Graceland Updates 4am-7am

Email:

Dec 18, 2010

1. I view Trader Dan as the best technician in the gold community. Still, a "man's gotta do what a man's gotta do". What I do is get into the MIND of the various movers of liquidity in the markets. Many see the CCI general commodity index as a possible bubble. I don't.

2. What I see on the chart (click here now to view: CCI Monthly Range Chart Dec 18) is substantial HSR (horizontal support/resistance) at current levels.

3. To be fair, Dan notes that some commodities are bubble like, others not.

4. Ask a farmer if they think their commodities are in a bubble. Many are trading at 1970s prices. They think commodities are in the gutter, not the sky, even after the move up! Look at the costs of fuel, fertilizer, etc. Farmers don't see any bubble.

5. Still, there is no question, because of the HSR and price rise itself, that current prices are a major pgen CCI cash register ringing zone.

6. There is also no question that should price rise above the highs in the 615 area, that HSR turns into support instead of resistance.

7. I don't see the public surging into commodities. What I see is a bond market on fire and a public all in on bonds. A fire that could send the CCI thru 615 like an Apollo Rocket goes thru rice paper at 25,000mph.

8. Gold has risen 5 fold since the lows of $250. The CCI has risen 3 fold. CCI needs to catch up to gold, bigtime, as do gold stocks.

9. Take a look at another commodity index, the CRB Monthly Chart.

10. Does that look like a bubble? It isn't even up 100% from the 1999 area lows, and there is a big block of support in the 250-290 zone.

11. Congrats to Morris Hubbartt from www.superforcesignals.com for stepping up to the gold asset plate, the unwavering "I understand what gold is" plate, yesterday. You can't play technician if you don't understand what gold is, which is the opposite of socialism. Gold is reality. Socialism is garbage. You don't want some cardboard man with no bullion himself, pretending to analyse a chart for you while he secretly prays to the Gman's photocopy machine while beating on the gold sell button on weakness.

12. Go with the flow. The flow is gold aggression in 2011. Either flow with it or be a victim. Morris has made his decision. Have you?

13. A breakout over CCI 615 opens the door to CCI 1000.

14. I consider yesterday to be a significant day, mentally. The negativity on gold reached a sort of crescendo, then price reversed and the bears who bought nothing, and stood there in audience mode while you ruled.

15. For those of you at www.gracelandjuniors.com you have watched the totally maligned flying five member SANGOLD rise a staggering 30% while gold and gold stock have generally slouched sideways. Yesterday it soared 12% on the DAY. GoldLion has stated, "IF they can execute, SanGold has a $9 handle written all over it."

16. Elmer Fudd Instruction Manual. I'm not being sarcastic. If you are Elmer Fudd Public Investor who failed to buy any gold in the bull market, laughed at what gold is in 1999 (that was a horrific, but reversible and understandable error) while backing up your Nortel and Enron asset trucks to your golf ball advisors' giant toilet bowls for a fill up, it is not too late for you if you can look in the mirror, drop the bullion is safety blab that you know is nothing but a price chasing excuse, and focus on gold stock, and more importantly, bonds.

17. Bonds? Yes, focus on sitting still. Remember when your mother or guardian told you to sit still while the adults talk? If you drop the "I need to be invested now" garbage, and WAIT for bonds to collapse, and I'm talking about prices that are VASTLY LOWER than where we are now, you have a solid chance of reversing decades of failed market buying and selling. If not, there is no hope for you, none. You have to change your mindset. That is the bottom line. Try sitting still for TIME. Take what is offered by the market instead of making demands that the market answer to you and your golf ball advisors. You have ultimate patience with your BUSINESS. Try that same patience with the MARKET.

18. Try it. You'll like it.

19. If you are Elmer Fudd, you could probably reverse ALL your lifetime market losses with a serious focus on GLDX, GDX, GDXJ, and ZJG.to. A focus on bullion? Not in a billion years. You can't saunter up to gold at $1400 without understanding what gold IS, what this crisis IS, after badmouthing it at $300, and seriously expect to take on the banksters using the exact same tactics that sent you vertically into the financial GARBAGE CAN in the stock and US real estate mkts. What are you going to do, price chase it to $2000 and then sell it back to the banksters on a $500 (or $1000) hit as they instruct your golf ball advisors that "gold is finished"? There is a HIGH CHANCE that gold stocks could actually keep rising alongside the stock market while the banksters maul bullion and take all yours as you bust out in failure again. The bottom line for Fudd is:Drop what failed before and step up to the gold stocks plate or be destroyed.

20. This is only the starting line of the exponential outperformance coming for gold stock versus gold bullion. I think it could be 500% or 1000% from levels UNDER $2000 an ounce. If institutions start to bid up the stk mkt, who knows what the outperformance numbers could be.

21. Speaking of patience: Here's a look at the MAGESTIC consolidation on Tanzanian Royalty. A Chart Lesson In Consolidation. I hope we drop towards $6 or even wreck "Mr. Majestic" by dropping below the blue demand line so an outer core buy mania gets triggered for me. I doubt it happens.

22. A consolidation doesn't get much more orderly or MAJESTIC than this. My long term targets for the stock are $30 and $100.

23. More good news for you: www.stockcharts.com has decided to include the US ticker for the Dennison Mines Uranium Fund (u.to) that I constantly highlight to you, after my request to do so. The simple fact is that if I can't show you a US-traded instrument, you are less likely to buy it, as a group. Click here now:

24. US Symbol For Uranium. I'll start using the US symbol now in the updates. In turn, I suggest you use the PGEN on it.

Thanks!

Cheers,