Graceland Updates 4am-7am
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Nov 4, 2010
1. The week-end continues. How is your 5 day week-end going? Use the PGEN and learn what a 5 day week-end FEELS like!
2. Please remain calm. I've placed additional orders for cash registers for you, and they are on the way now. Here they are! GOLD at 4am: $1360!!! Up $35 from yesterday's low!!!
3. We may need to place additional orders for AMBULANCES for Elmer Fudd Public Investor today, as the banksters take a million volt high voltage line and stick it in his MOUTH while he clutches his JUNK BOND MARKET "investments" and mumbles, "but I don't understand, how could bonds fall down, while Dr. Bernanke just put $600 billion to buy bonds to help us, I don't understand, something is wrong, maybe there should be an investigation." -Elmer Fudd, Pofessional Bond Mawket Pwice Chasah, Nov 3, 2010.
4. "We know you don't understand Fudd, and that's why you're going to the BREAD LINE." -banksters, Nov 3, 2010.
5. Those who "stood aside because it could be volatile" yesterday MISSED OUT on one of the greatest trading days in many months in the major markets. Oh well, the list of missed days pretty much goes to infinity for them already. They might as well work hard to actually GET THERE.
6. Those of YOU who remained calm and remained professional in market action on the gold bullion, seniors, intermediates, and juniors price grids yesterday, well, you saw some phenomenal "sewing machine" action, as the gold items price needle threaded down into a lot of buy orders, then reversed the same day and set off sell orders in reverse! Kachingo, Kablingo, and it continues this morning!
7. I urged you to give serious thought to what I'm termed "The Institutional Awakening".
8. Did you see how many institutional fund managers were quoted yesterday as saying "something is wrong with QE, there's another side to this coin, and it isn't good". The banksters' latest scheme is "only" playing out 99% of the way they planned it to play out.
9. Here's the kicker: The institutions realize something is wrong, but they don't realize just how wrong it is.
10. Remember when I told you that an institutional money panic could occur either in the fall of 2010 or into 2011? A panic out of all paper money bond and cash markets and IN to the stock market? Few listened. Most were just obsessed with buying their one millionth put option on the Dow. There's almost 10 trillion in institutional cash sitting there. What happens if the banksters blow the panic IN to the Dow horn?
11. Congratulations to Bill Gross. First, for having the street smarts to eliminate possible liability to his fund as he calls the bond bull OVER (something Mr. Macro and I did 2 years ago at higher prices, but hey, let's give Billy his podium moment). The man basically just issued a massive sell signal on his own fund!
12. Second, Billy blames the drug ADDICTS as much as the drug DEALERS for the debt crisis. Something I have argued from the beginning of the OTCD crisis is the foundation of the crisis; buyers of drugs cannot claim they didn't know they were taking drugs. They were dealt drugs, yes.
13. The banksters are drug dealers. The Gman is a drug PUSHER. Think hard about that real difference between the banksters and the Gman, when assessing blame in the crisis, or at least how I view Gman. He's a piece of GARBAGE. Freedom isn't a stock to be traded on the market and the Gman is going to pay, bigtime, for making it appear to be that way. It will be technology that finally finishes the Gman. Payback is going to be LARGE.
14. While Bill Gross is basically issuing a massive sell signal on his own fund, will any of the boatloads of Elmer Fudd investors invested in his bond fund sell after the head of their own fund just told them to sell?
15. Almost NONE, at least until bonds really tank! Then they'll start crying and blubbering and liquidating and asking about GOLD and the STOCK MARKET. Exactly as the banksters planned would happen.
16. The banksters are financial drug dealers that deal the bonds and OTC derivatives that fuelled the debt crisis. They deal them to teams of greed demons, teams of chartered accountants and lawyers who now claim they had no idea of the risks involved when they stood in LINES at the BUY. "We had no idea that putting pension money into crack cocaine was risky, really! The banksters said we could make a lot of money, so we leveraged the pensions 10 to 1 in OTCD bond mkt paper with no market. It seemed reasonable, and our performance bonuses on the marked to model pricing was not a factor in our decision making process, really." -Pension Fund Management teams all over the world, 2007-2010.
17. I wonder what the DESTRUCTION of the global bond bull market means for REAL ESTATE? The "bargain hunters" here in Canada that loaded up on US real estate could soon watch not only their US deals go into the DUSTBIN but their primary residences here in Canada go into a PRICE INFERNO following America. Ironically, it could be a great time to buy real estate with huge leverage, using 40 year mortgages now, before rates SOAR. Because the value of MONEY could TANK more than real estate over 40 years, and probably over a lot less time than 40 yrs. The monthly payment could become a JOKE payment for those who own GOLD, a joke as the Gman attacks his toilet paper money to manage his unmanageable debt. Canadian real estate could "impossibly" play catch-up with American real estate. On the DOWNSIDE.
18. IT'S NOT THE TACTIC OF BUYING REAL ESTATE ON A CREDIT CARD THAT WAS A MISTAKE.
19. IT WAS TIMING. NOW IS THE TIME TO DO IT! EXCEPT DON'T USE A CREDIT CARD. USE A 40 YEAR FIXED RATED MORTAGE NOT A 20% INTEREST CREDIT CARD!
20. If gold holds this pricing in the 1360 area by the 930am US stock markets open, those of you holding the ETF type instruments could hear, instead of kachingos, a huge gold KACHINGO GONG.
