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Gold: The Chart Painters Have You Fooled
Stewart Thomson
www.gracelandupdates.com
July 14, 2009
  1. Another week of victory is well underway! Look at the gold price now! Send every "expert" who told you to liquidate and go short last week a 2 sentence email: "How Do You Like The Burn. How does it FEEL?" Each "cycle" of buying weakness and selling strength produces a stronger person in your HEART.
  2. For those of you who are building a Cbone position (Canadian dollar currency) pyramids…Merry Christmas. It's time to sing "Kachingo Bells" already. USD/CAD hit 1.1725 at the high last week. Already down to 1.1465 already this morning.
  3. Here's the chart:

  4. The uptrend line is broken and both MACD and the 20,12,7 series of Stochastics have crossed over. For most technicians, this is a sign of coming weakness. A "sell signal". For me, it's time to book profit on positions I sold right into the 1.1725 high.
  5. Americans who are worried about the US dollar are probably wise to look first to their next door neighbour, Canada.
  6. Canada exports more product to the USA than China. With a population that is 1/30th the size. Put in simple terms, per capita, Canadians produce 30 TIMES what China does. One day in the future, China will produce on a similar level to Canada. So will India. But for now, the simple solution paper currency for Americans to hedge the USD is the Cbone. Not the Yuan.
  7. I was extremely disappointed in the actions of the gold community last week. Writers and investors, both. I couldn't find a single writer who was calling 905 a bottom. When you get the entire gold community calling for lower gold prices, as happened last week, odds become 99% for a turn to the upside.
  8. One of the world's largest metals dealers told me way back near 940 that 905 would be a bottom. It was. I never told my subscribers anything, because I'm not interested in buying on tips, regardless of the quality of that tip or forecast. As a professional investor, I buy only price weakness, not predicted bottoms. They must do the same and tipsters and charts are crutches, not solutions. Crutches are helpful aids. I use them every day. But you don't need charts to make money in gold. You need: Strength of Character to buy any and all price weakness and sell any and all price strength.
  9. Some of my subscribers who trade short term moves were already on the sell yesterday after buying into what I can only term the absolutely bizarre and surreal capitulation to price weakness, by virtually the entire gold community.
  10. The bankers are master chart painters. It is very simple for them to paint the charts of the world's smallest financial market, and turn the strongest bulls in the gold community into terrified lemmings charging for the gold cliff at the 905 foot level.
  11. Know this: When you pray at the gold chart alter, you are praying to the bankers. Think about that when you draw your next trendline. Those of you who follow as Gospel the bearish pictures the bankers have painted for you on your charts, and liquidated your gold into the current weakness, may be in for a most horrific spiritual experience as price rises "impossibly" against your chart analysis.
  12. Get a grip on yourself. Gold is the world's lowest risk investement. Not the highest. When you convince yourself to "lighten up" into weakness, as a group, you cause the other 90% of your gold portfolio to disintegrate in price. Personally, I don't care, because no matter how much price weakness you cause thru your selling, I'm a buyer thru all of it.
  13. Your selling has brought gold down towards 900. Some of my heavyweight subscribers moved to the buy into the 905 low. If you can't buy a hundred dollar sell off in gold, you shouldn't be invested in it. You are now sailing a damaged "gold ship". Further selling that breaks 850 will ruin your head and shoulders formation. Your cup and handle is already warping. Keep selling into weakness and both will be destroyed. Who loses if that happens? You lose. The bankers want you to keep selling. They are laughing their heads off while they take your gold.
  14. Some tried shorting gold. Yesterdays' upside blast destroyed those of you in that category, alongside a number of funds.
  15. I remember watching a karate movie, where the good guy beats up a bully. And then says to the bully, "what does it take for a man to CHANGE?" By selling gold, the world's smallest market, into weakness, you are a market bully. And ironically, the only person you are damaging is: yourself. I have the financial capability, and a real plan of action in place, to buy gold all the way to zero. You can't hurt me by selling gold into weakness. You strengthen me. You can only hurt: You.
  16. I'm putting out a call to the entire gold community to: wake up. Stop this madness. You are wasting your time calling for the arrest of the bankers while blowing out your gold. The bankers are buying it from you and laughing at you.
