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stewart@gracelandupdates.com

stewart@gracelandjuniors.com

Nov 10, 2010

1. "What happened yesterday in the gold market?"- 99% of the gold community, Nov 9, 2010.

2. Answer: Graceland Subscribers bought gold into the lows. That's what happened yesterday in the gold market, or at least, should have happened.

3. Sad Sack shorted silver at almost the tick low yesterday. Silver is only $1.50 up from yesterday's low as I write this morning. $7500 a contract into the dustbin for Sack. Even if silver takes out yesterday's low, he's already out at a loss.

4. MORE VOLATILITY CALLS FOR LESS EFFORT TO PREDICT WHERE THE MARKET IS GOING AND MORE EFFORT TO RESPOND TO WEAKNESS AND STRENGTH PROFESSIONALLY. THE HIGH SPEED TRADERS AND FUDD ARE IRONICALLY DOING THE OPPOSITE, TRYING TO PREDICT WHAT GOLD IS GOING TO DO NEXT. WRONG.

5. What is happening in the gold and bond market right now? There may be a debate going on within the bankster families. The more evil of the group suggesting a "Lehman 2" type situation with actual failures of banks and closures of the stock markets. Luckily, the worst of the banksters are the minority.

6. I posted a "visit" to gold neighbour Jim Sinclair's website this morning on my site. He has two interesting scenarios laid out. The first one sees gold rising to $1650 in 8 weeks as the Fed continues course on QE. The 2nd sees gold failing to rise to $1650 in 8 weeks, but then surging to $5000 by June.

7. The scenario all sane people want to see is the banksters, through their central bank managers, continue the continued modest gold revaluation, which basically creates a move LIKE going to $5000 bullion, but the move of size is for GOLD STOCKS, not bullion itself. The scenario all insane people want to see is bullion at $5000 in a hurry, which sees who have engaged in murder hold that gold and everyone else stands in a breadline or huddles in a cave. The horror of the situation could dwarf the breadlines of 1929.

8. Elmer Fudd Public Investor isn't listening to anything like the above "poppycock". He's so smart. He was on the phone to Jim Sinclair into $1420 yesterday informing Jim that gold is a "here to stay asset that should be bought right now". So nice to see the world's stupidest market losers helping out Jim in the gold market before he goes bankrupt. Where would he be without the world's greatest price chasers leading him forwards in the markets? Possible Answer: Exactly where he is now? Later, at $20 a bushel wheat, Fudd and his merry band of price chasers could be on the phone to Jim Rogers informing him of the "quality of the agricultural assets". Fudd, nor his golf ball advisors, had any clue how gold functions as the cornerstone of the financial system, had no clue what an OTC Derivative was, had no clue what QE was, had no clue about the real estate or stock market bubbles, had no clue of any of the time-tested tools used by the central bank, yet now they are GOLD EXPERTS. Actually, at $20 wheat, Fudd is going to find the world doesn't look "exactly" like it does now, and the very last thought on his mind is going to be what market play to engage in. Fudd should take a hard look in the financial mirror. The next phase of the crisis could see that mirror, and himself, financially, break into smithereens.

9. Natural Gas rose yesterday while the other markets were getting smoked, and it is flirting with one-month highs this morning. Those of you who overdid it with Gas and attempted to call a bottom rather than accumulate an asset should use this strength to either add some shorts or lighten up slightly on longs. You don't have to own every single cent of the natural gas price grid with borrowed money to do a decent job of accumulating the asset. As McDonald's, a fairly successful company, says, "you deserve a break today".

10. Use a series of range pgens to make it a more fun experience rather than just an unending foundational pgen. The good news is that those of you who survive the natgas accumulation will find you can survive ANTHING that ANY market throws at you in the future. The strong survive. The price chasers get exterminated. The LAW of the markets.

11. I want to remind everyone of my statement that the biggest theme of the gold market now, even bigger than price ascent, is price volatility. The big technical factor is the loss of the "tethering" between gold's current price and the neckline of the h&s bull continuation pattern around $1033.

