Graceland Updates 4am-7am

Sep 13, 2010.

Reminder that I’m in Vancouver for 3-4 weeks. Update goes out around 9am, I get up at 4am,Vancouver time. Thanks!

1. Juniors, juniors, juniors. The next 9 months have the highest probability of seeing you make the most money in the shortest amt of time, with the least amt of system risk, since the beginning of the gold bull mkt.

2. The early stages of the bull saw greater percentage gains in some of the juniors, but it also saw many burn up at the starting gate.

3. The time for juniors to shine is the first and 3^rd stages of a bull market.

4. At the 2008 lows, price entry risk was lowest, as price fell 70-90%, but system risk was astronomically high. At that point, you had TWIN benefits in your favour; the distance to zero was almost as low as it was at the start of the gold bull mkt, AND you had massive price weakness.

5. Horrifically, Elmer Fudd will look you right in the eyes today, and tell you there never was any risk at those lows, but the reality is the whole system was hours away from shutting down on the day of the Oct lows in 2008, and arguably again in march 2009.

6. Fudd is now proudly invested in junk bonds, his growth with safety clownshow that he knows can’t fail, just as he knows rates can never rise, because the banksters and the Gman say so.

7. If there’s a price to be chased by a rat on a wheel, you can bet all the tea in china that Elmer Fudd and his golf ball advisors will be there, and engaged in a mountain of JUSTIFICATION for their actions that they call “analysis, and that is the rule, not the exception.

8. Sheila Blair, head of the bankrupt FDIC, says the govt is taking on a new level of risk by guaranteeing all players in the mortgage mkts. Tim “the terminator” Geithner has said the guarantee game will go on, but his words are deliberately obscure, and I believe he means a CHANGE is coming on that front, involving mortgage RATES. If the Terminator does make such a change, you can bet money that Sheila Blair [Bair] is likely toast.

9. Last week was a phenomenal week for many of you, and I want to reiterate the power of the Pgen account that hits a new high WHILE hitting high levels of CASH in the account. You can always leverage what is working or add capital to make the show bigger. It’s a little harder to leverage what has FAILED or is ON FIRE. Be patient. Start small.

10. The danger of carrying low cash levels should never be underestimated. Even if you are running leveraged trading acnts, you should still be carrying many times the required margin in the acnt. In gold, all the average trader can handle is a $15 move down before they face a LIQUIDATION ORDER from their brokerage, which itself is facing the SAME ORDER from the CLEARING HOUSE, which itself is on the edge of the same order from the EXCHANGE.

11. To WIN, the timer must be able to withstand price movement against them greater than your competition. Thinking your knowledge about where the mkt is going will replace the ability to “be wrong over substantial price movement” is not going to get you CONSISTENT wins in any mkt. Quite the OPPOSITE will be the case.

12. Barrick Gold is trading between about 39 and 47, and has been doing so since may. If you stretch the chart back to the highs of December, the range become about 49 to 33.

13. What that does is open up the possibility for a range pgen, or a series of them. It’s critical that you always look BEYOND your current focus. If your focus is long term, look short term. If your focus is short term, look long term.
With Barrick, the door is open, perhaps, to a range pgen between aprox 47 and 55, another in the 39 to 47 area, and another in the 33 to 47 area. As an alternative, a bigger 33 to 54 area pgen could be employed. Below is the barrick chart with the current price area highlighted. Note how price has moved up and down in the zone generating pgen wins. Has ANY timer called all those moves, or even a portion of them correctly? NO.

14. One BIG positive for Barrick, and the whole gold stocks sector, is that while price has moved sideways on barrick in this range since Dec, VOLUME has drifted LOWER. That’s what you WANT to see in a CONSOLIDATION.

15. The Consolidator Consolidates

16. If Team “Non-Confirmation”’s fantasy were reality, we would be seeing HUGE VOLUME, as MAJOR BIG MONEY DISTRIBUTION took place. That’s not happening.

