Maybe this is the week of the “Paul Ryan Feel Good,” or just the week when Joe Biden rolled himself in a child’s wading pool full of tar and scrap paper, and then set himself alight.
Maybe the world feels a little more optimistic these days than they did even three weeks back. Maybe that’s just an optical (auditory?) illusion. Whatever the reason, the dollar is finally starting to budge a little bit, and we may be sniffing a break of $82.00 within the next week or so. As a result, the risk trade, especially in the precious metals, refineries and earl & gas plays has finally begun to become more appetizing here.
You know I love SLW, and it’s really looking strong again here. After consolidating on the 200-week moving average for ten weeks (but not breaking below it, important!), SLW is now over it’s 13-week and 34-week moving average. Above $30 right now at a close today of $31.65, you might want to set a buy stop right at that low $30-ish level. It’s worth waiting a bit for here, as the last couple of days have been explosive. Almost always, SLW will reward the patient hand. Again, SIL is for you if you do not want to own individual silver stocks.
On the gold side, I don’t think you could do much better than RGLD. Right now it’s forming the right side of a mini-cup, and I really think the next time it breaches $80.00, it will be home free — flying in virgin territory. It’s absolutely astounding what this stock has done over the last 10 years. In 2001, it was trading at less than $2.00. They’ve only gotten stronger in their royalty finance commitments recently, and now appear to be stepping into the big leagues. I also like AUY, as mentioned, and of course GDXJ.
Last but not least, I like the refiners. I love my WNR, and still clutch it, but for my money, I think PSX warrants a lot of attention too. After it settles down from its most recent breakout on the weekly chart, I think it’s a purchase at the $39.00 level. Whether it’s the year of the monkey or the Age of Aquarius, for some reason refiners are hot again, and it’s time to take advantage.
I think this string will run at least to the end of the month, especially if the dollar continues to cooperate. At that point, however, I’m going to start at least selling calls, if not whole swaths of stocks. This POTUS race is going to tighten, and I don’t think that will be good for market breaking into mid-September. Until then, however, let’s play that grasshopper music.
Best to you all.
22 Responses to Brave New World
good to have the Senator back, campaigning again
Good to be back, Thx.
Canuckistani Rex on the VP’s:
psx is interesting
Hope & Chains 2012
Chris Matthews looks clown raped of late. Anectodal tell that the left is in full frontal panic mode. Seriously the dude must be playing Hardball with his own sack. Fucking pussy.
The Election is Over: Obama Won
For the second time in four years, the Republican Party has blown a presidential election through the choice of a running mate. What little chance the GOP had in winning the election has gone up in smoke with the selection of Wisconsin congressman Paul Ryan to join the ticket. Think of him as a Sarah Palin with pants.
You ought to have that cognitive dissonance looked into. With blind spots like that you could be precluded from driving on high traffic days.
With acute judgment like that, I bet he’s a mad trader, too.
Hold on a second… “… my days in the White House press corps… ” ??
Welcome back Jake.
The fly sheep continue to miss out on the best setup
Fly not having a real good day today between his buys of DMND and MRVL. No wonder he’s mum
Nice to have you back!
Thanks H-50! Hope you have not lost faith in the PM markets these last months…
I am aware of the distain you have expressed toward FNV in the past, but it has been outperforming RGLD of late – YTD.
If you don’t mind sharing, why is it that you prefer RGLD to such a strong degree over FNV?
Better quality investments, capitalization, board, etc.
Royalty companies are risky enough, there’s no need to go with a lesser brand.
Take a look at $NG. It’s been amazingly strong over the last 2 weeks. Not trading down at all. Hedge funds keep buying it in size too.
I think the tide has finally changed for NG and it will outperform just about anything over the next few months.
From your mouth to God’s ears.
jake is a sane voice in an insane world