Graceland Updates 4am-7am
Email: s2p3t4@sympatico.ca
Sep 24, 2010
1. How high is high? As the stock market began a secular bull market in 1982 (with the public totally OUT of the market), Bob Prechter made “waves” when he predicted the Dow could hit 3000. That seemed surreal at the time.
2. In June 2007, gold rose to $725 from about $640, in the June to October timeframe. The technicals became overbought, and the technicians sold.
3. What happened? Gold went straight to 1033.. WHILE overbought.
4. The PGEN outer core doesn’t get much “show time”. It’s like classical music to the rock and roll trader: BORING. Question: Is more money more boring than less money? I’ll let you decide the answer to that question.
5. Most investors are either crazed gamblers or buy and hold the bag specialists. So it makes sense that the trading positions get centre stage most of the time, and the inner core positions are in a close 2nd place on that front.
6. Just to remind everyone that this is a GYM-type newsletter, not a magical FatHead “I’ve got it all figured out now!” newsletter; consistent, repetitive ACTION is what generates consistent winning.
7. Outer core positions are sold at a preferred minimum of TEN TIMES the buy increment. Let’s repeat that together “only” 200 times.
8. Personally, I will often use separate accounts to handle trading, outer, and inner core positions. Typically, for individual gold STOCKS, I like to take delivery of inner core positions. That accomplishes numerous goals, one being that the accounting of the situation is taken OFF the brokerage balance sheets, which is what you want to do with an inner core position; you don’t want to be looking at it very often, because you are attempting to hold it for the duration of the bull market. That’s the MAIN DEFINITION of an inner core position. Since THAT is you GOAL, you want to DO WHAT IT TAKES to ACCOMPLISH that goal.
9. With outer core positions, particularly in FOUNDATIONAL pgens, I deliberately keep these in brokerage accounts with a HIGHER COMMISSION. Save a penny, lose a million is not my motto. When it costs $1 to liquidate an outer core position when it has a small gain but YOU are WORRIED about the position, you arelikely to liquidate if it costs peanuts to do so, destroying your own wealth building.
10. Likewise, you might CHASE PRICE if you have the ability to easily add all kinds of positions without any burden to you in doing so. “It’s corrected 1%, I gotta load up, really, this is a big correction”. Sure it is. Then price goes down for MONTHS and you liquidate in total failure.
11. When you are dealing with RANGE pgens, meaning pgens put on in a tight trading range, commission IS more important. How about if you are buying a stock every 50 cents down, or every dollar down, a junior situation, and selling 5 or TEN DOLLARS HIGHER? Then commission is NOT important.
12. The outer core strategy, in my own case in the juniors arena, has stepped onto the market stage, here and now. Suddenly I’m getting fills from another brokerage where I keep those positions. What is in my head as those fills come in now? Gee, that’s a tough question, but I’ll try to answer it accurately for you. How about:
13. Free Money Partytime! How about: Profit Booking Cannons on deck! I think those are two fairly accurate descriptions of how I feel and accurate descriptions of my outer core account action right here, right now.
14. “A lady has got to know her limitations.” –Clint Eastwood’s wife. OK, so it was Mr. Eastwood that said that, it was Clint himself, a minor feminist discrepancy. The POINT is that YOU have got to know YOUR limitations, as an investor.
15. NOW is the TIME of the PLAYER. Don’t try to beat the player with your pgen, when it is HIS TIME TO SHINE. Leave him alone and don’t get enveloped by jealousy. It’s his time, period.
16. As bullion rose up from 970 I called players to the gold options deck. Those of you who ARE players made a lot of money as gold went impossibly higher, to 1225.
17. I called players to the gold stocks deck, especially the JUNIORS deck, more recently. Today, as a PLAYER who acted on that call, your biggest problem right now is ordering enough wheelbarrows to count all the money! GoldBlood in England reports he bagged his first million dollar month in the gold market, meaning a million in GAINS for the MONTH. King Kong has probably made that in a day, and TRex in an HOUR, during THIS move. I’m not sure how Fudd has done, but we wish him well, as he sits in his paper money growth with safety blast furnace.
18. The PGENS made you EXCELLENT MONEY during the past 8 weeks of time, but no way can you beat the player when it is HIS TIME. His time to SHINE. His time to shine will have an END, just as it did on the night of 1225 for the bullion players like THE BRAIN, and when it DOES end, you will see how few REAL players there really are who actually know what they are DOING in the market. The rest will “flame out” and flame broil. Most of those claiming to be players are PRICE CHASERS, who are starting to look like a blob on top of a pin, in terms of their RISK CAPITAL ALLOCATION ACTIONS IN THE MARKET. When gold does tank, they will be DESTROYED.
19. Team PGEN will NOT be destroyed when gold tanks. You will be on the buy much more aggressively than you are on the profit booking now.
20. Sadly, Elmer Fudd Public Investor doesn’t understand how FEW opportunities there are for a REAL PLAYER in the market. So he swaggers up to the price-chasing trough and convinces himself he is a professional money maker in the market, because price HAPPENS to be rising during a SECTION OF TIME for the PLAYER.
21. I would estimate that perhaps 50% of the gold community has attempted to act as a player for most of their investment career. The PROBLEM is that there are only MAYBE 2 to 4 LEGITIMATE plays in a YEAR. Market boneheads like Sad Sack try to turn that REALITY into their FANTASY that the market will give them 1000 such plays, and if they use STOPLOSSES, then their RISK is MANAGED.
