error. New declines will come, declines that make you so AFRAID that you’ll HALT your buy programs, thinking, “this can’t be.. this isn’t real, the gold market is FINISHED!”

15. ALL the pros I know are SELLERS of gold TRADING positions into the current strength. They ALL hold core positions too, and they are ALL holding them with an iron hand, as am I.

16. Just go back in time, and look at the various rallies and declines on the charts. Nobody calls the top and bottom to all those moves, AND THIS ONE IS NO DIFFERENT.

17. Let’s put all the “live by the exception” prizes being handed to you by the gold CHEERLEADERS back into the cracker jack boxes, where they BELONG. You didn’t build your BUSINESSES by reading the jackerjack box live-by-the-exception prize instructions, and you won’t make any money in the market, CONSISTENTLY, by doing that either.

18. Look HARD at those around you who are buying gold now, PRETENDING they are PLAYERS, when they are in reality lifetime market LOSERS and TRADE-A-HOLICS. I don’t buy strength, and I don’t play top or bottom caller, which is why I don’t lose money in the market.

19. $100 an ounce in gold bullion is NOT good enough for these people and nor are 20% -100% gains in the juniors in 8 weeks. They want MORE. That’s called a HOG. The banksters are piling on tens of thousands of short contracts and when gold goes south, the gold cheerleaders are going to look like a bunch of ants in a jar that the banksters dumped a stick of dynamite into.

20. I EXPECT gold to make a new high. Which is why I bought additional CORE positions into 1156 and TOOK DELIVERY. [This is the you-gotta-hold-the-physical thing. ] I had no clue that 1156 was the bottom. If we had gone to 1130, I’d have bought MORE.

21. Where does this rally end? Maybe it’s over NOW, who knows, who cares. Maybe it runs ANOTHER $100 higher. Who knows, who cares. If it runs higher, I sell more trading positions. END OF STORY. If YOU are OUT, then you WAIT for gold to start selling off.

22. THERE IS NO LAW THAT SAYS YOU NEED TO BE IN ON EVERY PART OF EVERY UPMOVE. THE LAW IS: THOSE WHO TRY THAT GETEXTERMINATED BY THE BANKSTERS. THAT’S THE LAW. FINANCIAL EXTERMINATION IS AT THE BOTTOM OF MY LIST OF FINANCIAL PRIORITIES. HOPE IT IS FOR YOU TOO.

23. If you are OUT of gold with your trading positions, you should be CHEERING as you watch gold go higher, just as you should be cheering if gold turns UP long before filling all your BUY orders in a decline. The perfection seekers are the DEADBEATS of the markets world. Never forget that. Seek IMPERFECTION.

24. Everything in the markets is topsy turvy, which I why I constantly harp on the “seek a mental and emotional state of MILD CONFUSION” to SUCCEED credo. Remember that BILLIONS of investors (not 10 or 20 people, but BILLIONS) just were reduced to CLOWNS by the banksters in the stock and real estate mkts. They focused on analysis and HATE the idea that somebody CONFUSED could MAKE MONEY CONSISTENTLY. That doesn’t COMPUTE in their BRAIN. Think carefully about what I’m saying.

25. GoldLion had buy orders down to 900 on the latest fall to 1156. Hello? Anybody home? I said: 900! Not 1154 or 1150!!!!! You do NOT want price to be going into the bottom of your pgens each time before it turns up or you are a financial firecracker looking to BLOW.

26. Guys like PAUL TUDOR look to hire traders with LOW DRAWDOWNS and modest or even low performance, not CANNON BALL SHOOTERS. Not top callers. Not bottom callers. They want CONSISTENCY THEY CAN LEVERAGE.

27. The last thing on the planet they want around is “Mr. Big” who “knows” where the market is going next. Make 1% a year consistently with the lowest drawdowns in the world and you have the holy grail of the markets. Think mass production, increasing lines of production. Not a one-sale deal.

28. Make 80% in your account in a couple of months and brag how you called the big move, and Paul Tudor looks at you like you have EBOLA. Many funds will LIQUIDATE a trader’s positions if he/she makes 10% return in a short time frame. That’s more than enough action, more than enough volatility, and they take the gain. While thanking the Wildman for his performance, they then TERMINATE him.

29. For those of you who DO like to play bigger, read the above point “only” 250,000 times and DO IT. Leverage your own consistency in the pgen. Don’t plop into the market with the big turn calls. IF you have been running a number of successful pgen cycles and want to build on that consistency, here’s my suggestion: Try 1% leverage to start. Not 50,000%. Firms like interactive brokers will give you rock bottom financing in many cases. Picture Paul Tudor watching over your shoulder as you act in the market. Would HE approve of your action? Make sure the answer is YES.

30. Uranium blasted higher yesterday, ringing a bunch of your cash registers, and some already kicked in a number of rebuys hours after you rang the register! I’m posting the short term chart on the site now, US traded version of the fund, Uranium Participation Corp.

Grid Time is my signoff. Not Top Call Time. Not “We’re missing out time”. Not bottom call time… There’s a reason for the signoff. It’s called CONSISTENT WINNING. Stay strong. Stay firm. Stay professional.

Grid Time. See You THERE…and there ONLY.

Thanks,

Cheers,

Thank-you

Stewart Thomson

Graceland Updates