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Graceland Updates 4am-7am Email: |
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Oct 30, 2010
1. A key component of the PGEN that I want to cover today, is the pgen FLOW. 2. As each day begins, the banksters go to work to decide whether to move gold higher or lower, and how to do it. Over time, gold establishes a minor trend. Minor trends are approx. 1-3 weeks in time. They are sideways, up, or down. 3. Intermediate trends are moves longer in time, typically a few months. 4. Major trends are trends that usually last 6 months to many years. 5. No trend means anything if you sell out in failure, or operate from a generally demoralized emotional state. 6. The professional operates to sell into strength and buy into weakness, as I have "mentioned" only about 10 million times, and may have used the odd sledgehammer to mention it. I almost apologize if I have used a sledgehammer on occasion, but if it is only every day that I have used the sledge, then there is nothing to apologize for. The market is about hard training, not tiddly winks. It is definitely NOT about Friday nite analysis after a round of alcohol. Look at when I write my letter. Look at when hardcore business people are at work. EARLY. If you are retired, sure, cruise the gold sites, read a number letters late at night. But on the work side of things, you should not be operating from THAT state of mind. Operate in the poverty zone, in the discomfort zone, the GRIND zone. Stay hungry or get blown away by those who are hungry. 7. Check out the video report I posted on PGEN TACTICS yesterday. As a budding pro, you want to operate like a cat in the market, a tiger. Move fast and go for the kill. This is an ultra-important point:As the market is moving higher, different tactics are required with your pgens than when it is moving lower. When the market is falling, you want to use an iron hand to stop yourself from picking your pgen nose; you do not continue buying once price has moved below your pre-set final buy. 8. As an example, the highest price that most of you paid for natgas is a solid price, in terms of the likely upside. But solid accumulation programs can be turned into horror shows with you starring as the VICTIM of the show, if you create a mindset where you feel you must be a player at every price point with capital that is far beyond what is rational, and far beyond your original amt you set in stone for that asset. 9. NEVER LET PRICE ACTION OR NEWS CHANGE THE TOTAL AMOUNT OF PRE-SET CAPITAL YOU ALLOCATED FOR AN ASSET AS A WHOLE, BY ANYTHING BUT A TWEAK. SETTING CAPITAL FOR A RANGE PGEN IS ONE THING, AND SETTING CAPITAL FOR THE ASSET AS A WHOLE IS ANOTHER, MUCH MORE IMPORTANT ISSUE IN TERMS OF SURVIVAL. 10. When you are buying a rising market (or a potentially parabolic market like gold) you need the OPPOSITE mindset as price rises. You need: FLEXIBILITY. Missing out on reward is not the same as being damaged by risk. Not at all. I've talked about the need to be a player over a $300 gold price range with a static pgen, with $100 being the bare minimum. 11. The 1156-1387 rise was $231, and if you followed my lead on the $300, you still have positions on the table, and I mean TRADING positions, that you bought into 1156. If you use STATIC pgens, you need to cover a wide margin of possible price movement. If you use FLUID pgens, which I do on a daily basis, you can operate with tighter ranges. 12. The 1387-1315 fall was 72 dollars. The 231 dollar power move up was NOT SOLD AT ALL by the gold BLAB gang that met recently with their golf ball advisors to discuss chasing price in gold. Why? Answer: Because the boneheads had NO GOLD. That's why. 13. They sold nothing into 230 of strength and bought zero into 72 of weakness. That's the reality of a gold market WIENER. 14. They pretended they actually knew what gold would do next, and after TOTALLY BLOWING $1130 of up price action (from $250 to $1380!!!), the MORONS sat there with straight faces actually pretending they had any clue what gold would do next, to determine a GRAND PRICE PLOP POINT, where they would enter this "asset that could be here to stay", and do it on a "correction". I almost had to join the banksters in a laughing contest as I watched Fudd's CLOWN ACT on upside, and then an encore performance on the downside. I said, approx., "no, nothing will be bought, gold will either turn UP before they buy, or tank and terrify them and they'll buy ZERO ounces and ZERO shares". 15. Gold DID turn up. Those of you subscribed to Graceland Juniors (www.gracelandjuniors.com) should view the report I did last nite on the BMO Juniors ETF blasting to a new ALL TIME HIGH yesterday. I told you MONTHS AGO that the juniors sector would not only catch up to bullion, but BLOW IT AWAY in terms of upside action. It's ALREADY HAPPENING. New high on juniors! Where is team non-confirmation now? Possible Answer: Holding a high voltage wire in their mouth. My mature question to them is: HOW DOES THAT FEEL? 16. I spoke to the President of Alamos Gold for about half an hour yesterday on the phone. He said, "we're not a junior anymore, my partner and I built Alamos from a property with $500,000 in the bank in 1996 to a $2 billion company with $170 million in CASH and we're funding our operational expansion from CASH FLOW". Many of the "juniors" in the BMO and GDXJ ETFs are really now INTERMEDIATES. He definitely knows EXACTLY what he is doing. Put that kind of management power into the PGEN IRON BOX, and YOU as an investor stand to do well. His target for the stock is $40, "only" about a QUADRUPLE from HERE. He's sold NONE of his own core position in the company that he's held since the late 1990s. Alamos also pays a DIVIDEND. A junior paying a dividend! 