 Gold: The Hour Of Power
Stewart Thomson
email: s2p3t4@sympatico.ca
Oct 7, 2009
1. What a golden day yesterday
was. Here's a quick blow of my own horn and then on to the serious
analysis:
"Just a quick note on
my Kaching today! You've helped me become successful after 40
years of trading! -Subscriber DB. Oct 6, 2009
"Yo Stewart, Just a quick
update. I'm currently +33% on my account with another [roughly]
+20% worth of open profit. Your pyramid idea works like charm.
Mad props. Should you come to Czech Republic, I'll throw you
a party." -Subscriber M. Oct 6, 2009
2. George Soros calls the US
banking system, "Basically Bankrupt." He says, "The
United States has a long way to go." The good news is
the public has built a special George Soros language translation
machine. Their machine translates "basically bankrupt"
into "Buy anything the insiders liquidate, pay any price,
and do it now!"
3. "A long way to go"
is translated by the public to: "The recovery will take
2 more weeks, but widows and orphans should wait
3 weeks before investing all their money in stocks. Gold is going
to zero, sell it all on the next hundred dollar decline."
4. High oil prices are now
deemed great news for the stock market. $70 oil was deemed a
disaster for the stock market just 2 years ago. Now we're to
believe it is "fantastic news." All that is left for
George Orwell Financial Markets now is to mandate mark
to model accounting. After your stocks drop 90%, your statement
will show a 100% gain. Of course, there will be the minor detail
that you can't take out that money, and the banks will use it,
for loans to themselves.
5. "And today, marked
to model, the Dow soared 50%, and home prices were marked up
40%. Nobody has any food, suicides are pouring in by the hour,
but those small problems aside, the recovery continues to beat
expectations!" -Bloomberg News, 2012
6. A bull market takes no bear
prisoners. The banksters are long gold. Not short. I've been
saying this for years and few have listened. They use the COMEX
to book profit against their physical gold and to take your gold.
It is some of you in the gold community who are naked short gold,
not the banksters. This is madness. There's nothing wrong with
shorting gold, as long as it is against a much larger long position.
I sell 2-5% of my gold into $50 to $100 of gold price strength.
Not 5000% of my gold, like many in the gold community have done,
hoping to "get in cheaper" later. The gold head and
shoulders pattern has already broken out upside on the monthly
chart. You've been told.
"As always the Goldmans
of the world will end up the biggest winners long gold. You can
bet on that."
-Jim Sinclair, Oct 5, 2009.
7. Jim Willie has shown
"respect" for the massive head and shoulders continuation
pattern on gold. So have a few other writers, with the emphasis
on "Few." It will be the Few that make large money
on this move in gold.
8. Gold stocks have not come
back like bullion has. They will. As gold approaches $1200 the
urge to buy gold will become nearly irresistible and I'll have
booked a boatload of profits all the way there. Gold bullion
will have many more multi-hundred dollar corrections. But there
is almost a "demand" that gold have such a correction
now. I want you all to make money. That means a focus on the
basics. The most basic thing you can do in the market is
respond to price. Let me repeat that: Respond to price. By responding
to price, ironically, you are predicting it most accurately.
9. Don't try to outsmart the
banksters. You will fail. There's a reason why they are trillionaires,
while most GCMs (gold community members) will barely break even
on their gold stock portfolios even if gold hits $1200 on this
move! I'm being swamped with two polar opposite types of emails.
The first group is saying, "I'm short gold. The stock market
should fall soon and gold should fall, right?" The 2nd group
says, "I've recovered a lot of what I lost in gold stocks
into last fall's crash, I should probably buy more now, right?"
10. Regardless of what the
market does, both types of thinking are 100% wrong. The amount
of capital you apply to your bets is critically important. You
can likely salvage a short side bet on gold, provided you have
a plan of action in place to add short positions at least to
gold $1200. If you are following some broker or writer who is
telling you to short gold with a tight stop, with a bunch of
futures contracts in a tiny account, I'm sorry, but you are likely
going to lose ALL your money. Picture a football field, with
each 10 yard line marking off a $50 or $100 move in the gold
price. That is the Gold Market. Think big, not small, or the
banksters will make you small. You have to accept smaller wins
and place smaller bets if you are going to succeed in the gold
market. For those of you playing the long side, you also have
to think big but act smaller in your trades.
11. The public wanted out of
the stock market. They were terrified in March, and still are
nervous, but not afraid. The market memory of the average investor
is easily erased by price action. It's simply a matter of
degree. Do you seriously believe that if the Dow shot several
thousand points higher next week, the public would still want
out? No. They would want IN. Most investors are "price slaves."
Their so-called plan of action to lighten up on stock market
holdings if the Dow rallies higher is currently being replaced
with, "well, maybe things are a little better, I'll just
hold on a bit longer." Another leg up on the Dow will see
ten thousand excuses why they didn't buy at Dow 6500, and twenty
thousand more reasons why "it just makes sense to buy now."
12. I want to give you a clear
picture as to why the volatility in the gold market is about
to grow incredibly. In the late 1990s, the banksters convinced
the public that the stock market was "here to stay."
Most of you were conned by the banksters. Those of you that weren't
conned on the long side, probably lost money trying to short
the Dow from 1995 in a series of failed price plops.
13. What is happening now is
a similar situation to what the bankers did with the Dow, but
with the US dollar, the world's largest market. This is their
showcase play. Gold is the world's smallest major market. The
bankers, who are massively long gold, are creating a situation
where the public is being indoctrinated in the view that the
US dollar is finished, a very similar view to the view the banksters
created with their "here to stay" stock market of the
1990s. Most importantly, that view is now being pushed on, and
accepted by, institutional money. It is being accepted because
the banksters are really damaging the dollar fundamentally with
their money printing games.
