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The Goonch will speak now, and you will listen…
Mr. Jake has gone for his annual Feast of Bipeds Cheering for Quadrapeds. Let me explain. Mr. Jake goes to get drunk and forget about life for a while. (The Goonch heard these words from a magic box that was crammed with singing humans. The magic box was owned by two fat fisherman who once were noisy above Goonch’s sky, but now make no sound in the Goonch’s belly.)
The Goonch is cross with Mr. Jake. Mr. Jake goes to watch delicious healthy quadripeds with funny names run around in a clockwise circle while he cheers and sips brown crazy water. The Goonch feels this is a tragic waste of healthy delicious quadripeds and would much rather Mr. Jake lead said delicacies down to the shores of the Ohio River where the Goonch is waiting patiently.
No matter, the Goonch’s belly is full this day, anyhow. Many many piles of silvery and gold pastries were strewn about the Goonch’s lowland parlours and the Goonch did not allow those opportunities pass by uningested. Restraint is not the Gooch’s bag, for the most part.
So today, the Goonch supped well on AGQ at $232.66. It was delicious, if filling. He also had his fill of AG at $17.47, and SLW at $36.30. On the gold side, the Goonch was grateful for the bits of ANV floating at his meridien at $36.05. Most propitiously, The Goonch was grateful also to chance on some scrumptious EXK at $9.56, between his usual fare of drowned puppies and kittens. The Goonch thanks all dumpers, large and small.
Be assured, the Gooch still has ample appetites, and if you refuse to bring your small children, or your healthy brown quadripeds close to shoreline where I might show my lip, then I will be pleased to ingest more silver-that-is-not-fish.
Most corpulent good health to you all.
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Addenda: For those of you fretting about the CME increasing margin rates on the silver markets, I again ask you — why do you think they are doing this? As the most astute Jesse from Jesse’s Cafe Americain points out — why didn’t they raise margin rates during the dot com bubble, or mortgage rates during the real estate bubble if they were so concerned for investor’s safety? Is the CME some sort of sainted brotherhood looking out for the small investor?
Ummm, no. As I’ve mentioned on these boards before, and Jesse, to his ever-lovin’ credit independently corroborates, it looks like those sneaky bastards are running out of silver.
I just found Jesse’s blog tonight, while researching this unprecedented fourth (no! 5th!) margin raise in two weeks by the CME. Tell me — who acts this crazily expeditious in such measures? Can you imagine the Fed raising short term rates four (strike that, five!) times in two weeks?
Is this not a sign of panic? Occum’s Razor, my friends, shave with it!
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Ah .. It’s why they’re called precious.
I lost my secret “Jake Gint” decoder ring but rest assured, when my mom buys me a new box of Lucky Charms, I’ll dig deep. I think I understand what you are saying.
ZSL Oversold = Buy with both hands?
However, joking aside, I appreciate the CME comments specifically as that had me wondering. Your explanation makes sense
Google “goonch” and you will be enlightened.
I only heard it today, as someone on the PPT called me a “goonch.”
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“Some days you’re the hapless villager, some days you’re the Goonch”
http://www.zazzle.com/some_days_youre_the_goonch_tshirt-235961059893599455
Curious. Isnt AGQ and silver miners basically the same trade? Apologies as i wrote that below also.
No, AGQ is the price of silver x 2.
An ETF for the miners you can use is SIL.
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That unhandsome beast looks like he might have munched on Osama last night.
Senator Gint I’m with you on EXK (EDR:ca), had 2 nice low balls filled yesterday, another on-deck.
LOL
Seconded
Picked up some of the miners on the cheap today–adding to AAU and EXK, starter in AG. Following your timely and always helpful PPT posts. But your ibc blogs continue to help me be able to make more sense of how the PMs trade.
Consistently timely, that JakeGint is.
lindsey, you know I hate it when you front run my adjectives =p
ok–i’ll try to wait for you to post first buddy:)
Jake’s at Emerald City watching Murphy fight Occam all the while the_real_baum [sic] dropping is another bailout.
Didn’t the NYMEX and CME raise crude margins in Feb from $4k to $5k … for the first time in over a year? But for silver it’s up to $12k for maintenance and $16k for traders? Something doesn’t smell right … isn’t crude where all the charges of speculation have been levied and that’s all they’ve done on margin requirements to reign in all the specs? Doesn’t add up.
