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Stewart Thomson

Stewart Thomson

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is…

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Graceland Updates 4am-7am

May 7, 2010

  1. Let's get right to business. Here's the gold juniors chart, via the GDXJ. I've highlighted the key HSR levels in blue. After hitting my "enhanced selling" HSR $29 area, most of you are back in refill mode now. Click here now to view the enhanced buy zones, current and prospective: GDXJ Daily Chart
  2. The one thing nobody wants to talk about, here and now, is...silver. The industrial component of silver made itself apparent yesterday. Weakness must be bought, and the best traders I know prefer buying silver to gold now, in terms of possible intermediate term upside reward. Think about my words very carefully. Silver is a no-time-limit call option on gold. I own silver. Silver is not a replacement for gold. The 1970s were the time of silver. This is the Era of Gold.
  3. Here's a look at the Daily Silver Chart. Key Buy Zones.
  4. Remember that price must fall down on to those blue lines for you to buy, not rise up to them. Most analysts will tell you here and now that "the uptrend line has broken, it's a sell". Here's my message to those analysts: I eat broken uptrend lines for breakfast. All that broken line tells me is I might be lucky enough to see an intermediate decline in price, so I can buy more silver at lower prices. Focus on placing your buy points here and now.
  5. Respond. Respond. Respond.
  6. Respond to Queen Price.
  7. I went to dinner yesterday with the president of a silver company, one that all silver stock investors know. The dinner was $500. I paid. They have almost as much gold as they have silver. I told him, "When gold is locked to the US dollar, silver will not be. Silver will crash. You will need to sell your silver production, not now, but you need to stay on top of this issue and do what needs to be done and sell into strength when it comes bigtime." I believe massive strength in silver is coming. Subscriber "GoldLion", who I believe is the greatest gold juniors stock trader in the world, believes the Dow could rise to 50,000 or 100,000 as the banksters' nuclear-armed currency crisis aircraft carrier... takes aim at the United States Of America.
  8. The Silver Parabola could make the Gold Parabola, which itself stands to boggle the mind, look like a wet noodle. The difference is, 99% of silver investors will lose ALL their money when it ends. There will be no lock of silver to the US dollar, nor of the stock market, nor any other commodity. There will be a lock, alone, of GOLD to the US dollar.
  9. Without that lock, civilization as we know it...could go Quasi-Caveman. Nobody knows at what exact price the lock will occur, but we know that official estimates put the US govt gold supply at ¼ of the levels of the Roosevelt era, when the supply of paper money was drastically lower, so it could be anywhere from $1500 to a number in the many thousands of dollars an ounce. My prediction is $6000, but I wouldn't bet money on my prediction one way or the other.
  10. I believe "the great stk mkt crash" the gold community wants to see in the stock market, WILL happen. But it will probably be from tens of thousands of Dow points higher than where the Dow is today. The question is: Are You Prepared?
  11. This crisis began as an OTC derivatives crisis. Then there was the exchange-traded markets crisis. Now we are moving to the sovereign debt crisis.
  12. Most in the gold community are focused on the private economy, thinking "there is no recovery". Bottom Line: the stock market bears are holding a private economy failed recovery watergun in a fight against a national govt money printing firehose, the quantitative easing firehose, and the paper money devaluation firehouse.
  13. When "Big Jim" Sinclair recently said gold was "days away" from a massive move to the upside, most said "no, it's 2008 again, he's wrong again, gold stocks are gonna crash, sell!". I drew your serious attention to his prediction. The bottom line is you need to get into somebody's mind to know which predictions carry weight and which are unlikely to play out. It's a complex and long process.
  14. The Gold Parabola theme may or may not be underway. What IS underway, is the Gold Volatility Parabola (GVP), which is the only theme that will be more dominant than the Gold Parabola (GP) monster theme, going forwards. Which brings me to my next question: Are You Prepared? If you have a prediction of where the next $100 move for gold will be, please throw it in the garbage. Thank-you. Focus on being prepared to mentally stomach regular daily $100 price gyrations. Decide now, if you are in gold as a member of the gold fan club, or to make money. If you are here to make money, please view this chart with the current actionable HSR (horizontal support and resistance) levels highlighted in blue:
  15. Gold Reality Club Chart
  16. SGOL's price is 1/10th of the gold price. The first HSR corresponds with the 119.80 area, approximately. That is equivalent to 10x 119.80 = $1198 gold.
  17. Having sold at the top of the market in the 1980 gold bull mkt, I can tell you that one of the great errors made in a Parabolic Event is, the investor keeps waiting for "the correction".
  18. Look closely at that chart. It is a 60 minute chart. Waiting for a correction and strategically placing orders to buy weakness in a pyramid formation, are not the same thing. The great tactical error when dealing with a Parabola is the investor becomes convinced prices must retrace greatly before they should buy anything.
  19. One of you, who I've nicknamed "The Rock", because of your unbelievable ability to maintain your cool under pressure, had your final sell yesterday at 1211 on a buy on weakness from 1209 into 1202. You all need to dig deep and find the courage to stay on the buy on weakness, systemically, but keep the size tempered so you don't blow up. If you can't take a surprise $100 gold price GAP against your positions, you are in WAY TOO BIG.
  20. Those of you using my pyramid generator to systematically mimic what the "banksters" do in the gold mkt as they scale in and out with thousands of positions like Picasso working a Canvass, you will find the pgen of exponentially greater value and power going forwards, as team "gold price predictor" gets mauled to financial death by GVP. The Gold Volatility Parabola.
  21. Here's a look at the gold weekly chart. While the daily chart is showing conditions a little overbought, the weekly chart is flashing a "squadron" of buy signals on the oscillators.
  22. Gold Weekly Chart. While the short term Stochastics and RSI is overbought, the long term Stochastics and MACD and TRIX oscillators are flashing monster buy signals, the type that occur during parabolic moves.
  23. Do NOT trade your core positions. Don't even THINK about doing that. If you can't grip them tight enough in your hand, put your hand in a vice and yank on the lever so there's no way one ounce of CORE gold gets sold now "to get in cheaper later".
  24. I told you all as the year started: "The theme for the YEAR, for 2010 is... THE GOLD PUNISHER. Gold goes on the aggressive, goes on the offensive."
  25. Any doubts on that now? Well, Gold has been working with it's POPGUN weapons so far. Wait til you see the rest of the Punisher's arsenal....
  26. Special Report For Website Readers: Send me an Email to freereport3@bell.net and I'll rush you my latest VIX & ATR report! It's time to stop worrying and start ringing the cash register! I'll include a special video on the GDXJ so whatever the juniors do over the next 3 months, you're in the gold driver's seat, not the paper money coffin!


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