Jan 19, 2011

1.As I ended my self-imposed blackout of reading other writers, I READ intently on Friday Jan 14, and I really already knew what was coming as the theme; a mountain of what would be termed "correction analysis" that was in reality fearful selling of their own positions, a frenzy of loss booking, followed by their subs, and an insane "hope" that they would be able to get in cheaper later.

2.The situation turned out to be even more grim than I thought would be the case.There was a clear maniacal obsession to "make something" out of the current blob of sideways movement.A blob is a blob.When is a blob not a blob?

3.Never.

4.When fear or greed arrive, you can feel them, and they must be managed, not justified.The more fear, the harder you need to fight.You have to understand that you have a fear threshold and once you cross into the panic zone, liquidation will occur.Only trading smaller can help you with this issue.

5.If you are trading too big, you will face fear and greed and you will have to surrender, to a degree.You turn into a blamer as well looking for a cause of the losses against paper money.The saddest part is that those who curse paper money the most, in the end still bow down to it as God, on their knees, blubbering in tears in front of the photocopier at the worst possible point in time.Don't gloat when times are good, or the grim reaper will put you on your knees in front of the photocopier too.It's a horrific reality that can break a full grown man as he faces the weakness of his soul.The winners face their own weakness. The losers bury it in the closet with their hope chest.And lose again!One more loss for the gipper, one more failure to face the mirror of their soul.They can delay the end, but not escape it.I've been on my knees blubbering in front of the photocopier, handing the banksters my holdings while they hold a laughing contest.That is the low point of market existence, the low point of how low a human being can go, so I know the reality of being a broken man.

6.So does GOLDLION.King Kong has watched the photocopier take $100 million while he was in the fetal position in front of the photocopier.We all faced the mirror.Unless you are born into a bankster family.....So have you.

7.There are those of us who can learn from our "pathetic states" that result from price chasing and price plopping, and those who still have too much pride.

8.In the market, it's not the "few, the proud, the marines".In the market, the meek inherit the Earth, or at least, THE MEEK GET RICHER.Rich is good enough for me, and I assume for you!In THIS crisis, the proud are going to hit bread and suicide lines.I absolutely believe that is coming on a mass scale that has been unseen for a hundred years, because the level of greed and pride hit levels unseen for a hundred years.

9.Only the PGEN combined with trading smaller than you KNOW is rational can end your personal horror on your knees in front of the photocopier.The photocopier is not God.It is a DEMON.

10.The only tool the banksters use in the market is: The PGEN. There is not analysis.There is... the GRID.

11.The use of put options, shorting, etc, are all tools that can help you manage the financial end of a correction, but in the real world, the practical world, they are better termed "degrees of surrender".

12.Fear can become terror.The investor begins liquidating wildly, enveloped in terror.I can pretty much "read thru the lines" of most investors and writers and I have a fairly good sense of what they are actually doing, what they are feeling, verus what they are telling me, or telling their readers, what they are doing in the market.There is a "face saving" exercise, but the theme cannot be ignored.

13.I want gold to break $1315 and fall another $100 and preferably $200.I don't think that is going to happen.I always want gold cheaper, because I always want more. I don't really care about the dollar price rise.

14.I care about my ounces count, so I always want price weakness.Few understand the rationale, which is why few build anything except what amounts to a partial and failed hedging of the dollar's continuous devaluation.

15.That's not good enough for me.I want ounces of wealth growth.

16.Regardless of anything I want, the highest current probability is that we've already either bottomed or are very close to a bottom and we are beginning move higher.

17.In terms of time, we've been in a $100 price range for gold for 3 months.Could it go on in time? Yes, but I think we are near resolving the situation.The banksters have bought all mild weakness with a high level of aggression, suggesting they also believe gold is to move higher, not lower.

18.There were just too many technical analysis "hacks" making statements of total nonsense, assuming and SURE gold is in a correction, one that is going way lower.Morris Hubbartt was probably the only technical analyst who thought gold was and IS going quite a bit lower, yet was a very aggressive buyer anyways.Bob Hoye understands the bullishness of the COT reports.Jim Sinclair sits on his monster gold throne unmoved by all the wiener statements.Other than those 3, almost everyone else failed totally in this correction to do anything except to assist the banksters in their collection of gold from the gold and fund community, at least in terms of how I read their REAL MARKET ACTIONS.If you know other exceptions, send them congratulations and let me know about them.Thanks!I sold NO GOLD or gold related items into weakness.I bought.You can FEEL it in my writing, not just today, but on the DARK days.

19.All was possible.All IS possible.Gold could go lower, and you know I hope it does.But the most likely scenario is a SCRAMBLE to buy gold as it "SHOCKINGLY" blasts higher, a scramble by all the losers who took themselves and their people out of their gold.

20.My trading accounts launched a SUPER SURGE to a NEW HIGH last night, while the top callers frantically called their broker, Mr. Oscar Mayer, for a latest quote on their wiener pack of US dollars they ran after, before it got away.The USD is more likely preparing to start a massive new down leg against gold, not an up leg.

21.Those of you who traded just way too big over a $100 downmove in gold are not finished if you engaged in some liquidation and loss booking, but you need to understand that the big money plays are exceedingly rare.You can't create them with analysis.Nor can any of your gold analyst heroes.

