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Get with the program, the gold program

Stewart Thomson
email: stewart@gracelandupdates.com
email: stewart@gracelandjuniors.com

July 5, 2011

  1. If you are a gold market investor, click this link now to view the world’s most important gold market chart.

  2. You are correct, if you think that is a rice chart. What happens to the price of food is going to affect the gold price in a very big way.

  3. Gold is the main thermometer of the world’s financial health. When the price of gold rises, the gold thermometer is telling you that something is wrong with the financial health of the world.

  4. The price of food must rise to give financial incentive to farmers to produce more food, yet that same rise in price threatens to cause rioting amongst Asian consumers who can’t afford to pay much more than they are paying now for their food.

  5. Some sources put the number of suicides amongst Asian farmers at over 200,000 over the past decade. Click this link now to view one viewpoint on the situation.

  6. Rice has been gapping higher for the past few trading sessions. If it moves a bit higher from here, it will negate the sloppy head and shoulders top technical formation on the daily chart. At that point, rice could begin to surge.

  7. In turn, that means more problems for Asian food consumers. Do you think that horror will be reflected in the gold price? You better believe it will be.

  8. Click this weekly rice chart link now to view the massive head and shoulder bottoming formation, one that totally overwhelms the daily chart topping action.

  9. If you recently jettisoned your gold and gold stocks because of the red circles on this gold chart, you have probably made one of the greatest investment errors in the history of the world, and arguably the greatest investment error of all time. If you jettisoned your gold because of “seasonals”, or for “a sure thing US dollar rally”, you may soon learn just how high the MACD indicator can really go while giving technical timers one failed sell signal after another.

  10. That process could go on for years, and the only question is, are you onside? Look closely at the 12,26,9 series on that monthly gold chart. Do you see the level that it is at? It is trading at about 140. I expect to see that monthly chart MACD for gold go to stratospheric higher levels that you can’t even imagine right now, and stay there, for many, many years.

  11. MACD does not rule liquidity flows. Liquidity flows rule gold’s price. Most gold market technicians playing with their oscillator and indicator sell signals need a major lesson in understanding what creates charts.

  12. What the crazed gold top callers need to understand is that MACD is not an oscillator like RSI is. Oscillators like RSI trade in a fixed range, like between 0-100.

  13. There is no fixed range for MACD. The MACD on the Dow went to about 1000 in the 1990s bull market, while amateur technicians killed themselves financially by top calling that market. Their coveted MACD indicator issued one “sell signal” after another, and each signal failed. The market finally turned down, ironically, as their indicator started to go to a buy signal. What a horror.

  14. As for the much-vaunted RSI trading “overbought over 70, sell everything now!” madness, you need to understand that RSI can go above 70 on the monthly charts in any major asset, stay there for many years, and do so… while price absolutely skyrockets!

  15. You need to look at central bank liquidity flows, not MACD or RSI. Put a lid on the technical analysis and get focused on liquidity flows. In 2010 central banks began to buy gold rather than sell gold, as a group. If you think that is because of some “epiphany of understanding the nature of gold”, you are free to believe so, but the reality is that central banks are buying gold to devalue the dollar, and all paper money.  These buy programs have only just started, and they are not going away.

  16. The decision is yours. Get with the program, the gold program. Or, hang out at the US dollar photocopier, alongside the MACD and RSI-obsessed clowns. This gold bull market will turn the top calling technicians into beached whales. I don’t think you are going to like what happens as the price of food begins to skyrocket, especially if you are on team photocopier now.

  17. In this crisis, I view the market action of moving from gold to paper currency “because gold might fall down” as akin to sucking on a baby bottle. In this crisis, babies build dollars of wealth issued to them by Daddy Bankster and Mommy Gman. Grown-ups build ounces of wealth. Which are you?

  18. Don’t be a bankster mark, and hand them your gold because of seasonals or technical analysis.  You should be buying gold and gold-related items now, not selling. You have been hoodwinked by technical analysis. Charts serve a purpose, but they don’t build wealth by themselves.

  19. A reading of 125-150 for MACD on the monthly gold chart is not high, given the magnitude of the OTC derivatives and unfunded liabilities twin debts crisis. MACD in this range is not even high compared to other massive bull markets in other assets.

  20. The bottom line: show me a chart, and I’ll show you a bankster with a paintbrush.

  21. Bob Moriarty thinks the crisis “ends” with either the US gov’t becoming a full-fledged dictatorship, or a revolution occurs. Maybe you get treated to one, and then the other occurs, too! Nothing has been fixed, and nothing has been solved. A director of the Australian central bank just called the 2008 crisis a “blip” compared to what is coming.

  22. Elmer Fudd Public Investor knows that the director is an idiot and everything is fixed, because his golf ball advisor says so. He knows that Bill Gross is a failed timer because bonds didn’t go down after he sold all of his bonds. Are you sure that Fudd is as smart as he thinks he is?

  23. If 2008 is a “blip” on the crisis performance meter, do you think selling your gold and related items over the past month, because of what is no more than a limited understanding of technical indicators and oscillators… is that action really an intelligent decision, on your end of the crisis ranch?   You got your dollars, but what do you do with them now? Fix your error, or you will be lead character in the burn and learn financial TV show.

  24. I estimate 85% of the gold community sold gold and stock over the past month, at losses. As you think about that “2008 is a blip compared to what is coming” statement, if you sold gold for dollars, you are not in the safety zone. You are in the blast furnace. Prepare to burn. Click this short term gold chart now to view the gold punisher in action this morning against the dollar, powering through a number of short term resistance markers on the road to recapturing $1512. Focus on those light blue HSR (horizontal support and resistance) lines today, and nothing more!

Thankyou
st

Jul 5, 2011
Stewart Thomson
Graceland Updates
website: www.gracelandupdates.com
email for questions: stewart@gracelandupdates.com
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Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualifed investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:

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