Money is power, and in that government which pays all the public officers of the states will all political power be substantially concentrated. — Andrew Jackson
What a great day for the Jacksonian Portfolio, no? I felt like the Great Man re-born, breaching the lines of villainous (shorting) Redcoats with my trusty white charger, cutlass slashing down upon their ridiculous feathered bonnets, calling for my Horsed Kentucky Rifleman Sharpshooters to release another volley of musket upon their pasty-pale visages. Triumph!
And what’s more it’s a triumph over fear, as well, for with our solid Jacksonian Core Portfolio, we know that these wins are not only for today, but will be substantiated again tomorrow. For when the fickle winds of Washington change course again, and blow against our frail banking system’s walking corpse, rather than hold it aloft as it has, we will be prepared. Hard money and assets will be our stores of value, no matter what our increasingly Zimbabwean central government shall make of our paper printed with the General’s startled masque.
Today’s “core” wins — “early” wins, I call them — include PAAS (+6.82%), GDX (+5.97%), SLW (+ 3.03%) RGLD (+3.93%%), NRP (+3.68%), SLV (+2.89%) GLD (+1.46%) and newcomer to the Core Portfolio: SSRI (+6.62).
Of the Core that was involved in earnings tonight, we have TSO giving back strong wins from today (currently – 1.52% @ $17.53 in AH) and Mr. Anderson — ANDE — up large after hours (currently +13.95% @ $20.10 in AH). You will recall that I sold the $17.50 June calls on TSO two days back, as I felt it was getting overextended. I will likely close that position tomorrow, at profit. I still retain my unhedged position in ANDE. Other Core holdings that were down slightly today include MON (-0.88%) which needed a breather, and TC (-0.91%), whose 7 cent pullback today was also not unexpected after many days of gains.
Other non-core silver and gold plays I am currently invested in include EGO (+3.69), ANV (+3.82%), and EXK (+4.85%). Last, recent recommendation ATHR (-1.16%) was also off a bit. On the oil front, I bailed on all but a stub of my triple earl ERX (+10.71%) at just under $34.00, as that was where a significant fibonacci line lay, and I’ve learned to respect the fibs on these fast moving triple ETF’s.
I am still bullish on our friend Earl, however, as I have been since Fly cursed his name. My two “core holdings” — which may soon be nominated to the Jacksonian Core — are PBR (+2.93%) and OXY (6.66%) , the best of two nations, in my humblest opinions.
I must admit to revelling in some of Fly, RC and CA’s crazy picks today (among them SONS, and FLOW), and I even jumped into one of my own (ABK) — it is fun to make hay while the SONS is shining, after all. But make no mistake, these discretionary picks are a tiny portion of my portfolio. For like the leaves of summer, these high flyers will soon fade, as will our newly reinvigorated “saved” banks. We must always be girded with our Jacksonian Core to withstand the coming tsunami, and we will continue to build on that foundation as we jog onward. My best to you all, and keep building!
Important: Hat tip and my thanks to Trader Caddy and to Chanci for the suggestions on SSRI and EXK, respectively.
Aside: If I could tell you to get into one sector in the coming weeks, my friends, silver would lessen my worries for you and yours.
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UPDATE: I decided it would be almost hypocritical of me to urge silver on my blogreaders w/out taking at least a small position in AGQ (Proshares Double Silver) .
Or that could just be me rationalizing my inner Yukon Cornelius.
You make the call. That said, I’m picking up some AGQ here @ $42.87.
UPDATE: Picked up a little more at $ 43.55
Caveat: VERY VERY VOLATILE! If you buy any of this crazy stuff, there’s a 73% probability you will be drafted to become intergalactic Herald to a very large planet eating sub-god, with little sense of humor, and you may lose your pension.
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Jake,
Caught a falling knife last year and bought up a bunch of SLW and AUY in the 9s and 7s, respectively. It’s been tough holding onto these (esp SLW) but I’m determined to make a profit in both trades (investments).
It’s nice to hear you have so much confidence in silver. I can’t wait for when that mess turns green for me. I’m actually considering buying a little more. What is the time frame for you and your “core”?
Sounds like you’re planning on holding these, expecting ridiculous highs?
Jake- your blog is becoming must read stuff. Thanks.
Meanwhile …. It’s raining threes in Boston!
Heckler (& Koch?)–
Yes, my thesis is that both gold and silver will run over the next 12 mos, due to extreme discomfort with the monetary system.
Since silver has recently been undervalued on a historical basis in comparison to gold, I think it will run a lot faster and further. I would not be surprised to see any of the core silvers triple in the next 12 months, thanks to their leveraged position in relation to the underlying metal – which could triple in itself from here.
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KC- thanks, mon.
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About trading silver…..
The AGQ I was asking about yesterday is the Double Silver ETF….
Shorting ZSL is also fun.
Didn’t know if you had heard of them.
Eric- sorry, I had thought you were talking about hedge fund I mentioned yesterday, lol!
Double ETF’s can be extremely volatile so I try (although I rec TBT here) not to mention them for anything but a passing trade. That said, its an interesting way to leverage the POSilver, so I’ll look more closely today.
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Another great post, JG
Re: Silver
May have to hit the bars today
DMG —
If you mean the 100 oz’ers (and not the forties), hell yes.
Grab a couple of maple leafs while you are at it.
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Dollar getting biatch-slapped again. The volumes on AGQ are kind of spotty at this point — at less than 500,000 per day shares traded. It’s also subject to serious gaps. I would play this one cautiously, without a hard stop, but with a very attentive soft one. Silver will fluctuate considerably worse than gold, so remember your position sizing on this one.
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Note: update buys on AGQ. Took a small position, we the emphasis on small, as this is one crazy ass ETF.
NOT a core holding!
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Jake – TBT is just above the 200d-MA. Any idea on odds for a close above, or do we take a breather and consolidate?
Yogi —
As you know, I had hedged this one out (with sold June $51 calls) two days back, because I thought it would consolidate at 50. So, if the 10-year isn’t going to collapse all in one day, I would think it would come back to that point — or at least fill this gap at $50.19, before taking off again.
The PPT does not like TLT getting hammered, it pisses of their bosses, the Chinese.
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Jake- I’d forgotten you sold the calls. We’re still above the upper 2SD B-Band which is at 51.85, so a res is in order. Still it’s amazing to see/hear 4.25% yields.
Sold TBT on the bad auction pop and bought FAZ. If the gov’t announces another plan to buy their own paper, and TBT tanks like it did last time, I’ll reload TBT.
While I am not trading it, watch INWK after the bell for a downside move. I think they are in a lot of touble with Chrysler crapping out. Management noted in the recent 10k that they are heavily levered to a handful of clients, I think they could be one of them.
Thanks for the tip!
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