  17. If you blow up the head and shoulders pattern you open the door to: Gold $300. I don't care if gold goes to 300.
  18. Let me ask you a question: Do you care if gold goes to $300? I know you do. If so, my words to you as an investor are: Stop selling gold into this price weakness. My words to you if you are a gold writer are: Stop trying be the first to say "I predicted gold 880, I was the first!".
  19. Oil has fallen $15 from the high. My words to you: don't sell oil after a fifteen dollar decline… buy it! The Dow tanks 800 points and now it's a sell? Wrong. It's a buy. And yesterday's upside blast gave a major wakeup call to those who put big money into shorting the Dow. There is no head and shoulders top on the top. It looks like a chart pattern but it's just a SHAPE, not a pattern.
  20. Last week I wrote my article "JUST SAY NO TO DRUGS". Meaning do not sell gold weakness because it is a drug that will cause you tremendous damage. You shouldn't sell weakness in anything, but most of all gold. Few non-subscribers listened. Now I'm booking profits once again, and most of the gold community is wondering if they blew it, if price is now going to soar leaving them behind.
  21. My subscribers have bought hundreds of millions of dollars of gold from the gold community all the way down from 990. We'll sell it back to you at higher prices unless you beat the drug that is: price chasing. Greed and Fear are drugs and nothing more. Stay away from them.
  22. On a scale of 1 to 10, I'd give technical analysis a 7 rating for helping gold investors chop risk and increase reward. I'd give fundamental analysis a 7 as well.
  23. And on that same scale, I'd give buying pure price weakness and selling strength a rating of: 100 billion. Look at your accounts. How does it FEEL? I don't lose money trading in Gold, Dow, Bonds, Oil, or anything else. I make it. If it wasn't for the bankers buying the gold YOU have liquidated at losses or micro gains, the rest of your gold would be priced at under 700 right now. How does that feel? You need to look in the mirror and say, "I'm not going to do this anymore, I'm tired of losing and I'm tired being enveloped in price chasing greed or price tanking terrror. I'm going to use charts and analysis as important market tools, but no more than that. From here on in, I'm going to handle myself professionally in the market buying weakness and selling strength.
  24. I couldn't care less where your favourite guru's charts say gold is going. Wherever it goes, I'm a player. And there to make money. The gold community football team beat on me last week as my subscribers and myself took some discomfort (not pain) and bought right into the 905 low. We were alone. Well, now we've got the ball. And so do the bankers. The buy side has the ball. Time for a touchdown. When silver tanked to 12.43 yesterday, who said buy? Nobody that I saw in the gold community. A BANK said buy at 12.46. My subscribers were heavily on the buy at 12.50. Let's work in the gold community as a team, not as "look at me, I called a thirty dollar down move in gold, I'm the champ", a clown show of amateur bustouts trying to win a homemade gold trading contest. Nobody wins such contests. All lose. Enough said, I have to go now. Profit bells ringing on Dow, oil, gold, silver. All are soaring, so I'm a seller. At a profit. Is your gold falling in value today while I am selling? Answer: No. When my subscribers sell our gold at a profit, we don't cause any harm to the other participants in the gold market. And when we buy, we support YOUR gold!

Special Offer for Gold-Eagle readers: Are you tired of losing money trading gold and other assets? But you believe in principle that gold is the ultimate money? Send me an email and I'll rush you my free 10 point Gold Battle Plan (GBP). I'll include a video covering the mental aspects and market actions into gold 990 and into gold 905. I booked profits non-stop into both moves. If you want to book truckloads of profits while keeping account drawdowns to a minimum at all times, l'll lay it out for you, for FREE, in plain and simple language. Just send me an email and I'll help you change your account statements from red to black!


Thank-you
Stewart Thomson
Graceland Updates

Graceland Updates
www.gracelandupdates.com
Email: s2p3t4@sympatico.ca

Stewart Thomson / 1276 Lakeview Drive / Oakville, Ontario L6H 2M8 Canada

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 attractively priced and the format is a unique numbered point form. Giving clarity of each point and saving valuable reading time.

Risks, Disclaimers, Legal
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 qualified 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:

Are You Prepared?


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