22. Let’s see, 998 losses, and then they actually MISS the bulk of the move on the couple of REAL PLAYS! What kind of RETURN ON INVESTMENT does THAT add up to in a YEAR? Let me take a guess:
23. How about… MINUS TWO THOUSAND PERCENT A YEAR.
24. If you look at a ten dollar stock that tanked into the lows of 2008, and you bought it every dollar down, all the way to zero, your outer core positions are sold every $10 higher, preferably a MINIMUM of every 10 dollars higher. As we rose to gold 1225, some of you were using fairly tight range pgens, and I suggested you consider going to 15, 20, 30 and even 50 times the buy increment, to manage the trending move during the time of the PLAYER.
25. If you have NOT yet sold enough gold so you are working with the MARKET’S money, not YOURS, then the last thing on the planet you need to be worrying about is selling “too fast”.
26. I want to you clearly understand that the BIG MONEY is made buying into the BIG HITS. You can’t ring the cash register big, if you didn’t buy big into those declines.
27. If you bought a stock at $10, 9, 8, 7, 6, 5, 4, 3, 2, 1, as it melted from 2006 to the lows of oct 2008, and now it is trading at say, $7, then your OUTER CORE positions are being sold at $11, 12, 13,14,15,16,17,18,19,20. You haven’t even sold any yet, but you are starting to be AWARE of those MONSTER CANNONS you have ON DECK.
28. Your supposed COMPETITION in the mainstream investment community, Elmer Fudd, has NO GOLD, and 95% of your “competition” in the gold community has NO BUYS ON YOUR STOCK, IN PLAY AT ANYTHING OTHER THAN THE $7-10 PRICE RANGE WHERE THEY BOUGHT. (if you call THAT being “in play”. I don’t.)
29. If you bought from $10 down, but used tighter buy increments, say every 50 cents down, then you are starting to BOOK PROFITS on your OUTER CORE. What you bought at $1 is sold at $6, what you bought at $1.50 is sold at at 6.50, what you bought at $2 is sold, TODAY, at $7, using my analogy of a stock that fell from $10 to $1.
30. I’ve talked in the past about further sub divisions of each of the 3 major pgen components, or increasing decreasing the percentage allocations to each. If you are buying with tighter increments, you don’t have the same upside “reach”. Somebody who buys that ten dollar stock every dollar down with their outer core has their FIRST sell at $11, while somebody who buys every 10 cents down has their last sell at $10.30. There’s a balance between frequency and upside reach that needs to be sought, but perfection acknowledged as: impossible.
31. The reality is that some stock you sold in the juniors arena over the past few days has already corrected by 10% and MORE. We’re back on the buy and only time will tell just how long that buy continues, just how much stock you get to accumulate, right here, right now!
32. OK, the euro blasted to ANOTHER high for the rally. We’re closing in on 135!! From the lows at 118!!! The PGEN has RULED the euro to zero trade, both on the down and upswing. Those of you who wrote me of your PAIN at 122-118 on the DOWNSWING should REMEMBER, exactly, WHAT IT TAKES to be a PROFESSIONAL, and apply your euro lessons to the GOLD MARKET. Right now, what I see looking out my gold market window is huge crew of price-chasing wieners wearing PLAYER uniforms.
33. There’s plenty of weakness in selected gold stocks that can be bought here and now. As we tanked into 1156, what did I tell you? Answer: I’m buying gold bullion AND taking delivery of it, so I don’t stare at the quote machine and freak myself out of it. Thanks to those informing me that bullion is now a buy, but I think we actually spent a month in the discomfort zone on the buy, which is why we are partying NOW, while they buy.
34. Today is report card day. Send ‘em in. Corn is up today. The MACD lines were “supposed” to cross, and then down would go price so the teckies could buy at their end-of-the correction magical buy point, candy-coated and ready for them. Oops, we’re back up again today. That’s why you have a TRADING POSITION, an OUTER CORE, and an INNER CORE.
35. There’s a REASON that paid sub billionaire and massive gold owner T-Rex bought gargantuan tracts of FARMLAND, not leveraged grain futures. There’s no ACCOUNT STATEMENT to stare at every day. When some teckie wiener calls him and says, “sell, the macd lines crossed!”, do you think T-Rex thinks, “oh no, I blew it, I better unload all this farmland, because teckie man holding 10 corn futures on 10% margin…he says I’m finished!” Don’t worry, T-Rex, you’re not finished. You’re going to make BILLIONS, while teckie man burns in the corn and wheat markets, like rice paper in a blast furnace.
36. Use what is going on now, watch what the big time PLAYERS are doing with outer core and inner core type market positions and…
37. DO THE SAME.
38. I think Shaw Cable, the internet provider I’m using here in Vancouver, thinks I’m a SPAMMER. I’ll be talking with them today. They seem to be blocking a bunch of my outgoing emails TO YOU. This happens every year I’m here in Vancouver, but it has always happened immediately, so I thought they fixed the issue since everything was fine until 2 days ago, when some of you are reporting you never got the update by email for the past couple of days. I’m driving to Starbucks to send out today’s update. Incoming is fine, so let me know if you don’t get the update..
Gotta roll, back on the juniors buy! Fills coming in! Let’s see if this weakness increases, and let’s see how the price chasers FEEL as it does, as we buy from them!
Thanks!
Cheers,