17. As price moves higher in a bull swing, YOU are, overall, a profit booker, of trading positions. In the strong season for gold (NOW) you want to err on the side of selling TOO LITTLE. In the weak season, you do the opposite; err on the side of selling too soon. 18. You must be flexible with your buy side pgens. When you get into situations where the PLAYER is the dominant market participant, you can adjust your pgens to accommodate that reality. 19. You can adjust the buy and sell increments, and the amounts allocated to core versus trading positions. That is one important group of tactics. 20. Another important group of tactics that should be employed, involves something I do on a daily basis in the market WAR; using fluid (changing) pgens to accommodate moving market conditions. 21. Let's look at the Dow as an example. The Dow is currently around 11,000. Let's say you are expecting a possible sell-off in the Dow here (some selling has already occurred). You look at the season, and think, "crash season is over, and while anything is possible, I'd like to get in, I'd like to take a bet that if gold goes parabolic, the Dow could follow and possibly even outperform Gold. That covers my gold confiscation risk, as remote as it is, AND gives me exposure to upside reward. Sign me up!" 22. So you set a Dow PGEN. Let's say you pick 11,200 as the high and 10,700 as the low, using a range pgen. You are a buyer every 50 points down. Price drops to 10,900, and you grab two buys. 23. Then price rises violently thru the 11,000 topside and blasts to 11,500. Price just blew thru the roof of your PGEN. You start pulling your hair out, right? In my case, I've lost a lot of hair so that's not a major issue. Seriously, no you don't get upset, you CELEBRATE the fact you grabbed some Dow that is now in the black, and you may have booked a bit of profit on the trading portion of what you bought. 24. The next step is decision time. You either leave the pgen in place, or modify it to the new range. You do NOT kill what you already bought, what already WORKED. But you may need to raise the PGEN up to accommodate the NEW DOW REALITY. 25. Where AMATEURS get it ALL WRONG is they think in terms of CALLING the next move, not RESPONDING to it. If the Dow is then 11,500, you may want to start a new Pgen that takes into account the upside breakout thru resistance, the possibility that an upside leg may be about to start. 26. Here's a look at the Dow's intermediate term HSR lines in play now. 27. You want to be careful about betting too much money on TODAY. I told you that the put options parade people would lose money in the Dow because they operate TOO FREQUENTLY. They made money in the flash crash, but couldn't book it. The banksters played with the computers and only they got filled, big surprise. Then Team Put Options got a win as price fell to the flash crash lows, but that was followed by failure to call the ensuing moves. All the booked win money evaporated in booked losses, for most of the put options team. 28. We can't know if the Dow is going higher or lower from here. Your PGEN may get filled, or it may not. Don't be afraid to kill a current set of buys before they are all completed, and start a new pgen at either a higher or lower price to accommodate the new reality of the market. Respond to the market's reality rather than predicting it. 29. Here's a major reminder of the pgen TRIPOD I set for the GDXJ. 30. As the 1387-1315 range was set, it became immediately clear that price would either stay in that range, move below, or move above it. Predicting which of those outcomes would occur, I left to thewiener patrol. Responding to whatever happens, I left to....ME. And to.... 31. YOU. 32. All I tell you to DO, is all I am DOING myself. Look carefully at those 3 GDXJ PGEN nets. Price has moved up to the 36 area, up into the top net. Look at how the lower net played out. I got fills into yesterday morning, buying gold every 3 dollars down. 33. Now, we're into the top net area of the current 3 net play. Notice the huge difference in the size of the buys. The size beween the buys in the 37 area vs the 34 area. You can have larger buys at a higher price but within the confines of the series of the range pgens. 34. We're not here on this earth to predict WHETHER GDXJ goes to $40-45 on this move. We're here to respond to it professionally if it happens. Here's the bottom line, the bottom GDXJ PARTY LINE: 35. If GDXJ, or your individual situations IN PLAY NOW, fall BY THE AMOUNT OF YOUR BUY INCREMENT, you are a BUYER. I've booked a boatload of wins in the mid-net range, on trading positions, added to core positions, and am fully prepared to ENJOY buying and selling in the top net zone OR in the much lower net zone, OR in the current net zone. 36. Question: Is the colour of money made in the top net zone a different colour from money made in the lower or middle net zone? 37. I say: If it's money, let's go get it!!! 38. The COT reports show a partial picture of what the banksters are executing on in the gold market. Not the whole picture by any means. I noted the overall rise to 42,000 longs on the site yesterday, in the silver mkt, by the banksters thru Tuesday. Numbers over 40k are typically EXTREMELY bullish for silver. 39. Look out junior silver stocks, if price blows upside thru $25. You might not be able to handle....all the profits! 40. During the day, THOUSANDS of gold contracts.... CHANGE HANDS. The difference between a day trader and a real gold market pro is the pro doesn't care when they sell. They could sell 5 minutes after they bought, or 5 months after they bought, or even 15 years after they bought, with some positions. The banksters are constantly adjusting their buy/sell programs. You may start to buy, then price blasts higher after your first buy. GoldLion has mentioned this phenomenon often. Once price rises, there is a new reality in play. Respond to it. 41. I'll post some videos this morning on the site covering the static/fluid pgen factors in more detail.
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