And it is the Very Best of Times

I cannot recall a more jubilant month of trading. More often than not, epic gains follow horrid losses. Hence the lesson to remember from all this is to remain optimistic, even in the face of harrowing losses.

Everything worked this week, even gold. The bond boars are back into their pens, being prepped for slaughter. Rickard Santelli is less vocal about his dire predictions and the market has its swag back, that sense of invincibility that cannot be quantified with a passing glance at the indices.

Believe you me, I needed this respite and have received it, much faster than I had ever expected. I am now in a position to apply risk back in the way that I am accustomed to. I am not concerned with repeating the Four Horsemen of financial instability because that was a one-off event, an outlier amongst outliers in a sea of confusion. I have my bearings about me again and intend to push the envelope next week, adding back leverage to the mix, in order to expedite my return to grace.

Have a great weekend.

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About a year ago I lost a heinous amount of coin in the stupid shares of ALJ. Whatever could go wrong went wrong (extra Murphy) and I lost my shirt in the stock. It was a fine sunny day, not so different from today, when I capitulated at the bottom and sold to lock in the loss. The pain, it was too much to bear. Fast forward one year to the exact day and I am buying the very same stock, yet again.

I started a small position in ALJ today and will buy more on dips. This is called ‘revenge trading’ and I shall get my satisfaction, in this lifetime or the next (extra Maximus).

Aside from the emotional aspect of the trade, it is a play off the Brent-WTI spread and the seemingly endless lack of pipeline infrastructure growth in this grape nation, keeping domestic oil prices at unnaturally depressed levels, again benefiting those with refineries directly.

Lots of red across my screen, yet I find myself flat for the day. My largest position, TSL, is higher and several of my trading positions are also in the green. I’ve set a goal for myself, one weekly and another monthly, by which I intend to adhere to. To accomplish my goals, I will have to trade aggressively and move into large cash positions at a moments notice, so don’t think that I am marrying any of my holdings.

I had meetings this morning, which kept me away from the whimsical world of blogging. Someone that I know wanted to send me three million dollars, so I had to give him a little face time.  In between the gym and my lack of a proper night’s sleep, I am ready to crash, which usually happens on Friday night. The weather is just about perfect here and my allergies have eased up. Aside from the fact that I was stupid enough to bury myself in a massive hole filled with losses, everything is pretty good.

Nevertheless, I do not intend to take vacation this year, for the second year in a row. Last year I went on a few mini-vacations, busy with renovating the new house. This year I have too much work to do and can’t see myself away for more than a day or two.

Right now, I am waiting for TSL, SGEN and RUBI to pop. I like TSL to $14, SGEN to $55 and RUBI to $15.

If gold/silver have truly bottomed here, the pawn shops bank coin. Why? Because they have a shitload of gold in inventory, being held as collateral against egregiously high interest rate loans. Companies like EZPW and CSH make absurd amounts of cash when gold is on the rise. Believe it or not, gold is the #1 household asset in America. Everything else falls victim to deflationary pressures. But people have lots of rings and necklaces lying around the house and the pawn shops are glad to accept them at rip-off prices.

Being a novice investor in the miners, I have a disadvantage of not knowing the businesses intimately. However, I do know how cycles work and understand that the most leveraged companies perform the best during periods of reflation. Using the tools available to me inside of The PPT, here are most leveraged gold/silver stocks out there, primed to rip higher should the metals continue to run.

GOLD

BAA

ANV

GFI

AU

ABX

NEM

IAG

AUQ

KGC

SILVER

CDE

HL

SSRI

SLW

The vast majority of these companies have clean balance sheets, which makes me suspicious. If any of you metal experts can shed some light as to how these miners are financing themselves, I’d greatly appreciate some feedback. From what I understand, mining for gold and silver is a very cost exhaustive process, requiring vast amount of capital. You see it in the coal miners, laden with debt, blowing up and going out of business. However, for some reason, the gold miners stay afloat.

Nevertheless, the vast majority of the miners are down 80-95% from their highs. Out of 47 gold stocks listed, 40 are down more than 50% from their all-time highs. So whatever run these little bastards have enjoyed, year to date, are childish parlour games compared to the potential here.

Again, I am comparing this to solar circa 2012.

A great opportunity might be presenting itself here. Let’s be vigilant not to miss it.

I believe a seminal shift in investor sentiment is upon us, regarding the prodigious precious metals. You all know how I feel about gold, categorizing its owners as miscreant tenants of barbarism. Right now, however, I am long the barbarian. As a matter of fact, I am the barbarian. Would you care to see my hordes?