14. The key point is that the
US dollar bear market is now entering the stage of a publicly
recognized and PROMOTED bear market. As of right NOW, you will
start to hear from business owner investor acquaintances about
the US dollar bear market. These idiots will parrot the Bloomberg
stories, nodding their heads up and down, completely ignoring
the fact that the dollar is down about 35% from the highs set
about 7 yrs ago. NOW they show up and notice there's a problem
with the US dollar? We are in the later, most horrific
stage of the US dollar bear market. The stage where the banksters
begin buying USD with their infinitely deep pockets, while the
institutions and public bail in terror and accelerate their doomed-to-fail
leveraged carry trade scheme. Soon the banksters will be selling
OTC derivatives on the US buck shorts, collecting, fees and interest
before finally burning the thing into the ground via a new gold
standard that will end the US dollar short party like a tomato
hitting a cement wall.
15. It's very important to
stay focused on what the charts are indicating and buying gold
weakness and selling gold strength only. This is the largest
bankster play ever, as they load up on the US dollars sold by
the bustout dollar bag holders worldwide who follow the bankster
propaganda that the USD is "finished for the long term."
16. We even have the head of
the World Bank calling the USD a sell now, 7 years after the
top. Then he says, "by the way, I've bankrupted the entire
world bank, but I know the US Dollar is now in a bear market,
7 years after the top." Gee, I wonder why his bank is worthless.
He says what he's paid to say to create WORLDWIDE panic and hysteria
concerning the USD. The banksters are ready for the next stage
of profit booking on their giant gold long positions as part
of their plan to take over the major holdings of the US dollar.
17. They are looking to create
fear in the US dollar market, and succeeding tremendously in
terms of time and in terms of volume of fear. All it takes is
for a tiny portion of the US dollars to make their way towards
the gold market, a tiny portion of allocation by the institutions,
and you have immediate mindblowing volatility in the gold market.
There are hundreds of institutional traders handling vastly more
money than that held by all the GCMs. If you are shorting
gold, you must be prepared to handle price moves of $100, even
$200 during a single day's trading.
18. My strongest suggestion
if you ARE short gold, is that you move towards trades
drastically smaller than you are trading now. Few investors
alive today understand what is coming in the gold market. The
gold community has called almost every single top and bottom
wrong. There's one thing not a single person in the gold community
has called wrong: The Big Picture. That makes you smarter in
many ways that 99% of the world's largest money managers. Take
your credit. It is due.
19. Once the banksters have
pointed terrified institutions towards gold, they will then seek
to alternate bullish and bearish news to create massive whipsaw
action. The banksters' "grand slam" will be announcing
that the "recovery" was in fact a warm-up act for their
Trillion Dollar OTCD Main Act. "OTCD" being Over-The-Counter
Derivatives. Once the economy is announced to be imploding via
a truckload of new multi trillion dollar OTCD failures, the US
Dollar bear market will not reverse. It will accelerate at hyperspeed.
Gold's rise will create terror amongst institutional investors
that financial Armageddon is upon them. They understand full
well what happens to gold if they all charge in at the same time.
Many will turn to gold stocks to appear less panicked than they
are.
20. There will be no "gold
rush" for the public. They will be too busy screaming for
President Obama to print more money to save them from the financial
black hole they are in. In the meantime, it is more important
that you continue to watch the charts for REAL overbought and
oversold conditions. Don't tell yourself excuses to buy or sell
gold when the clear picture on the charts is not what you are
pretending it is, what you want it to be.
21. I've heard a million reasons
from many investors WHY gold will go up or down for the next
leg. Who cares. Place your buys and sells in response to whether
it IS up or down. All else will fail you.
22. Looking at the seasonal
chart for gold courtesy of 321gold via Moore Research at www.mrci.com
you can see what has transpired in the past September to October
period, on average, over the past 34 years; a huge September
rally followed by decline in October that retraces about half
that rally. Look closely and you will see the average October
decline began around the end of the first week in October. Today
is October the 7th.
23. While the money I would
personally bet that gold will decline from here is zero, I have
been a seller into this strength to book profit, not to call
a top. I certainly would not want to bet money that gold will
rise in October. Remember 905? Remember when I was alone amongst
the gold writers screaming "Buy"? I do. I remember
how hard that was. Making Money is hard. Those signing up now
for their free October gold market money in a price-chasing frenzy,
well, this is like making work strategies on Friday night fuelled
by alcohol. Anyone can buy gold now. On Monday morning at 4am
when it's tanking, the price chasers are all hungover, too sick
to buy. I don't forget what it takes to make money in gold and
I hate losing money.
24. Here's a look at the 60
minute chart for the gold stocks ETF, the GDX-n, as of yesterday's
4pm closing. The indicators are all asking you to show some patience,
for a few days, before buying gold.
25. I use the 60 minute chart
to help technical traders time the entry and exit of positions,
not to decide whether to buy or sell. I focus there on RSI, Williams,
and shorter time frame Stochastics series. The Williams tends
to oscillate between overbought and oversold over an approx
1 week cycle. It is the main tool I use to instruct technical
traders to gain PATIENCE. You only need to wait for 1 to 3 days
on average, for the indicator to move from overbought to oversold.
Are You Prepared?
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Oct 7, 2009
Stewart Thomson
Graceland Updates
website: www.gracelandupdates.com
email for questions: s2p3t4@sympatico.ca
email to request the free reports: freereport1@bell.net
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