Remember Children, Listen to Jake and NEVER Suck Your Thumbs!
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As I suspected (though I was never bog-standard certain), gold and silver broke their fevers today on a brief pop on the dollar. Listen, they’ve needed a rest for some time now, so let’s not get overexcited. If you have been following the blog, you’ve got a tonne of cash and you are probably riding some hedged covered calls as well.
If not, let that be a lesson to ye. Bad news is, I don’t think we’re done. Good news? We’re still in a bull here and the only thing that you’re giving up here by holding and waiting is a little opportunity cost.
And who knows, we could reverse and take off here tonight (I doubt it), and you could be ahead of the game. In the meantime, I stand and wait, and look for opportunities in some of these ridiculous rare earth metals. They too could use a rest, but perhaps not as much as our PM friends.
God bless, and stay away from those thumbs tonight…
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LOL
Ah, the dreaded Struwel Peter… We still threaten to call him every timewe see L with her finger in her mouth.
Those germanz are sick bastids.
A well chosen cautionary illustration. I have no idea where you found it, but am impressed nonetheless.
“Strewwelpeter” is actually the name of the sick bastid author of this German children’s book, and the dude chasing the kid is traditionally called The Great Long Red Legged Scissor Man.
The book of “cautionary tales” was originally published in 1845, and is allegedly the best selling children’s book of all time. My own wife’s parents (who are liberals to the core) had an English translation copy of this that my wife and her sisters read as little kids.
And you wonder why the Germans made so much trouble for the world post-1850 or so?.
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Sorry… the author’s name is Heinrich Hoffmann (sounds cosy, no?). Strewwelpeter was the name of the whole book of cautionary tales, sort of like Mother Goose.
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We have the book – i dont remember mother goose cutting off little kids thumbs.
Mother Goose is English — much more pussyish.
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When are you getting back in EXK?
When I stop out.
Actually found the whole book on line. Pretty goofy, no?
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That is one of the more bizarre things I’ve ever seen.
Breathtaking! I’m not sure what I think about that. That is the 1845 version of letting your kids watch RoboCop so they can see what happens to bad guys. I don’t let my 2.5 year old watch RoboCop, so I probably shouldn’t order that book either. Still, something to be said for showing teenage boys gory driver training videos. And I do have some Viking anscestors… Call me undecided but tentatively not supportive of that book. Except as hilarious content for adults to chuckle at. That thumb taker art is truly amazing!
Well, the Germans were more Goths than Vikings.
Visigoths to be exact… Huns, you know… Barbarians?
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Well, apparently I’m about 1/8 Visigoth too.
1/8 Visigoth
1/2 Viking
1/16 NA Indian (via her: http://en.wikipedia.org/wiki/Quanah_Parker)
5/16 English/Scottish/mystery meat
Read Jack Whyte’s Skystone series yet?
No, had you recommended it previously?
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No. But I can tell by your numerous allusions that you are vociferous in your love of quality works of fantastic fiction.
Speaking of stupid biztchez
Some folks seem to think that if the economy gets better, the Pm’s, commodities ,etc. get trashed. As I know next to nothing about such, does that line of reasoning make any sense at all?
sure, but what we have here is a debt issue and ultimately a confidence issue. These short term moves, situational improvements are micro and while they may cause nausea we need to keep our eyes on the macro pie.
The “some folks” to whom you refer keep calling a top in hard assets, referring to them as a “fear trade” that is due to unwind any day now.
These people haven’t been paying attention.
As the economy improves, demand for commodities increases.
Hence the rise in oil from $30 to $90 in the last two years.
PM’s are a little different, but a strong economy has always been gold’s friend during this bull market.
Gold is not a “fear trade” but a proxy for the waning credibility of ALL paper assets.
ETA: “awaiting moderation?” Hmm.
Not sure why that happens… apologies….
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Thanks men…staying the course. Carry on!
Jake,
Any take on TCK with all of the flooding going on in Australia? It seems that most of the mines for coal used in steel are shut down and TCK is a Canadian producer.
Has had a big run up. I looked at chart with your standard indicators and wasn’t sure what I was seeing. RSI looks over bought, but not sure about the others.
http://stockcharts.com/h-sc/ui?s=TCK&p=D&b=5&g=0&id=p19026489236
Thanks
Overbot, yes… but a Jacksonian… I believe our buy in was…. $15 or so?
I’d wait for more.
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I’m a putz. Didn’t buy at $15. I can’t wait for the Jacksonian Jr’s.
The what?
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Since TBT is a leveraged inverse ETF doesn’t it also suffer from decay like the FAZ’s of the world? I want to hold this long term due to the pending bond bubble but not if it decays.
Try TBF. No leverage, just inverse. Less decay.
Short TLT
Easier said than done. Good luck finding shares to short in any of these leveraged ETFs.
I can short just about anything… but tlt isn’t levered
Really? Who is your brokerage? Mine always has problems locating shares–especially when shorting ETFs.
Seems to me the dollar does not have much more upside
if it to stay in this longterm downtrend.
If being the operative word.
I think EXK would be a buy in 6.30 range, not sure about 6.
It certainly could fall through the 50 day sma though as well.
Agreud.
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