I cobbled together funds from three underperforming positions and crafted a decent sized one with CDE. It was a rather bold move, considering how overbought gold and silver both are. However, over a longer term time frame, these stocks are inexpensive. Imagine buying solar stocks at the beginning of its mammoth turn in 2011, like I did. Now imagine if you actually held those stocks and dream of the money you could’ve made.

Remember the SALT conference? Do you recall how bearish our fellow industry professionals were? These clowns are dying to get pessimistic. For them, positioning long gold is a proxy for hating on the market, without having to take on shorts. We all know who buys gold stocks: Tea Party people, anarchists, old men and sophisticated money managers who live in a world of phantasm.

This move in the miners seems legit. Volume is robust and there are numerous excuses to be long, even at extended levels.

I like CDE to $10.

My ytd losses have been reduced to 18%.

I started a sizable position in CDE.

My RUBI purchase is working wonders; but I’m bleeding out a little in some of my other positions. At the moment, my three largest holdings are TSL, SGEN and RUBI. I am tempted to cut a quick loss on one of my other positions to make room for something that is trending, which is obviously gold. Say what you want about the metal, it is working.

Actually, now that I am looking at it, there are two stocks that I might sell.

It is a delicate balancing act that I am partaking in and sometimes I get it wrong, like when I sold FANG at $70. The point is to keep going and never look back. Some deals are wins and others are miscommunications. There aren’t any losses because we’re not done making money.

That being said, I’m unsure as to whether the weakness in momo stocks is temporary or something that might persist over the next few days. Just remember the pain you felt when these stocks were heading lower and try to keep moving, if your brilliant ideas stop working.

We don’t have time to wait. These ideas have to work quickly.

Now that the market has firmed up, I am sure the sages at Goldman will speed up the Alibaba s-1 filing, introducing the alien troll, Jack Ma, to America’s dinner table.

When on Alibaba, you can buy all sort of meaningless crap, such as tape cassettes and “inorganic chemicals.” Hell, you can even buy used cars. I am sure this is where I will buy my son his first used car, through some chinese e-commerce website operated by some chinese alien spy named “Jack Ma.”

What could go wrong?

Nevertheless, it will be the world’s largest IPO ever, so you better get used to saying his name.

Slightly off topic, Markit is going to IPO soon, maybe even today (I haven’t checked). The ticker will be MRKT and they are major players in financial information, much like BBG. I will probably buy MRKT at some point in the not-so-distant future.

Futures are slightly higher and I’m surprised to hear the jackasses on the teevee still talk about the Fed raising rates. The Fed will never raise rates because that wouldn’t be beneficial to the ball-jugglers in Washington who enjoy bankrupting the country. There is debt to service and interest on said debt. It is my belief the government couldn’t care less about the 70 year old retiree, who can’t make ends meet because his CDs are paying less than 1%. The godly folks in Washington only care about themselves. It is in the best interest of politicians everywhere to keep interest rates at zero, in order to maintain the status quo and to spend the people’s money with reckless abandon, which in turn is good for stocks.

I’m a huge advocate for spending the people’s money with reckless abandon, as long as I make money too. It’s a zero sum game and I’m into ‘scorched earth’ as a general rule of thumb.

Then again, I’m a bit of a cynic.

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With “Yayo Yellen” backing the market, I’ve decided to reenter the orgy of speculation, hosted at my olde harem. In this place of purpose, I’ve made and lost millions, hedonistically, without a care in the world. Truth be told, I have a rather humiliating admission to make.

Yes it’s true, I’ve been drinking Iced Vanilla Machiatos (sp?) from The Starbucks. Normally, I’d never delve into such delicacies, always preferring the blackest coffee humanly possible, without effeminate additives, such as sugar or cream. Proudly, I’d chew on coffee beans and suck down 8 ounces of French Pressed coffee. But now, I’ve gone astray, waiting on lines for some jerk to make me a beverage that’s as distinguished as a 40 ounce of St. Ides malted liquor. The shame, it’s almost too much to bear.

Now that I got that off my chest, I am happy to report my winning streak continues. One of my smaller holdings, but an olde favorite, IFON, took off today. I expect it to trade nothing less than $7, within the year.

Also, I sold out of my MET position, for a 4% profit, in order to buy RUBI. The Rubicon operates a solid business and its stock is trading absurdly cheap, still $2 below its IPO price. At a minimum, RUBI trades to $15, then probably higher, as risk, for lack of a better word, continues to beat the brains out of all the Rick Santellis of the world, much to their chagrin– indeud.

NOTE: We launched a new iBankCoin page for Facebook, one that I intend to keep updated in the most egregious way possible. Make sure to “like” it. For some reason, it makes me happy.

I swapped out of MET for RUBI.

Target: $15.50