iBankCoin
Joined Apr 19, 2009
721 Blog Posts

This Wall Cannot Be Breached

[youtube:http://www.youtube.com/watch?v=ZfINBYmGD1A 450 300]

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I don’t often talk about the University of Kentucky on this site, being a “mostly” Louisville Cardinals fan (and they don’t like it much around here when you’re “both.”  You might as like to try to “borry” from a man’s still instead).   However, UK freshman, SEC “Player of the Year,” “Newcomer of the Year,” and quite possibly #1 NBA draft pick John Wall makes for a nice metaphor for today’s dollar discussion.

Wall, while deified in the Blue Grass for his eye-popping offensive talents, is going to be the number one (or #2, his teammate DeMarcus Cousins may go #1) draft pick because of his defensive capabilities, which are sometimes similarly eye-popping.   It’s arguable, for instance, that he beat Vanderbilt at Vanderbilt all by himself with a last second shot block on a dead-eye three-point shooter, followed by a clean pick of the ball right from said startled shooter’s hands.  

What’s that?  Of course Youtube has the clip!

[youtube:http://www.youtube.com/watch?v=EZzXhhd6CRA 450 300]

Pretty spiffy, no?   You don’t see that kind of instinctive defensive thinking in a lot of freshman.

And that kind of defensive, er… “wall” brings to mind our old weekly dollar chart and the “fib wall” we’d identified as going to be a tough area to breach.   It turns out, the 200-week exponential moving average (“EMA”) served as a barrier as well.   Look at the slow topping we’ve seen here, keeping in mind this is a weekly chart:

usdweekly

I think this bodes well, at least in the near term, for our commodities “risk trade,” and especially the precious metals, which are perking up quite nicely this morning as the dollar (DXY) drops below $80.00.    [[AGQ]] is taking all it’s friends out for a champagne party, and purchasing them Norma Kamali handbags.   Fellow silvers [[EXK]] , [[CDE]] and even rag-tag Hecla Mining Company [[HL]] are also again off to the races.  As always, the best name in silver is Silver Wheaton Corp. (USA) [[SLW]] .  On the gold side, you know my favourites (sic) but NovaGold Resources Inc. (USA) [[NG]] is really picking up steam as it matures here.

Keep an eye as well on our dollar proxy [[UUP]] , which we’d like to see stay below $23.60 for our shiny metal dominance to continue.

On top of our usual metal trades, it seems that the regional banks [[KRE]] are also back on thier horses.  You know I love BB&T Corporation BB&T Corporation [[BBT]] as a long term hold, but don’t be afraid to grab a little Fifth Third Bancorp [[FITB]] and Huntington Bancshares Incorporated [[HBAN]] here as these “Ohio chancres” will someday soon be able to cover up their cold sores and sashay out into the bank M&A saloons once again, all a-flooze.

Last, don’t forget about Elite Eight  pick Cree, Inc. [[CREE]] which is still getting its wind back (thankfully, so is SanDisk Corporation [[SNDK]] ) and it’s sister Veeco Instruments Inc. [[VECO]] , which has really been gaining some nice ground recently.   I like both as hedges against future “Inflato-rama Drama.”

My best to you all.

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42 comments

  1. Dubz

    Awesome, that as timely, education and entertaining.

    Thanks, answered some questions that were in my head.

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  2. Trading Nymph

    50% retrace is one heck of strong support and if can hold it….it could take out the wall. But, 50% Retrace is also one heck of a strong resistance level too…….today’s FOMC could be our game breaker.

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  3. Trading Nymph

    50 SMA is support just under….battle royal.

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  4. toptick114

    As always, the best name in silver is Silver Wheaton Corp. (USA) (SLW: 15.85 +3.46%) .

    Agreud.

    Indeed!

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  5. toptick114

    The ‘Buck’ goes nowhere until or unless the 81.40 level is ‘cleared’ on a ‘Close’ and can stick for 48 hours and if should such scenario play out in the future, perhaps a shot at 83.

    However, from a longer-term perspective………Doomed!

    72———-> 62————– 52/55

    Indeed.

