Graceland Updates 4am-7am
Email: stewart@gracelandupdates.com
Sep 29, 2010
1. Hi Ho, Hi Ho, It's off to ringing the cash register we go!
2. Gold and gold stocks staged another upside blast yesterday, after a minor sell-off that APPEARED like it might be the start of something bigger.
3. It appeared that way to you and I. To the PGEN, it DEMANDED we BUY. Gold was taken down to 1278 basis December and then soared almost $30 higher.
4. Gold Stocks followed, in most cases. You got about 6% weakness in the GDXJ from the recent highs, and we were "back on the buy".
5. Gold Stocks supertrader GoldLion has a word for you about VALUE. As the largest shareholder in a NUMBER of junior gold stocks, you can appreciate that he knows what it's like when a stock soars, and he knows it's like, what it FEELS LIKE, when a stock TANKS.
6. As YOU do.
7. He's a seller of TRADING positions into strength, here and now, via the pgen, and a buyer of trading positions into weakness, here and now.
8. A little bit of weakness can turn into a LOT of weakness. OR, it can be just that, a small sell-off followed by another move up. The move up itself could be big or small. You just can't know in advance, and as gold becomes more and more untradeable going forward with anything but the pgen, you will all find yourselves operating ALONE, with ALL the gold community's trading gurus waylaid by the gold punisher. All you will have is PRICE.
9. You, as a buyer, can have some ideas on whether selloffs will be big or small, but you can't really KNOW.
10. What very few in the gold community understand, and almost nobody in the public investor community understands, is that the banksters, who rule the markets, can take more and more of the other side of a trade for months, or even many years, while the price chasers BELIEVE they are on EASY STREET. Then it all tumbles down, impossibly, and the paper profits turn to a rice paper bonfire.
11. Those of you who were with me into the 2008 tanking, and actually BOUGHT gold juniors, are up hundreds of percent in virtually all cases, and in many cases multiple THOUSANDS of percent. Most of course, didn't buy. They SOLD. Sold hard and sold into the day of the LOW at MASSIVE LOSSES.
12. Value sits where? Answer: in uranium and natural gas stocks. We already bought huge core positions in gold stocks, and those are up massively, and a time will come when gold falls hundreds of dollars and the trading pgens will fill up with buys to the point we all say, "make it stop".
13. Buy value. Not demonic dreams.
14. When the BOND market finally collapses, I would bet that collapse is termed a "decision to RAISE rates to begin the liquidity draining process". In actuality, it will be a decision, yes. A decision to raise rates to massacre bond holders. The nogrowth with nosafety trade held currently, in size, by Elmer Fudd Public Investor will be revealed as a greater error than buying stocks in 1999.
15. I would expect a likely initial huge hit on gold as the bond mkt collapses, followed by a dramatic rebound to new highs as it is realized that rising rates is NOT WORKING to stem the institutional liquidity flows OUT of PAPER MONEY. All that rising rates will do is beat on the economy and beat on creditors. Ironically, the paper money DEBTOR stands to do well. Horrifically, Fudd is focused on holding cash, bonds (being a creditor) and paying down debt. WRONG.
16. Let's take a good look at the agricultural commodities, via the DBA-nyse ETF. The food grocery store is calling you, about the SALE, right here, right now. Buy the whole store? NO. Buy nothing? That's equally stupid. The technicals are overbought, and price has started to move down. The technicals can get a lot MORE overbought, while price recovers and goes WAY WAY higher. Again, unlike Elmer Fudd Master Investor, who together with his golf ball advisors know the future perfectly, WE just can't know what is coming, but we can RESPOND to what does occur, and do so with..
17. PROFESSIONALISM.
18. You are "back on the buy" in the "AG" (agricultural) sector, and I want those of you not playing the food markets to look at the chart anyways. Feel the weakness.
19. Nobody WANTS to buy this weakness and it FEELS different than the gold market feels. The gold market FEELING is an ILLUSION. The feelings you get now looking at the wheat market and the corn markets are buy action feelings you must COVET. That's the reality of what it takes to be a lifetime market WINNER. I'm not interested in a flip win at the cost of being a lifetime loser. NO WAY.
20. Those buy weakness feelings of discomfort are not illusions. On price strength in all markets, there is only holding core positions and booking profit on trading positions. Everything ELSE is an ILLUSION. An illusion followed by financial AGONY.
21. Here's theDBA Weekly Chart. Price appears to be working to burst out of a gargantuan basing formation, but the current downside action is sending the leveraged price chasers running. The Daily DBA Chart shows price in a tight range between about 27.30 and 28.05, with a larger range between 26.75 and the 28 area highs.
22. Your mission, should you decide to accept it, is to set your pgen buys so that whatever happens on the downside, you are not left in the fetal position licking the banksters' boots, because you bought too big, and then threw it all away, left in the audience watching price go to new highs for the bull mkt.
23. The DBA isn't a big mover, which makes it ideal for modest pgen action. I'll post a video on the site showing how you can play a range with a PGEN TRIPOD.
24. The banksters will do the same thing you FEEL them doing in the corn and wheat market now, to the current crop of price chasers in the GOLD market. You saw the DIVIDEND REINVESTMENT PLANS BURNED TO ASHES IN STOCKS LIKE GENERAL MOTORS by the banksters. 40 years of work burned to the ground FOREVER via an OTC derivatives bonfire that burned for a few months. In comparison, taking down the current crop of gold price chasers is like breaking a toothpick.
25. You will likely NEVER hold the IDEAL position in the market, because the nature of the market is that only imperfectionists make consistent money.
26. Which brings us to the OUTER CORE position accumulation I have underway now in the gold market.
27. I like to sell in big round number "bombing areas". When back on the buy, I FEATHER into the positions. What you don't want to do is feed yourself the fantasy that your outer core are suddenly trading positions that you can buy back cheaper later. Stick to the plan.
28. Is gold going to lead oil and the foods higher? In the big picture, gold leads EVERYTHING because gold RULES everything financial as it ALWAYS HAS. Fudd learned that the HARD WAY. Well, he actually hasn't learned anything. The more accurate description of Fudds' market experience is: He LEARNED NOTHING THE EASY WAY, and got TOTALLY FRIED. WE can't know if gold leads the foods and oil higher now, or the oils and foods lead gold lower.
29. We can, however, respond to what does occur.
30. PROFESSIONALLY.
31. I have to go now. My breakfast is ready. What am I having? Answer: Corn. How am I paying for my breakfast?
32. How about this answer: With profits booked on my gold stocks I bought into the lows of 2008 while Fudd blubbered on the floor selling to me as he watched the banksters burn his pipedream to the ground.
33. As you and I weigh the two options, price chase in gold with Fudd in one hand, act professionally and calmly in the other, there's no question that the DEMON that is TEMPTATION is operating in FULL FORCE right now, in the gold market. I feel it too.
34. The lessons of 1156, I firmly believe, are 100% forgotten, by 99% of the gold community.
See you out there...
On the Grid.
Thanks
st
Thank-you