I think he is right about the juniors and is why I still have a death grip on my core holdings.

June 8, 2010

1. “I think, therefore I am.” – Moody Blues Rock Band, and amateur gold investors around the world.

2. “I respond to price, therefore I am.”
–Professional Gold Investor around the world.

3. I quoted you GoldLion’s Jobs report analysis last week. He termed it the jobs report “movie”, using an expletive to describe the stars of the show, the comex banksters. He outlined the coming falling of gold into the report, to be bought, followed by an astroblast upside out of the report, to be “cash registered”.

4. All materialized in the gold market according to script. Price tanked into Friday’s 825am jobs report. Then it blasted upside in a two day destruction of the gold shorts. GoldLion is the greatest juniors gold stock trader in the world, and rang the cash register 50 times over the past week in one juniors stock alone.

5. This is not just a gold bull market. It is the Gold Era. Juniors stocks should be the focus now, with no time table for demanded profits. Simply respond to price and ALL else will look after itself. Some of you are moving back to bullion for the immediate gratification. Wrong decision. Gold stocks will maul bullion and everything else on the planet, with impatience getting the worst beating of all.

6. Gold is the world’s economic health thermometer. Price is about to burst above its latest 1250 August futures high point, & will likely do so in minutes or hours. That “gold thermometer” high, DEFINES the world as in worse financial condition than ever. The gold punisher is on the offensive for 2010.

7. For those of you who sold off huge wads of gold into last week’s sell-off in terror, or into previous sell-offs as you played top-caller or “it’s all over” caller, you really did the right thing. I’m not being sarcastic. Gold’s volatility is growing now, and is only at the very start of that growth. The banksters’ gold whipsaw is in play, and you need to carry a reasonable amount of gold into the coming firestorm, not an amount that the banksters will take from you in their next blitzkrieg, like taking candy from a baby. The next blitzkrieg that could possibly feature a drastic removal of margin (the debt drug) from worldwide gold markets.

8. June is seasonally a weak month for gold/silver, and the first week of the month can be strong. So far, that strong week script has played out. Respond to what comes next, rather than predicting it.

9. Many believe there are 3 “non-confirmations”. The Dow and the Transports, gold stocks and gold bullion, and gold and silver. My view? Wrong, wrong, and wrong. Focus on confirmations, not non-confirmations.

10. Gold stocks, via the GDX, are pushing on the edge of an all-time high, and doing so during the greatest financial crisis in the history of the world, a deflationary vortex that is so horrific that mark to model fraud accounting was needed, to prevent an institutional all-asset selling frenzy… to zero.

11. Silver is a precious-industrial metal, and, like the GDX, is chewing into a massive overhead HSR (horizontal support/resistance) band.

12. That takes time. The question you need to ask yourself is: Do I have enough core silver, now, to be comfortable at $30 an ounce? Silver has a bull continuation head & shoulders on it. Is it as good as the “Michaelangelo” pattern on gold that showed up between $680 and 1033? No. But it’s real and it’s there, and you just had $2 of price weakness to get in the game. Yes, price could turn lower. Yes, the pattern could abort. You can’t operate profitably with that pathetic “what if’ mindset. If silver falls into July, you buy. You respond to price. End of story. Don’t think. Just respond with action. If price rises, you ring the silver trading cash register, while leaving your core alone. It’s that simple. Silver looks phenomenal to me, and I see nothing in the price action of either gold stocks or silver bullion that is out of place with where we are in this crisis, nor out of place with respect to Dow and Gold pricing.

13. A lot of ingredients are in place for a big move up in the stock market. Insider buying, put to call ratio premium extremes, oversold technicals. I’ve bought the weakness with a focus on China. Let me be very clear: I’m not calling any rally, nor buying any bottom. I’m buying weakness in the Dow asset. If 9700 blows out, the Dow could actually crash before any rally occurs. A break below the Feb lows by the Transports and Dow Theory kicks in. On the bear side. Even the bears are looking for a rally in the stock market now. Be prepared, 100% of the time, to respond to price, not to analysis. Or prepare to be destroyed.

14. What are the key price levels where I would be taking action on the Dow? Keep in mind that I only sell strength and I only buy weakness. That’s not just what I do, it’s who I am. Here’s a look at the Dow, both weekly and daily, with my projections. The key focus must be that this is the greatest crisis in the history of the world, and there is no solution. There is only the gold punisher. There are only two outcomes. Either we go into semi or even full hyperinflation, or we go into a Dow death spiral. There is no happy ending to the OTC derivatives nuclear bomb story. Only agony. Notice that I’ve projected your buy/sell actions for both scenarios.

15. Dow Projections Report (video)

16. What about Gold? How high could gold go on this leg? Here’s a look at the gold pricing now, and why I think we could hit not just $1300, but $1500 or more on this intermediate leg up. Any june sell-off is a monster buy opportunity, if you are lucky enough to get it. Elmer Fudd Public Investor is fastened to his audience chair, with his seat belt on. At gold $1500 to $1700, the price-chasing moron will ask, “what’s going on, should I be in gold?” The banksters will answer: “Yes you should, and we’ll give you some of ours, to help you!” As the public tries a final “one more price chase for the gipper” in gold, a horrific crash has an extreme likelihood of occuring from somewhere around those levels. It will not be the end of the bull, but the beginning of the next phase of the crisis, likely featuring the US bond market and US dollar on the main stage. Or should I say, the main roasting oven.

17. When the public enters gold bullion again, it will be at thousands of dollars an ounce, and not out of greed. They will be financially broken and terrified. Here’s an advance screening of the coming Elmer Fudd horror show and your gold bullion price party show:

18. Gold Bullion Projections Report (video)

19. What about gold stocks? I’ve got an $87 handle on the GDX. It’s about $50 now. The wiener parade is liquidating, playing their 2008 Memory Lane broken record so many times, they are now pushing the limits of their own sanity.

20. GDX: Gold Stocks Projections Report (video)

21. As far as gold juniors go, well, I’m talking space helmets. Is yours on? Mine is, and I’m sick of hearing all the blab of reasons why gold $1250 is negative for gold juniors. The only thing negative for the juniors, negative for YOU, is listening to these idiots. To repeat, June is a weak month for gold, but that is not a top call. “Prepare to buy” should not be translated as “Sell now before you lose everything!”.

22. Tweaking a single profit-booking order modestly by 30% in size, one of dozens of such orders in the market, many layered in at vastly higher prices than where we are now, should not be viewed as a sell everything and shoot up on heroin call. Be focused on increasing your core positions on all weakness, if it happens. We can’t know if gold falls in june, so we can’t act in the market like we do know…

23. I’ll leave team Memory Lane to help you sell all your junior gold stocks now while the banksters roll on the floor laughing. For myself, the focus now moves from an initital “juniors core in the water” as gold broke over 1033, to individual stock action. While my competitors are moving away from juniors, I’m accelerating drastically my focus there. Some of you who listen to me will make megabucks as the gold juniors do all that the internet stocks did, at a MINIMUM! Remember, time is your friend, not your enemy. Project price, not time, or you will be destroyed. Asking the question, “when will MY juniors rise” is the question that will destroy you. This is a long long event, and unknown to most of the gold community, liftoff on the Gold Juniors Rocket has already occurred! The question is:

24. Are You Onboard?

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June 8, 2010
Stewart Thomson
Graceland Updates