1 Please ask yourself if you are caught in a time
warp, or whether reality continues to unfold, with new and more powerful
phases of this all-epic OTC derivatives crisis.
2. The “2008
again” crew really needs to sit this one out. I told you of juniors expert “GoldLion”.
His view is that juniors are likely 3-6 months behind the seniors, in terms
of being set free from the gold stocks gulag. I’ll add that asking a 20
cent juniors stock to surge to $20 a share while gold surges from $250 to
$1800 is perhaps realistic during an economic super-boom, featuring the
public lined up down the street, buying in a greed-fuelled mania.
3. I’m
not sure how reality-based such an idea is, during a crisis that has seen
probably seen more than $300 trillion in failed OTC derivatives marked to
model, allowing a totally bankrupt financial system to be kept open, for now.
Just when gold juniors investors thought that no new feelings of time and
price pain inside the gold stocks gulag was humanly possible… those
feelings of horror are here now.
4. Some gold seniors stock
“prisoners” have been freed from the gold stocks gulag by the gold
bullion punisher. As far as the juniors go, you get to sit there, tied to
your chair, and take a few more beatings. This is where the survivors, who
will become ultimate victors in the great gold war, get separated from the
bust outs. This crisis is so big that it requires to you to live through
“pain beyond pain”.
5. Only an imbecile tries
to trade their way through the gulag. Some of you have been real prisoners of
real war. You know that anyone who claims it was party time during their imprisonment, is a certified liar. Likewise, those
claiming they can flip trade you through the gold juniors
gulag are fibbers at best. There are no solutions. There is only endurance of
the strong, and destruction of the weak.
6. You can eat more pain,
and you will, if you really want out of this gulag. There can be no
limit to either the amount of time you spend underwater, or the amount of
drawdown you have to endure. When the sand in the hourglass drains out, you
turn it over, and endure another round of pain. That’s your only
solution.
7. I’ve talked about
carrying an “up to 30%” short position in various markets, or
using put options, to build wealth, but mostly to maintain emotional sanity
in this crisis. Monday, September 12, 2011 may have marked another capitulation
day. I was bombarded by emails about investors in pain. It felt somewhat like
the lows near $1478, but condensed in time. As the crisis moves forwards, I
expect timeframes of swings from greed to fear to greatly shorten.
8. Find little things to do
that allow you to endure time and price movement inside the gulag. Some of
them are just little mental games. Whatever it takes to endure, do it.
9. The fact is that some
seniors stocks have been released from the gulag, and that is a hugely
positive event for juniors shareholders.
That’s not a small issue. It’s enormous. It puts some
light at the end of your tunnel. When you see a fellow prisoner released,
there is real hope that you too could be freed. GDX just hit an all-time high
days ago.
10. “If only I had done this, if only I had
done that, I’d be so much further ahead now”. Yes,
let’s talk about “now”. Click here
now to view the monthly meditation chart for GDX. When you meditate, you
can’t have thoughts in your mind. So, annotations are useless
when it comes time to meditate on a chart. Just look at that chart. GDX has
risen about tenfold since the
great dollar bear market began. Meditate, and then ask yourself,
realistically, if you called all those small rises and falls, on the road
from $6.46 to $66.
11. Yes, if you bought large
amounts of stocks at each low point, and sold large amounts of stock at each
high point you would have been “the champ”, and certainly “much further ahead than where you are now”.
The theory is that recent highs at $66.98 “should have been sold”, as one of those high points, and of
course the coming low point must be bought in size, to keep you “ahead
of where you are now”.
12. I’m not so sure
there’s actually anything wrong with “where you are now”,
other than your obsession with it. Look at that monthly chart of GDX and tell me how important to you
those past rises and falls in the price of GDX are now. We both know
you couldn’t care less about the past action on that chart. If
that’s the case, and it is, then what makes the current price action different?
Why is the current movement on the price chart so much more important
than all those dozens of past movements?
13. Gold and gold stocks
gyrate. If you have no short positions in play, you book no profits when
price declines. When price falls, all you think about is how much you are
losing on your long positions, and how much of your position you should have
sold at the latest minor top, to have avoided being “where you are
now”. You understand the rewards of flip trading, but do you really
understand the risk side of the equation? In this crisis, flip trading could put
you on a real breadline, alongside Elmer Fudd
Public Investor.
14. To view my GDX profits
momentum chart, click
here now. The bottom line is that GDX is chain sawing its way through the
dollar bugs at the rate of 100% per year, based on the action out of the June
lows. I expect that rate to accelerate substantially in the coming years. The
only people taking the stock you throw in the garbage can now,
are the banksters. Where do you think it is going?
