A Song for the Times?
Well, so much for Helicopter Ben’s New York Times- abetted “tightening” kabuki theater act.
Did you enjoy it? I hear he’s been studying at the New School.
I dunno, maybe the guys down at Goldman called Bernanke up last night and asked him for some help in getting out of their Euro shorts, since DXY (sorry, no quote yet — see? [[DXY]] ) had run up to about $80.30 today by lunch time, only to tuck tail and (Black?) swan dive right back down to $80 flat just in time for Benjamin’s Jawboning routine at 2:15 pm.
That particular bit of mummery and prestidigitation must’ve in turn convinced at least one or two bag-holding kaftan merchants from Milwaukee to buy dollars again, because the dollar index got all the way to $80.10 by late afternoon, giving us all that familiar “blah” feeling at the close.
All pretense seems to have dropped away after the stock mavens went home, however, and the dollar is now (as of 12:36 am Eastern) trading back down to yesterday’s low’s at about $79.74, looking at a “next stop” of about $79.50, and then $79 even. Party on, Garth (and Darth… Vadon, that is).
These incipient moves should be enough to get our rally on in the gold and silver sector, not to mention our other hard currency equivalents including earl, natural gas, and the specialty metals. I was extremely busy today and I apologize, but my punishment was not being able to add much to the portfolio, although I would’ve loved to finish my Allied Nevada Gold Corp. [[ANV]] accumulation today. I am quite sure it will be more dear tomorrow.
I was able to add 60 more June $40 [[GDX]] calls at $5.80. They were a standing order, and I think I may have been able to get them even cheaper, but beggars, chooser, etc. etc. I now have total 120 of those $40 June strike calls, and I think I’m done there.
The rest of my exposure will remain in liquid equities, and I hope to add to positions tomorrow in the usual suspects, and perhaps some NovaGold Resources Inc. (USA) [[NG]] , New Gold Inc. (USA) [[NGD]] and Northgate Minerals Corporation (USA) [[NXG]] . I also like Exeter Resource Corp. [[XRA]] ‘s relative strength as of late.
For silver I may dip my toe in the Chanci selection – [[SVM]] , as I’ve admired their price action recently. I may also look to grab some additional [[PAAS]] . If [[CDE]] stalls in the early trade, I may also add to that one.
Platinum is reviving tonight along with its brethren, so don’t forget about [[PTM]] and [[PAL]] .
On the non-precious side, I may grab some [[ERX]] for a ride similar to that of [[AGQ]] . I also continue to like Petroleo Brasileiro SA (ADR) [[PBR]] and Occidental Petroleum Corporation [[OXY]] . I also happen to think SandRidge Energy Inc. [[SD]] is undervalued here, and it is a perennial favourite (sic) of The PPT .
Last, don’t forget Thompson Creek Metals Company, Inc. [[TC]] , Teck Cominco Limited (USA) [[TCK]] and Titanium Metals Corporation [[TIE]] in the specialty metal names, and Sociedad Quimica y Minera (ADR) [[SQM]] , as their lithium is a bargain here as well. I expect tomorrow will be a good day for we merry shipmates of the U.S.S Jackson.