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  6. CommonGardenSlug
    CommonGardenSlug

    Jake, I know this sounds crazy (and time-consuming), but I will endeavour (not sic, I’m Canadian), to use “sieuc” instead of sic from now on. Like this ^^

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  7. Jayhawk91

    Did you see this pic of John Wall at a Nike photo shoot? They had the whole team there with Cal and nobody noticed a slight typo on Wall’s jersey.

    http://i301.photobucket.com/albums/nn63/Fatherhawk/untitled-3.jpg?t=1268760248

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    • JakeGint

      Damned jealous Jayhawkers.

      Did you see this preview to Obamacare?

      Coming to a (medical) theatre (sic) near you!

      ___________

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      • Jayhawk91

        Gravatar changed in honor of the man, Sherron.

        Nice, I know Drudge has been running horror stories from around the socialized medicine world recently. Obama and his congress are hell bent on cramming this this down our throats whether we want it or not.

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        • JakeGint

          Just threw in a last minute “don’t do it!” e-mail to my Dem Congresscritter, explaining the supply problem, which I really don’t think these innumerates have even considered.

          They think there’s a demand problem now…..

          _____

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          • Jayhawk91

            I’m think they are intentionally trying to take down the entire capitalist system once and for all.

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  8. DMG

    10 Surprising Facts about American Health Care

    Not really surprising to me but here are ‘a few’ of my favorites from the list:
    Fact No. 1: Americans have better survival rates than Europeans for common cancers.
    Fact No. 2: Americans have lower cancer mortality rates than Canadians.
    Fact No. 3: Americans have better access to treatment for chronic diseases than patients in other developed countries.
    Fact No. 4: Americans have better access to preventive cancer screening than Canadians.
    Fact No. 5: Lower income Americans are in better health than comparable Canadians.
    Fact No. 6: Americans spend less time waiting for care than patients in Canada and the U.K.
    Fact No. 7: People in countries with more government control of health care are highly dissatisfied and believe reform is needed.
    Fact No. 8: Americans are more satisfied with the care they receive than Canadians.
    Fact No. 9: Americans have much better access to important new technologies like medical imaging than patients in Canada or the U.K.
    and my personal favorite-
    Fact No. 10: Americans are responsible for the vast majority of all health care innovations.[13] The top five U.S. hospitals conduct more clinical trials than all the hospitals in any other single developed country.[14] Since the mid-1970s, the Nobel Prize in medicine or physiology has gone to American residents more often than recipients from all other countries combined.[15] In only five of the past 34 years did a scientist living in America not win or share in the prize. Most important recent medical innovations were developed in the United States.

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    • TA

      Facts 3,4,5,6,8,9 and 10 are not suprising facts – you get what you pay for
      Which is why we need a 2 tier system

      Fact 1,2,and especially 5 are interesting – especially considering obesity rates – perhaps there’s suprising facts around that you can dig up?

      Fact 7 is subjective

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      • Sikander

        And despite all that our life expectancy is lower.

        http://en.wikipedia.org/wiki/List_of_countries_by_life_expectancy

        One needs to also recognize that there are more differences between for example Canada and the US than simply how the health care system is run. Size maters. No nation, no matter how their system is run, will be able to support the range of specialists that the US can support and that will directly influence care options. Canada with 1/10th the US population has a size constraint as do most other nations. Size also influences the volume of drugs and new treatments that a nations FDA counterpart can process. So even if you had identical systems you would still see a difference in the range of care options available here vs. there.

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        • JakeGint

          Treu, but on an apples to apples basis — ie, the care given when you actually appear at a hospital (never mind all the exogenous physical ailments, the difference in calculating infant mortality, etc, etc), you get your best outcomes in the U.S.

          Makes sense, as this is where people have the ability to pay for better care.

          ________

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  9. Jayhawk91

    Jake or other hoops fans. Join this pool that is posted over on Bluechip Bulldog (http://bluechipbulldog.blogspot.com/).

    Here’s a link to the pool. If you have a user name at CBS.com, you can log in and join the group, if not just register and lock in your picks. The participation is a bit weak so far and more folks jumping in would make it more interesting.

    http://bluechip.mayhem.cbssports.com/e

    By the way, Bluechip is a bunch of traders who used to post on Slope, but got tired of the awful bearish bias. Brinkley, who is the main poster there, has been bullish since last March. She’s got an excellent feel for the shorter term gyrations of the market and is current long several pms.