Do you think Elmer Fudd Public Investor is buying a
share? No. He can barely pay the mortgage on his underwater home and
he’s waiting for the government to save him from himself. That will not
be happening.
15. Still,
you can’t expect something like GDX to rise 30% in 3 months without a
pause in the action at some point. Maybe that point is now, or maybe it
doesn’t really come until near $80 on the GDX. Are you going to learn
the answer… the hard way? $1478 was a point of massive capitulation in
the gold community. I got a zillion letters describing all the reasons why
the dollar would rally and gold stocks would fall. My question is, how did it work out for those of you that acted on what
boils down to nothing but your own fear? Let’s
make sure that $1478 is the last zone of capitulation for every single member
of the gold community, for the rest of this bull market.
16. The reality is that
those feeling the most fear now, bought the least or sold the most into the
lows of $1478.
17. The Sheriff.
There’s a new sheriff in town, and his name is Mr. Unleveraged Physical
Gold. This period in time can’t be 2008 again because the physical gold
players are beginning to act aggressively.
18. One of the themes I
predicted for 2011 was “gold
community aggression”. For a long time, the gold community was on
the defensive, when it came to debates against the dollar bugs. I told you
that would end, whether you wanted it to end or not.
19. You don’t need to
explain the merits of your gold bullion holdings to the dollar bugs. Stop
wasting your precious time acting like a worm. It is the pathetic dollar bugs
that need to explain to you the merits of their garbage paper money system,
which has a track record of every single issue having gone off the trading
board, for all of time. Don’t defend yourself against any dollar bug,
ever again. You are almost insulting your own gold by doing so.
20. I bring you real
characters in the gold market, and hide their identities. Richie Rich is one
new character I’ve just introduced to some of you, and for those who
don’t know, Richie is holding a million ounces of physical silver and
30,000 ounces of physical gold bullion. He’s becoming aggressive.
He’s eating pain alongside you during times like this, but
there’s a new level of confidence and aggression, and he’s not alone. The dollar bugs are best to stand down
now, because the physical players of size are slowly taking control of
the gold market, and beginning to show tremendous disdain for the leveraged
players. Team monster physical is beginning to feel their
own power. It’s a veritable fire hose blast of golden adrenaline
surging through their veins!
21. Understand that this is
a fight, but at this stage in the crisis it’s not about guessing the
next direction for gold, or what you could have made by selling big at the
latest minor or intermediate high. That action worked in the earlier stages
of the crisis, and many of you would not be here now, at all, if you had not
employed it then. There is a time for very aggressive trading. That
time is not now. Now it is time for Babe Ruth to step forwards and everyone
else on the gold team to stand down.
22. The
greatest traders know it is time to sit on the bench, now. That understanding
is part of what makes them great. The worst ones believe it is time to trade
more aggressively. If you are ready to take on Babe Ruth in a home run
hitting contest, please step forwards into the gold market. If you are a
professional bunter, I’m afraid you might be destined for the financial
gas chamber if you don’t know it’s time to get off the field and
onto the bench. The big boys are in the house, and the question is, are you onside?
23. Click here
now to view the head and shoulders chart pattern update for GDXJ. Note
the right shoulder that initially formed, highlighted by the blue circle.
Price rallied, but then declined into a bigger right shoulder creating a
better picture of symmetry, to match the action of the left shoulder.
24. You can’t know if
that pattern fails or activates, and in the biggest picture it just
doesn’t matter, so long as you are prepared to buy or hold your
positions if it fails. Click here
now to view the gold bullion picture of simplicity and logic. Look at
that it every day, not some theory as to why you are a wiener for investing
in gold. Gold is simply trading in a box between
$1700-$1900, with a 2/3 chance of breaking out upside, and a 1/3
chance of going on sale for you down towards $1500. There is no fear, and
there is no 2008 again. There is only you, marching
forwards against the dollar bugs. The only difference between now and 2008 is
that now you have huge physical players marching alongside you! Now,
let’s get out there on the gridlines, and deliver the whipping to the
dollar bugs, that we came here to deliver!
Special Offer For Website Readers: Send me an email to freereports4@gracelandupdates.com
and I’ll rush you my free “oil juniors players, report for duty!”
report. I’ll walk you through the reasons why oil juniors are poised to
skyrocket alongside, or even before, the gold juniors!
Thanks!
Cheers
Stewart Thomson
Graceland Updates
Email: stewart@gracelandupdates.com
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