Aw geez, I just had an extremely clever and full of info blog post to make up for my long absence. In it, I went over the weather conundrum, my summer exploits, the state of our miserable economy as guided by the clown show in Washington, etc. etc.
But like a dumbass, when I went to insert my graphic, I inadvertently went “away” from the site and lost the whole fucking caboose. Goshdamnitalltohell. Fuck me.
My apologies, I’ll try to summarize.
One, I’ve been buying NUGT for five weeks to various painful degrees of success.
Two, the 120-month exponential moving average on the dollar ($USD for you Stockcharts buds) was breached for the first time in a decade in late 2002, leading to our glorious metals revolution. Since then, the dollar has bumped but not pierced that line on a monthly basis FOUR TIMES since that initial drop, all of those time led to sad days upon the ascending attempt (the saddest effort ending the first time in February of 2009) and happy, glorious days upon the subsequent failures (remember March 2009 friends?), at least for we PM fans.
Three, the last attempt lasted THREE PLUS MONTHS, from March to June. We are now enjoying another rapid descent. If we turn back up again here, on the dollar, I can probably tell you the PM bull is dead. If not, we are headed to Nirvana once again, sans the blown out brains of the lead singer, etc.
Here’s the thing, don’t buy NUGT tomorrow, as it will probably pull back on a test of $1350. However, if we breach that level like “butter” with no pullback, be prepared to get aggressive. In the meantime, we might get a present from SLW‘s “miss” tonight. AG, EXK and SLW are nascent monsters once again.
All that said, you should also have TBT, as the bonds are beginning their own slow motion train wreck, courtesy of the Bernanke-Obama Hubris Nexus.
Be well. I appreciate you all.