12. The top technical analysts are killing themselves to decide whether gold's overbought condition means a big correction is coming or a little one. Earth to technicians on Mars: Your recent prediction failures are only going to get WORSE, not better. Gold may not correct at all and instead blast higher, hundreds of dollars higher.

13. I was an aggressive buyer of gold stock yesterday. Most of you would be stunned if you knew how tightly I'm buying gold stock as it declines. I posted a mini video on some of that this morning using uranium. It's called "Mastering The Grid". The key in the gold market right now is to maintain solid gold positions but also solid cash levels. Gold and cash are twins right now. In a volatile market you need high cash levels to respond to reality. Markets are about survival first, analysis second.

14. Most gold analysts are saying either "be all in on gold" or "trade light". Both are wrong. Gold in my view has a 50-50 probability of exploding hundreds of dollars higher or selling off violently. Does it sound smart to pretend to know which scenario is going to occur, or smart to be 100% prepared to RESPOND to either?

15. If gold fails between now and January, my strongest suggestion is that you revisit the bank system collapse scenario. You're going to have to start withdrawing cash again. I'm already starting. I don't think the wipeout scenario plays out, but the end is UNKNOWN.

16. Don't fall into the bankster trap that 99% of the gold community has already fallen into, cheering the head WORLD bank's statement about bringing gold back into the money system. That's the GAME the banksters have played for hundreds of years and arguably thousands of years. Gold is the control mechanism they use to enrich themselves and impoverish everyone else. They strengthen and weaken paper money by increasing or decreasing the amt of gold backing all the toilet paper.

17. They buy the gold and hold their wealth in commodity-based assets at low prices, buying a chunk, almost for free, from the taxpayers, then sell it back to the wieners at high prices. The time for IMPLEMENTING a gold standard is when debt is LOW, when paper money is STRONG. When implemented as a knee-jerk FEAR of failing paper money and high debt, it is nothing more than a bankster-enrichment game that LOCKS the taxpayers to the desired level of poverty mandated by the banksters. Like an ant being locked in a jar by a golden scumbag. No thanks.

18. I'm starting a new bullion range pgen today, buying gold every 3 dollars down. The last one I ran, just days ago, saw ALL the buys unloaded at profits at 5 times the buy increment. Remember that buying weakness is about buying by the amount of the buy increment, not guessing about "how deep the correction runs".

19. When you get into a situation like we are in now, what tends to happen is "bargain hunters" show up. If Jesse Livermore ran more of a PGEN than a PLUNGER he would likely have been a lot happier. As price goes down day after day, the bargain ploppers run out of capital and that is where the "out of the hole" moves tend to occur.

20. One of you mentioned the tightening of buy increments once a move appears to be exhausting on the downside. Let's say you are buying gold every $10 down in approx. $5,000 increments to start, and growing size from there. After a few drops of $10, you may want to consider buying in $5 increments AS THE ODDS OF A TURN APPEAR TO BE GROWING. You are not allocating more total money to the pgen, just trying to be sure you get MORE FILLS at the lowest prices.

21. Question: Which Mr. Fudd and Mr. Fundster paid the highest price for gold yesterday? $1424 was the high point area. SOMEBODY bought what you sold. Hopefully it is nobody reading this sentence... The Graceland goal is not just to sell high, but to dominate the VOLUME at those high points. Who bought the most gold into 1382 on the downside yesterday?

22. Once again, it was the banksters who sold the most into 1424 and bought the most into 1382. Still, the trend is our friend, and the VOLUME of the Graceland trading is GROWING. It's built one trade at a time. "Bye bye banksters" might be 50 years early. Still, it's coming...

23. Yes, that GRID word seems to be very dominant in my writing this morning. As it should be! Let's do it! See you there!

Thanks!

Cheers!

st

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Written between 4am-7am. 5-6 issues per week. Emailed at aprox 9am daily.