It adds up if you recognize that a hold for delivery will sink those fuckers.
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Seems someone heard me … margins raised on crude now
Blessed be the beloved Goonch. Too strange to live yet too rare to die.
Back where I come from people go “noodling for the goonch” and you can Google Noodling for the Goonch. Where has the English language gone since the explosion of high tech?
Anyway…. Jake, help this capitalist out by giving my site a shout out for Derby Day, Please!
See you at the window……….. — TP
I’ve got no idea… my favorite horse got the one hole, which means he’s pretty much done (Archarcharch), so I’m probably going to go with the punctuation horse. Liked his ride at Santa Anita.
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Are you aware that in the Land of the Rising Sun, the quadripeds race around the track COUNTER-clockwise? Treu.
Yes, I had heard that somewhere.
When are you and Fly coming for a Darby?
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Huh ???? As they do at Churchill; Anita, and everywhere else, or am I Standing on my head???
You are correuct, it’s the opposite way around. They run clock-wise in Japan.
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1000 apologies… Meant to say opposite direction as here in the states. The goonch thing had my head spinning counter-clockwise.
And in Matsumoto they eat the last place finisher raw + Basashi. I had to drink a lot of Shochu to get that down. Would have been lynched in cattle country Alberta for that.
Senator – I’m 3 traunches deep in EXK with you.
I hear the words of the patron through this beast strangely named goonch. Was he swallowed? Along with the odd puppy and kitten?
Ben Davies believes that quite a bit of silver scrap is entering the market.
Once that inventory is chewed thru, the price will resume its rise.
He makes some excellent ties and cuff links.
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Doesn’t that just make you want to go swimming. Yikes.
Curious as to why you would play AGQ as well as silver miners? Isn’t it the same trade?
i was wondering that, too. I know the miners normally follow the price of the physical, so maybe it has something to do with time?
No AGQ is the silver x 2 ETF.
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You got more guts than me.
Jake, why are you trying to create reasoning for your backwards call on Silver? First you placed a chart showing how it retraced to a certain fib level then that broke…then up goes another chart with the moving average…then that broke too. When are you going to recognize the trend is over? Its done. Silver is going back to where it started and who knows how low this thing will go. Why dont you just relent and say you were wrong?
Lol. Good luck with that theory. Over the next few years, silver bugs will find their surroundings increasingly orchidaceous, while dollar dogs hungrily howl their blues at the moon.
I learn a new word every day on this blog; from the patron or the commentators.
Please link to a post where I showed a “fib level.”
You are as full of shit as a Christmas goose pre-head loosening.
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LMAO!! “pre-head loosening”
I for one just started nibbling at 200.
I saw that episode of River monsters. That fish thrives in an area where the Indians (dot on head not feather in headband) cremate their dead on the river and the remains float down stream. The cremation fires serve as dinner bells for the Goonch which chows down on toasted Indian remains. One of the better episodes River monsters. When Jeremy Wade had a big one on, it pulled him down stream and he swam across the river to get better leverage! Reeling in one of those must be like reeling in a garbage can by the handle.
Just got me some ANV to add to my new PM horde. Half full….we’ll see if everything goes lower.
Jake, Enjoy yourself at the Derby.
Thanks.
AGQ in “Bollinger Band Crash” territory now, which means it’s got something like a 95% chance of rebounding nicely here in the next few days.
Got some more, of course.
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Thanks. I just scooped some up too.
The decline has gone further than anticipated. Margin calls are hammering the trading houses and increasing the selling pressure.
/SI is really oversold here, could start turning.
Let’s not forget the $DXY is also oversold, thus the bounce in the dollar and the resulting decline in the PMs. This is not to be completely unexpected.
As for my AGQ position, ouch.
I recall this same thing happening with Skiffles (SKF) back in the day. It sold off hard, then turned around and broke new highs.
Is this the end of the silver bull? I don’t think so, but even if you believe it so, there will be a rebound in AGQ and it should be quite violent.
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not prepared to let go of my AGQ (calls) yet..
bouncy right now…
pullbacks are healthy, pullbacks are healthy, pullbacks are healthy…
You are going to have to connect the dots for me Jake.