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  10. Jayhawk91

    Cornell could give UK fits…they almost beat us at home. Very solid b-ball team.

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    • JakeGint

      I will see… I am already in about eleven hundred pools (with no picks made, btw) because of this basketball insane state I live in.

      _____

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  11. adam

    jake, any ideas why EXK hasn’t followed the rest up today?
    added some at 3.30 myself

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    • JakeGint

      I don’t know… I just noticed that myself, when looking over my “big dicked” gains today.

      EXK is one of my larger positions, so I was quite vexed!

      BTW — let go some more risk today. Sold 80 SLW June 11’s at 4.93 and $5.00. (100 left)

      I also sold 1,000 AGQ at 57.73 (1000 left)

      Last, I sold 60 June 40 GDX calls at $7.35 and $7.40.

      _____________

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      • TA

        I too tossed a bunch of SLW

        NG is fucking amazing, really annoyed I missed that one
        I will take another run at it in the low 6s

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        • JakeGint

          When do you see it hitting the low sixes?

          Apres split?

          And I only got rid of some of my SLW calls… still have over 20k shs.

          ______

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          • TA

            My short puts in SLW lost 75% of their value. I let 3/8th go here.

            NG went from 5 something to 7 something in a few weeks. It only makes sense it would head down to its trend line in the 6s, probably in 3 weeks. I’m not chasing it here.

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            • JakeGint

              I would think you’d have a math program on the short puts covering.

              It’s been a while since I took a class in probability, but I would think that it would bemore prudent to take ALL the risk off the table at 75% in the money, and then redeploy further out, no?

              _________

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            • Buzzkill

              So, if you actually owned NG right now (like I do), would you be lightening up? Or would you let it run a little more?

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              • JakeGint

                I do own it, a shit tonne, in fact.

                It’s just now come above it’s 200 week MA. It could drop back to there ($7.03 or so) , as it is a touch overbought, but I likely will not be selling any.

                ___________

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                • Buzzkill

                  Awesome, thanks Jake.
                  I have the TSX version, still a tad under the 200 week EMA on that one.

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  12. KreppaNu

    JG-

    CREE vs. SNDK neck and neck after day two!
    -.03% vs. .21%….

    Appreciate the chart work as of late.

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  13. mrkcbill

    John Wall…..is the whole package…he puts a smile on my face watching him move on the court, he has all the Brooklyn moves! Wait till he gets a jump shot.
    I have Cats going the distance.
    Whats up with State of KY….. Pitino and Calipari…does it get any filthier than that?
    NOTE: I have that game unfolding in INDY…… Think those tickets would catch a bid?

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    • JakeGint

      Um, yeah, a small one.

      I’d like to see the Cats go all the way, but I think maybe Kansas is a touch more mature. UK is the YOUNGEST team in the NCAA’s! Isn’t that amazing?

      Baylor could be a sleeper too, btw.

      ________

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  14. Dwave

    The Sleaziest Coach in a Sleazy Game

    http://www.slate.com/id/2248019/pagenum/all/#p2

    Here’s the other reason: Even if Kentucky wins, historical precedent says that, sooner or later, they won’t win. For example, in 1996, a 35-2 University of Massachusetts team coached by John Calipari made it all the way to the Final Four. A year later, because of a tangled scandal involving Marcus Camby, jewelry, and hookers, the NCAA stripped UMass of its tournament victories, forced the school to pay back $151,617 in tournament revenues, and expunged the team’s accomplishments from the official record book. Then, in 2008, a 38-2 Memphis team coached by John Calipari made it all the way to the championship game. A year later, because of a tangled scandal involving papier-mâché SAT scores, the NCAA stripped Memphis of its tournament victories, forced the school to pay back more than $500,000 in tournament revenues, and expunged the team’s accomplishments from the official record book.

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    • JakeGint

      Yeah, but that was all a consequence of dealing w. kids who were destined for the NBA. None of that was laid at the coach’s door.

      I’m no big UK fan, but you can’t lay Camby or Rose at Calipari’s door.

      Now… “World Wide Wes?” maybe.

      _______

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