Graceland Updates 4am-7am
Email: stewart@gracelandupdates.com
Oct 8, 2010
1. The Drum Roll Please.
2. Report Card Day is here.
3. Did YOU sell any gold and gold-related items into this week's super strength, into gold 1366 and silver 23.50? GoldLion had to call the 100 fire departments this week, because the nuclear reactor powering his cash registers started to overheat. Yet, he's now back on the BUY.
4. The PGEN buy.
5. Not the "I've got it all figured out" buy.
6. Sadly, that is NOT the case for most of the gold community, nor for almost ANY of the mainstream community.
7. When a market, like gold now, begins to potentially correct, here's what happens: all those who were obsessing about getting in on the upside action, all those who failed to buy one cent of gold on ANY of the MYRIAD of corrections of the past TEN YEARS, announce these brilliant words to the world, announce these brilliant words to YOU:
8. "I Wonder".
9. They wonder if gold....could fall further. Thoughts of higher gold diminish. Instead of responding to price, as the world's greatest gold juniors trader GoldLion did MODESTLY yesterday on the pgen BUY, millions of Fudds begin to wonder -out loud.
10. Question: Does wondering make you money? No. Action in the gold market makes you money. The various Fudds out there are starting to make genius statements like, "if it corrects further, I'll definitely buy." Sure they will! Fudd won't buy 10 cents of gold if it falls $30 an ounce, but he "pwomises" to buy if it falls $50, $100, or 200, or 300 right?
11. Wrong. Fudd isn't going to buy any gold if it goes lower, because his "wonder mode" will turn to TERROR, and he's not buying any gold now. ONLY if gold blasts higher, thru 1400, will Fudd then buy gold, and do so in a price chase.
12. "Would all Fudds please report to the price-chasing wheel, attention, attention, gold is now $1425, time to buy, it's free money, follow your primal urges and buy now." -banksters, gold $1425.
13. Today is JOBS REPORT DAY. That is volatility day, for you. So far, since yesterday gold has tanked to 1325 overnight, spiked to 1345, tanked back to 1330, and spiked to 1340. What's happening?
14. Answer: The Pgen. That's what's happening. Nobody is going to trade their way thru the gold market on technicals alone profitably,unless those technicals are RULED by the mantra of buying weakness and selling strength in a pyramid formation. Sorry to break the bad news to the chart fantasizers, but that's reality.
15. This is microscopic volatility compared to what is in the pipeline as we cross 1400 and wave goodbye to the $680-1033 bull h&s continuation pattern support ship. Picture yourself on a Gold Cruise Ship and then 20 banksters walk up to you and throw you in the water. THAT is what is coming over gold 1400. YOU ARE ON YOUR OWN.
16. The gold newbies have zero clue what the banksters have planned for them. Hope you have your popcorn at the ready. For the mass financial heart attack show coming to the gold stage. The banksters are on the phone to Orville Redenbacher right now. I suggest you do the same.
17. "The dollar is a terribly flawed currency and is going to have big problems in the next decade. But that doesn't mean it won't go up. Everyone is very pessimistic on the dollar, including me. I wouldn't sell it right now." - Jim "mighty man" Rogers, Oct 7, 2010.
18. Jim Rogers bets against his own mind in the market. Do you? I've personally accumulated a decent USD position into weakness. I'm not calling for a rally. I'm preparing for one IF it happens, with a small portion of what I have allocated to the gold market.
19. It just makes perfect sense that the world's stupidest investors would believe gold is a high risk asset until it has quintupled. Then they are gold experts. As we cross gold 1400, is it: Line up to buy? Or is it: Line up to die?
20. See any trillionaire banksters in any price-chasing lineups in any market? No. I wonder why that would be...
21. Here's a look at the Silver Chart. If you are looking to establish tight range pgens in the silver market, note the red and blue HSR (horizontal support and resistance) lines I've drawn in. That is your "here and now" action range. If you want to act as money making players act, but acknowledge that you don't have their timing or risk management abilities, then you add a similar (preferably bigger) pgen above the supply line line and another below the demand line.
22. Basically, what you are doing is playing the 21.50 to 24.50 range. Welcome to the party. You are basically saying to yourself, "ok, some significant volume has changed hands at the 23.50 and 22.50 points. I'm not a bankster, I can't see where everyone's orders are, and I don't have a legal electronic printing press I can use to bail myself out of errors. So, I'll assume price is going either above 23.50 or below 22.50 and throw, into the garbage, all the wiener analysis from those who blew it totally at 1156gold, who are now telling me they know which way price will break.
23. I want to prepare myself so that if silver breaks out upside above 23.50, I'm a player, and if it breaks downside under 22.50, I'm also a player. I don't think I'll make any money listening to what wieners have to say. I think I'm better off roasting them and eating them." -You, oct 8, 2010.
24. Here's a look at the ultimate asset: Gold. In this case, we're looking the at the aprox 1365 to 1325 range. So you step up to the Pgen plate with LIMITED and RATIONAL risk capital, and then either set 2 more range pgens, one at 1365-1405 and one at 1285-1325.
25. OR, you set one bigger range pgen, at 1405-1285, or with parameters you personalize and tweak.
26. Some of you have noted certain issues with the ETF GLD-nyse. I only short that ETF as a means of booking profit on other long positions. I don't go long GLD-nyse.
27. Having said that, some of the other funds (GTU, PHYS, CEF) have issues with market price to NAV spreads that appear from time to time. These funds have a near 100% probability of holding all the metals they claim to hold, whereas it's a crap shoot with GLD-nyse, perhaps with the emphasis on the word "crap". SGOL appears very solid, but is priced at over $100 a share, so some of you don't like that.
28. "In the middle" on the risk-reward scale sits: IAU-nyse. I don't subscribe to the view that the comex is a house of cards. The comex is a bankster tool, yes, but it's a futures market. Futures markets have clearing houses, and money is moved from the losers to the winners' accounts on a DAILY basis, something that does NOT occur in the stock markets, that feature a THREE day settlement. IAU trades on the stock market, yes, but the underlying asset is based on something pretty solid.
29. Once again, Fudd has been told that futures markets are risky, when they are actually set up with more safeguards than stock markets. If YOU personally use leverage, buy assets with money you don't have, then you are at risk, and the clearinghouse will make sure you or your broker pay what you owe if you play leveraged wienerhead and blow yourself up.
30. The IAU is an ETF based on comex futures. It trades at 1/100ththe price of gold. Without any big market price-NAV issue. For inner and outer core positions, you may be most comfortable with items like Sprott's PHYS and the Central Gold Trust (GTU). For trading action, I don't see an issue with IAU.
31. At aprox $13 a share, and this is important, you don't have the fear that is associated with buying gold at $1300 a "share" while the banksters shove you out on the window ledge of a 1300 storey high building and say, "hey, investor, look down there, that's where you are going, onto the pavement 1300 floors down, just sell now and avoid the pain." When you can retort, "it's only 13 bucks, I'm not afraid of you Mr. Bankster", that gives you a SUBSTANTIAL mental edge, and since the markets are "only" 99% mental, that is a huge tool you have at your disposal.
32. The same thinking applies to juniors situations.
Let's finish the week in strong mode, not "Gee, I wonder what's happening mode". Let's continue to respond to respond to price with firm and rational action.
See you there, on the GRID.
Thanks!
St out
Thank-you