Silver has to trade relative to futures, less you create C&C or RC&C. Not so with equities as it relates to SKF. Margin requirements would impact silver differently IMmosthumbleO.
Just a question from an ignoramus here. I generally defer to you in most precious matters.
Spell out your acronyms please? Contango&Cash?
Cash & Carry, Reverse Cash & Carry
Added $EXK at 9.14 couldn’t help myself.
Just picked up AGQ for 199.55…..hoping I got lucky and timed the bottom perfectly!! Not sure if I should add to SLW or start a new position in AG though.
Jake, at what point would you reconsider this C-wave finale theory? Thanks.
Well, we’re either going to get rich or go broke. Buy when there is blood in the streets, right?
Holy frights.
Jake, savage sell on AGQ. read that just as I was about to buy. fade him? I don’t like the other side of the parabola.
Below 30.
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At the track, just hit the exacta so I guess I won’t chuck myself off the balcony!
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A few of my, what i thought were “bottom feeding” GTC’s were hit earlier today. I can’t tell if that’s a good thing or not considering today’s “Carrie”-esque display of blood. Check back in June?
EXK @ 9.06
ANV @ 35.25
…and
AAU @ 3.91
SLW @35.50
oh, and AG @ 17.01
I guess since the dollar is booming, oil is tanking, gold is sinking and silver is being obliterated, that means that the U.S. and all of its economic problems and fiscal irresponsibility is now over. How exciting. I think I’ll sell my stocks, gold and silver and buy CDs, bonds and put any extra dollars into bank savings. When silver hits $1.37 next Tues. I’ll buy a few coins for the kid’s Christmas stockings.
Bernanke must have mandated higher margins for crude and silver so the $ would rally thus enabling him to stay on plan without $ destruction and commodity inflation … A continuation of low rates and high liquidity will be forced into something more productive than futures markets. Maybe banks start loaning money to small business and peeps on Main Street now and the next bubble will be equities, art & diamonds.
Such pessimism … Cowboy up!
Savage just puked. Jake knows of what I speak. A bit of a contrary timing indicator.
Bruce, this was a bit irresponsible. He “puked” his AGQ, that was it. He put out some “alternate strategies” and raised the possibility of a D wave.
I was at the track and could not read his announcement when you sent this. I was shocked, but should have been skeptical.
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I found it his puke/giving up the ghost, funny; because earlier in the day, he admonished me when I joked about killing myself because PM’s were indicated down, again:
“Might I suggest you are a candidate for turning off the computer for the next week. You are just torturing yourself and your mind is convincing itself that this will never turn. At this rate you will sell at the exact bottom.”
I think it is just inflation.
Silver is real money and things like dollars are getting more expensive.
GOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOCH!
Taffy-pull.
Got in at $ 1483, about 20 $ too early – LOL
Wow, Silver just got destroyed – sold hard right into the bell
I’m sure we’ll be hearing how a ton of fund panic liquidated today
I’m sure Jake will be right but I think I’d rather wait for something resembling a bottom first.
That AGQ or SLV daily chart is just stunning, redefines the term ‘off a cliff’
Goonch? Quadrapeds? Smooth shaving with Occam’s Razor?
You out-do yourself, Sir.
Have a couple of crazy waters for me.
I had many, and two days to go.
Maybe I’ll get lucky and F. Scott Fitzgerald myself by Sunday.
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http://acrossthestreetnet.wordpress.com/2011/05/03/remembering-the-great-silver-bubble-of-1974/
Remembering the “great silver bubble of 1974”. Some interesting history for those under 47.5 years old.
In the series “Different Strokes” it was “The Gooch” that was the bully:
http://www.youtube.com/watch?v=ePl_PEJKdTc
Whats the strategy for the morning? Double down into AGQ? LMAO
More AGQ is in the order book, Jonti.
You don’t seem to understand… I sold 85% if it above $300.
You really should get a sub to the PPT, dear boy, the narrative is so much easier to follow there. 😉
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Jake, $HUI touched the 200 day today and is again hovering around that 535 mark you spoke of in March. Does that have the same significance for you now as it did then ? I was reloading yesterday and today and smell a bounce soon.
We will have a bounce very soon. Whether it’s a bounce to new highs remains to be seen.
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Just as long as your gooch is not speaking, you’ll be aight.