22.Most of the time in the market, you must accept small money gains.Because that's all there is within properly managed risk parameters.

23.Even when you look at stock mkt guru Mr. MACRO's best plays, they pretty much all involve responding to massive price weakness on the buy, more than getting the prediction end of things correct.

24.The Dow 6500 lows are being left further and further behind, and were labelled "generational buys" by Mr Macro as they occurred.I think a better term is, "generational FAILED to buy by most" lows.My core position buys put on into Dow 6500 in both the general equity and gold stock arenas now have massive amounts of dollar price distance between current price and paid price.

25.Do NOT touch your core positions and do NOT engage in INSANE market behaviour by attempting to RECREATE situations like OCT 2008 in your MIND out of a $100 gold price consolidation.

26.You can't wade into a market with monster risk capital and allocate it all based on where price is supposedly going.You must allocate massive risk capital into play based only on response to massive price weakness.

27.OR YOU WILL BE DESTROYED IN THE MARKET.

28.Like a ticking time bomb, you will get some plays correct, but that tick, tick, ticking will never end in your ear, and then: BOOM. I don't like the sound of that game.

29.Corn blasted to ANOTHER new high last night, tagging $6.65 a bushel, mauling the top callers again, and wheat has once again "spoken" to the $8.00 a bushel top callers and the message is: Do you think you're tough?You're not tough.I'm a steamroller that is coming thru here.Clutch your paper dollars.None of your top calling crayons will help.I'm coming to finish you." -King Wheat. Jan 19, 2011.

30.If King Wheat and Queen Rice have their way, the dollarbug top callers and their crayons and photocopiers will soon be saying hello to... "Doctor Starvation".Should be quite a show.I suggest you get your popcorn early, because the banksters are ordering it by the dump truck load.

31.Remember that neither wheat nor rice trade on the US stock markets.You can only buy them on the futures markets. Or on the London stock market via the funds trading there.If you don't understand futures, I'll be posting a video today that should help.Futures, structurally, are safer than stocks.But it's world where you just have to "say no to drugs".Futures are not the drug, but leverage is available.Leverage is the drug.Buying futures with no leverage is low risk.Buying futures with massive leverage is high risk.Claiming futures are inherently risky is one of Fudd's favourite statements.Suggestion: Take a look at Fudd's account statements if you want a definition of "inherently risky".

32.You can buy a stock with about 70% leverage.That means you can put up 30% of the value of the stock and operate with borrowed bankster money on the rest, "to make more".Leverage magnifies what you are already doing, not what you want to be doing in the future.If you are losing, you will lose more with leverage, and then fall into a trap of looking for a "big one" to reverse the mess.That will only compound the mess.

33.With futures, you can trade with no leverage, or with more leverage than with stocks.That's the only real difference with futures and stocks.That, and the rollover issue.Futures contracts have expiration dates that need to be managed regularly.Remember that you want to put up the full notional value of the contract, not the exchange margin amount.

34.Money is moved from the loser's futures ACCOUNT to the winner's account at the end of every day with futures.With stocks, there is a 3 day settlement.The structure of a futures contract, never mind the underlying item, is vastly stronger than with stocks.Of course the banksters tell Fudd that the least risky product is the most risky, just as they did with gold.Some things never change.

35.I was at an investor presentation last night for a natgas and oil company.The CEO said he was a natgas man, but given the volatility of natgas, he was moving the company to a 50% focus on oil.Not a bad play, although he's doing it at the wrong time totally.He had no idea that natgas is poised not just to rise, but to outperform oil.

36.Check out the Graceland Gym.Superman installed an "Ounces Of Wealth" Calculator.It's fully automated.He called it a Net Worth Counter but I want to change that to just Ounces of Wealth Calculator.Why?Because sometimes you want to see your net worth in ounces or grams, but other times you may want to see the real net liquidation value of a STOCK you hold.

37.Let's say you own 200,000 shares of a junior gold at $3.20 that you are operating in the PGEN.That's about $640,000.But you want to know the real amount of wealth that holding IS.So you enter 640000 in the ounces of wealth calculator, hit go, and out comes both the number of ounces and number of grams. The net liquidation real VALUE number. Down the road, you can check in again, and see if you built some ounces of wealth.

38.The road to wealth is getting more ounces.My ounces of wealth calculator is one tool to get you on the road to that goal.

39.There is no "rounding top" on gold.There is no multiple head and shoulders top, and there is no diamond formation. There is a small 3 month price blob with a 2/3 chance that gold blasts higher and joins the new leaders, agricultural commodities, in the march to new highs.There are some shapes drawn on the chart by the banksters' kiddies."Look son, look at all those people over there."-bankster to his 5 year old son."Where dad?" -bankster kiddie."Up there, on the cliff, look at them all jumping off after you played with your crayons.Look, they are throwing us down their gold before they jump off.Watch as I throw some paper money in the air, look at them run off the cliff and leap after it." -bankster."Can I play with the crayons again, Dad?Please, that was fun!" -bankster kiddie."No son, not right now, right now the grown-ups need your help, to pack away all this gold."

Grid Time!See you out there!

Thanks!

Cheers!

St out