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Gold Stocks: The Pluto Report

Stewart Thomson
Nov 9, 2010

1. The Gold Magician. He waves his magic wand, and the gold community awakens. All you thought was going to happen in 2006 and 2008, is happening now. Gold bullion pricing over $1200 is the rocket fuel.

2. Gold stocks are the rocket and the question is: Are you ready to ride? Here’s a look at San Gold. That’s the weekly chart. Look at the screaming buy signals on the indicators right here, right now. The stock cratered through the summer while the gold stocks juniors as a group soared. There’s nothing more demoralizing to an investor than to watch your stock tank, while the group sector soars. Something “must be wrong”, you think. Yes, something is wrong, if you are not a buyer of such weakness, a buyer of your own demoralization. The San Gold rocket is going to Pluto, with or without you on board.

3. Take a look at ECU Silver. One of my top 15 juniors researched to the bone by the world’s greatest juniors trader, GoldLion, and scheduled, in my view, for Takeover! It’s up 100% in a couple of weeks and 25% yesterday alone! But look at the ECU Weekly Chart for the real story. The stock is not ending, but just beginning, its ascent to the stratosphere! Notice the “Golden Triangle”. That’s the new area of play for ECU, the new area of play for you. You need to focus on buying weakness as it happens in that area, not predicting some Alice In Wienerland correction to pretend lower prices you think you missed out on. There are no missed prices, only those creating market fantasies for themselves, versus those focused on the now, on the real. Here’s the very real chart of GDXJ Daily Chart. I don’t predict corrections. I buy weakness. Know the difference between weakness in an uptrend and a correction in a fantasy mind. Here’s a look at the GDXJ Weakness With You On The Buy Chart. Use a chisel to pick up stock. Look at all the little bouts of weakness. That’s what you need to focus on, reality, not your needs. Demanding a massive correction when the market is issuing monster buy signals is not smart.

4. The mid-November to late December period is another seasonally powerful period for gold. Forget about corrections and get focused on the real world weakness that is here and now, and take it. Keep a large amount of risk capital to respond to more serious weakness. That weakness may happen now, or it may happen many months from now, or 20 years from now. Who cares.

5. I’m selling at 20 times my buy increment for many of my trading positions. Not 2 or 3 times. Twenty times. That means if I’m buying a 50 cent fall in a gold stock, my sell target is $10 higher than my buy price, for that portion of risk capital.

6. The gold stocks bottom line: Think Large. Take Charge.

7. There is, ironically, only one realistic factor that could derail the gold stocks rocket, which is already blasting into outer price space, and that is a bullion price that soars too high, too fast!

8. Be concerned that if gold rises too far, too fast, it means the system is imploding and markets, including gold stock, will go to cease-trading, ironically, while bullion soars even higher. So don’t sell all your bullion to buy gold stock.

9. That’s the risk and it’s 100% real, because the marked to market total bankruptcy of the financial system is 100% real. The bankruptcy is 100% marked to lies now, 100% hidden.

10. I don’t see gold crashing or going vertical. Gold would have to soar thousands of dollars higher, maybe tens of thousands of dollars higher, and do it in just a few months, to prove the system is blowing up and facing shut-down, and the bankster “devaluation of everyone except themselves” game has gone out of control.

11. Here’s what I do see: The opportunity, here and now in gold stocks, for 90% of the gold community to make back all they lost since 2006, plus another 500% to 1000% in gains!

12. I focused on buying the Dow into the lows of Oct 2008 and March 2009, yes, but also gold juniors stock. A second buy opportunity is now at hand, and has been at hand since the spring, when I called gold stock players to the buy plate.

13. Some of you are sending me emails asking about “a correction soon?”. You don’t understand. Just asking that question is a tactical error, and a big one. Get out of the mind set of demanding the market answer to what you think you need, and start responding to what it is offering.

14. I told those who wondered if it was “2008 again” in the early summer that the opposite of 2008 was much more likely at hand. That’s what is occurring.

15. Here’s the bottom line: Those looking for a “correction” are looking to miss the greatest market move of the past 100 years, staring you right in the face, right here, right now and it is Gold Stocks.

16. While Elmer Fudd Public Investor and his wiener patrol of golf ball advisors crawl to the “gold bullion over $1400 is a buy” line, after spitting on gold at $250 an ounce while loading up on Enron, you need to kick these total market losers out of the way, and get real, which means getting focused on gold stock.

17. What is happening now with gold stock has a 90% probability of making that epic bullion move from $1000 to $1400 look like a peanut play.

18. Let me repeat: Gold Stocks now are likely the greatest market play, in anything, of the past 100 years.

19. I told you 2010 is the year of the Gold Punisher, and that is now the case. I also told you Natural Gas would blow away oil in time. I view the natgas glut as about as worrisome as an ant in the way of an elephant. The elephant being the OTC derivatives and Gman twin debt monsters. Natural Gas is arguably the world’s most volatile commodity. Those staying OUT now, think they can trade it later. That idea would be funny if it wasn’t so stupid. What they will get later is the beat down of a lifetime. Here’s a look at the Nat Gas Chart via UNG-nyse. Look at the accumulation box.

20. That chart looks explosive to me. Remember when oil began its run from $10 to $147? It did so during the “ultimate glut”. What do YOU see in NatGas today when you look out your market window? I see Oil at $10-20.

21. I stepped up my natgas buy programs by 200% last week in terms of size. The volatility of “Natty” is not gone. Picture a Grizzly Bear in hibernation with a puppy dog inside the cave poking the bear, laughing at it, telling the Grizzly all about the nat gas glut.

22. That is those who think natgas is going to stay low and/or go lower. Here’s reality: The NatGas Puppy Dog Glut Team is about to be ravaged. The Grizzly BULL is starting to awaken, and we’ll soon find out how much a Grizzly listens to the “nat gas glut” logic of the puppy dogs. Send a few more puppy dogs into the cave. It doesn’t matter. None are coming out alive. The Nat Gas Grizzly BULL is going to eat the puppy dog bears like a fat guy in the movie theatre eats popcorn.

23. Here’s a second look at NatGas via the futures market on the weekly chart: Natural Gas Super Bull [down] Wedge.

24. That pattern is in play now. Note the massive drifting bullish down wedge formation, as well as price holding for time above the 2008 lows. Weather forecasters are predicting one of the coldest winters in a hundred years in many areas, but it is the twin monsters of gov't debt and OTC derivatives that will provide the rocket fuel for new highs in natural gas. A rocket that leaves the natgas naysayers behind reading stories of Alice In WienerLand to themselves while babbling incoherently from inside the insane asylum, “but I don’t understand Daddy, how could natural gas have gone up, there was a glut!”


Nov 9, 2010
Stewart Thomson
Graceland Updates
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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 qualifed 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:

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