21. The futures markets are open now, setting off kachingos for those who have the size and access to play those markets. But the stock market sell orders on the way up to the equivalent of gold 1360 for the gold funds can't be triggered for the most part til 930am New York time. If we hold these levels, it could be a very loud kachingo for some of you as a rack of orders get triggered at the same price point! Regardless...
22. DO NOT TOUCH YOUR CORE ON THE SELL SIDE AND DO NOT RELOAD YOUR PGEN GUNS WITH POSITIONS THAT HAVE NOT BEEN SOLD. BE CAREFUL ABOUT CELEBRATING GOLD'S MOVE HERE, BE CAREFUL ABOUT DIVERSIFYING INTO A MOUNTAIN OF GOLD ITEMS, ALL IN THE SAME BASE 1315-1387 BASE PRICE RANGE. ARE 20 DIFFERENT COLOURED BOATS ALL IN A LINE AT THE EDGE OF NIAGARA FALLS ANY SAFER THAN 20 BOATS OF ONE COLOUR IN A SINGLE LINE BACK UP THE RIVER? NO. THEY ARE IN VASTLY MORE DANGER. DIVERSIFY OVER PRICE, NOT A MASS OF GOLD MKT ITEMS...
23. IF YOU WANT TO BE A PRO.
24. I
hope you have given thought to my $1400
"Entrance of
Elmer Fudd" I absolutely believe that marker is his
"Gateway of Destiny". There is no way that he,
nor his equally moronic golf ball advisors, can resist chasing price
if gold goes over 1400. It IS destiny and it is the
beginning of volatility that is going to likely put your pgens into
buy and sell volume that
seems "surreal" right now. Price may move a lot
higher, or it may move only a bit higher before a larger correction
occurs. I would put either scenario at about 50% odds, and
I would put the odds off a
massive increase in gold price volatility at...90%.
25. How will the gold bull END? A very strong argument can be made that the best investment approach is to move back and forth between the two markets with the longest trends; gold and govt bonds. [This would presumably be years from now. -FNC] When this bull ends, govt bonds are likely to be in a state like "Dow 6500"; the gold community, the fund community, and the mainstream community will all be in liquidation and shorting mode. People like Sad Sack will be at the top of their price chasing game, piling on shorts because they will know the bond is finished. THEY will be finished. NOT the bond.
26. As for gold itself: Picture a giant version of the past 6 weeks. Gold shooting higher, and then a mass "revelation" that price must be chased, and an even greater revelation that rising gold is "here to stay". What happens is that price momentum starts to fade. There's some gold-negative news, but not much price dip. Gold investors don't sell, but get a little confused, although talk about the next big leg up is in the background constantly.
27. Then certain statements from numerous central banks begin to proliferate more regularly, getting the attention of institutions, statements that indicate the banks are "satisfied" with gold at then-current levels. The stock market is screaming higher like there is no tomorrow while bullion is trading sideways, and bonds are grinding lower and lower. Fudd has been decimated and is forced to watch the govt make speech after speech about "austerity", while his paper money goes down and down and down. The govt is talking about a "new reality" of how lower house prices could actually be beneficial to the economy, since people can afford less.
28. Over time, the gold community gets frustrated, as gold grinds sideways, rallying strongly from all dips, and making tiny new highs, but not going into any new leg higher. This bull market likely ends exactly as the 1930s bull ended, except with a free-trading gold price. Gold just stops trending higher and starts trending sideways. For YEARS. The T-bond begins to rise, as does the USD. The gold community gets split between gold shooting higher and tanking, but what happens is that all are wrong, and gold just sits there, year after year. Death of a thousand boredoms is how it ends. The range gets adjusted slightly from time to time, as govts issue less or more debt. The PGEN rules the gold market.
29. The OTCD crisis is likely to have ended years before it is recognized as having been ended. Gold ends the crisis and then goes quiet.
30. Gold stocks may continue to do well for a very long time after gold stops rising. Most gold company presidents don't really understand the role of gold as it is used by the banksters as a financial system control mechanism. Ironically, they don't understand the most important use of their own product. Likewise, I don't think they understand the high probability that their companies have of becoming stocks like UTILITIES. The price is "fixed high". So what do you do with all the cash? You pay it out in a dividend. A very high dividend.
31. Gold is untradeable now, by anything but the PGEN. The banksters must be laughing their heads off as they watch the regulators come after the algo traders. The algo traders are the funds, not the banksters. Look at the volume in the gold futures market yesterday. I posted a gold market update on the site this morning. That massive volume is fundster capitulation. Loss booking. Unless we begin a sustained decline under 1320, we are not going to see the general gold community liquidating in size, and in fact a move over $1400 is going to set off a round of "see how smart I am to have chased price, I'm the big winner!" chest puffing contest, while you focus on the GAINS on what you already bought into weakness. Leave them to run after the price before it gets away. You want SEPARATION between the price you paid and the price gold IS. Think about the tactics required to get that maximum separation.
32. My suggestion: Erase the prices on the side of the chart. Focus on the gold river. Is it flowing higher? Sell trading positions. Hold core positions. Is it flowing lower? Buy trading positions and buy core positions.
33. How did "Grid Time" pay off for you yesterday? Can I make a tiny suggestion before we go our separate ways this morning? OK, Thanks. My suggestion is:
34. Let's do it again today!
Thanks!
S "The Golden Grid Stalker" T
Thank-you