17. A few of you are confused by my statement that the godl bullion bull mkt is likely closer to an end than a beginning. Nobody, except the banksters, has any sure knowledge of where the bull ends. One thing you can be reasonably sure of, is that when paper money is revalued lower to make debt payment easier, that’s not a 1 day event. It’s a huge multi-year or even multi-decade process. A PAYMENT process.

18. Those looking for some blowoff like in the 1970s, with Fudd lined up in the street to make big money…they are not studying the market fundamentals. Gold is a control mechanism, and higher gold prices must be MAINTAINED to allow DEBT PAYMENT to also be maintained. There’s hundreds of trillions of dollars of paper money OWED to the banksters, and the banksters want their money, or at least a good chunk of it.

19. If gold tanked after skyrocketing, we are all right back where we started, with a huge paper money debt owed, and paper money rising in price, making it impossible for the debtor to pay. This gold market is NOTHING like the 1970s bull. It is VERY much like the 1930’s bull, which saw gold re-valued and maintained at that re-valued price.

20. Back in the 1970s, the central banksters argued vehemently for a LID on how much gold the Treasury could own, because the GAME then was to CREATE DEBT.

21. Now the game has changed. The game now, is to COLLECT THAT DEBT. You will soon see the central banksters arguing that the govt treasuries of the world should be allowed to own MORE GOLD. Why? Answer: To devalue the dollar to make that debt payable on an ongoing multi-decade time span.

22. One of you reported you got hit by a nasty trade error this morning, getting filled around $5 on a nyse-trade $50 stk. The steps to take if that happens is to contract your broker and try to have the trade busted. “Busting the trade” is an actual markets term. Market markers, mainly the banksters, will try to buy/sell stock at prices far outside of the established bid ask range. You need to also contact the exchange and the company itself, whose stock is traded. I was once filled at a 200% gain on something I sold at the market, thinking I was booking a 5% gain. I don’t use market orders anymore. You can also try to enter orders for existing positions from your ACCOUNT screen. Don’t do it in the quote screen. When you click your account, it generally opens up a buy/sell box with the number of shares you already own, so you need to change that, but at least you have the correct ticker for the security in question. Everyone I know who operates in the mkts, including myself, has gotten hit at some point with a trade error. It’s part of the game, unfortunately.

23. You ALL know that gold is vastly less risky than paper money, yet, until now, you’ve had to deal with the fact that while it’s almost impossible for gold to go to zero against paper money, the price can be moved down a lot, at any time, by the banksters.

24. I would argue that while gold maybe become even more volatile over the next 9 months or so, I think you can have a level of confidence related to bullion that didn’t exist, couldn’t exist, until now. Gold is starting to trade, in my view, in ANTICIPATION of its coming role in devaluing paper money, and in HOLDING that devaluation in place for TIME.

25. So even when it comes time to sell gold to buy bonds, it’s not about selling gold because it will go down; gold in fact could continue to be ratcheted HIGHER in further revaluations, further central bank/treasury buying of gold, if the issuance of debt, the velocity of debt issuance, does not decline.

26. It will simply be that the interest paid on the paper money debt instruments, COMBINED with the gold link to the amt of debt that can be issued make the holding of dollars that pay interest the better deal. Fudd’s current and MORONIC plan to buy dollar debt and paper money cash JUST BEFORE the banksters STOMP on it is going to go down in history as an error equal to the buying of stocks in 1929. The only thing that has changed with the price chasing rats on the wheel, is the names of the rats and the uniforms they wear.

27. AFTER the revaluation phase, gold is headed towards a “BOG” trade. Ranging back and forth in a tight range that COULD have a SLIGHT upwards bias, as the Gman begs the banksters to let him issue more debt. More debt issued means the Treasury/central banksters have to buy more gold to push the value of the gold horde higher.

28. While bonds will be a RELATIVELY better investment than HOLDING bullion at that point…..

29. It could be argued that we will see the birth of the ULTIMATE PGEN. If gold gyrates in a PRICE RANGE for YEARS or DECADES with THAT range maintained by the BANKSTERS, if could almost be “FREE MONEY” for those that trade that range with the pgen.

Grid Time. See You THERE.

Thanks,

Cheers,

Thank-you

Stewart Thomson

Graceland Updates