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You are skyying about in your chromium zeppelin, dropping empty champagne bottles from 1,500 meters onto the heads of unsuspecting proles below.  You glance across the quarterdeck and there is your love, half a glass of Dom in her silk gloved hand and the light of Christmas in her eyes.  The finest plum-rose gloss  adorns her full, beestung lips, which are parted ever so slightly in a laughter that  sets her page boy curls dancing in the silver streaked moonlight.

You haven’t a care in the world.   You’ve made millions off the sins of The Bernank, Slayer of the Little Man.  What’s more, the largest part of your fortune is stored in bullion bricks of various heavy metal denominations, lodged safely in your Rocky Mountain fastness.

But some latent foreboding nags– ever so gently — even as you pop the next cork on the desert-dry bubbly, sending that mushroom cap deep out into the lowering cumulus…  You know now that the small plebs, the racers, the gimcracks, the punters who have swelled your gains are finally beginning to pay tribute to your cosseted hordes.  No longer are they satisfied with the quick buck of the latest Sanford Bernstein-driven consumer good craze, or the lures of the Autumn Needham Tech Conference.

No, they now make claim on the Precious, and it’s time to grip the gunwales and be ever so wary.  Behold the gathering storm which will afford us opportunity, if played ever so skillfully, like a minuet for harpsichord, parsed out on a tight-rope.   First, a lesser known blazer, FRG, serves to illustrates our existential dilemma:

This overbought condition is endemic in our chosen sector, fellow aviators.   Note another favourite which perhaps has become too much so in recent weeks:

  EXK will continue to provide gains, I’m convinced of it.  It may even get to $8.00 before 2010 has breathed its last.   I also believe it will retrench rather severely, however, andf quite possibly as far as my target of $6.00.   

 As a result I have taken almost half of my holdings off the table at prices between $6.90 and today’s close ($7.30).  If you have been with me from the low $3 range,  your over 100% gains should be suitable for framing right now.  The choice, however is yours.

I shall see you all across the scudding skies.

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In certain Northern Mid-Western climes, the citizens have become so mushily liberal that — in their overwhelming compassion –they have confined their hapless professional football teams to a regulated indoor environment.

As a result, no one in these left-leaning regions need suffer for their gridiron art in the fashion of Lombardi, Hornung, Robestelli, and other Hall of Fame stalwarts of the past.   Come game time, both players and fans can loll about at room temperature, consuming multiple jumbo franks and 64 oz. Mountain Dews without fear of nippy nose or chilly tootsies.   

Real tough guy stuff, no?    You’ll find it no wonder, then, that these teams haven’t won a Superbowl in… well…

Forever.

I bring this up in order to levy well deserved shit to Chief Admin Jeremiah and his wussified, faggot-assed (not that there’s anything wrong with that) Minneapolis Metrodome Vikings.

I mean, if you are going to be pussified about going to see a game in the weather — despite your arguably holding a home field competitive advantage (see “Packers, Green Bay“) —  then by all means build youself a cozy indoor stadium so you can spare yourself the chilblains on your vanilla layers of Midwest portly.   

But do us all a favor, eh, Minnesota?  Please get yourselves some architectural engineers that will factor in the possibility of snow accumulating on the roof, eh?  You know, just in case it gets warm enough to do so every now and then?

Thanks so much.   Your friends,

The N.Y. Giant Fans With Three Superbowl Trophies and, Not Coincidentally, an Open Air Stadium

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It looks as if The Bernank (sic) and his antics will continue on, at least for the beginning of options week here.   Like a good neighbor, I will be reducing my positions again, trimming here, trimming there and braiding the remains for a nice Christmas streudel rope to be given out to wassailers and other visiting Folk o’ the Yule.

I will probably get rid of the last remnants of my IAG calls, which have been less than satisfactory these last few weeks.  I will likely retain the underlying stock, however, and only be trimming my outsize positions (ANV, SLW, EXK, GDX) to raise some cash for the new millenium, where the chief currency will be penny farthings made up of plastic doll’s buttons.

Again, this is not the long term strategy, and I will not be taking down my core, only my oversized accumulations, which have done so well since September especially.  More tomorrow, if I can get out of my driveway.

Best to you all.  And keep an eye on BIOS and ENTR.   These old stalwarts seem to be making a move again, as do non metal Jacksonians ANDE , TCK and TC.

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We’ve come to another time in the cycle where I must again beg your forgiveness for my absences.  This is just not  a great time of year for me to be doing any blogging.  This is a time for closing, and little else.

And as you know, “Cawfee is for closers.”   There’s a logical reason for that.   It’s that it’s a standard remedy for sleep deprivation.

I’ve got a 7:00 meeting tomorrow morning and I am not what you would call a “lark.”   In fact, I’m rather the wisest of owls.   I believe I shall sleep for 24 hours this weekend, if left unmolested (unlikely).

I submit this pre-amble in way of saying  that I’ve done little with the port these last few days.  I’m down to my last shares of AGQ, and I’ve sold some EXK, but that’s been about it.   I think tomorrow I may even sell some SLW, if the creek continues to rise in the PM sector. 

Tomorrow should tell us if the dollar is going to rally or continue down.  I imagine the break down will be severe should it come.   If not, then it’ far more likely the dollar will rally for a while.

Don’t follow me, as I’m sleep walking, but I will be announcing any other moves in The PPT tomorrow, as they happen.

Best of Morpheus’s Dreams to you, my peoples.

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For now, at least.    It looks the dollar has bottomed for now, and as a result, I will likely be dumping the rest of my AGQ tomorrow.  I will also continue to sell down my overweight positions in EXK, SLW and yes, GSS (which I am overweight for stupid reasons).  Some ANV will go, as well as some IAG and EGO too.  Not a tonne, but I will be raising cashe (sic) munny (sic).

I will also likely sell some other things tomorrow which look overbought despite their not being in the precious metal category.  I shall tell the good gentlepeople of The PPT about that before I make those moves known here in Pikerdome.

What won’t I be selling?   That I will let you know… lucky dogges.   I will not be selling any UPS.

I will not be selling any UL.

I will not be selling any MON.

And I will NOT be selling any TBT.    In fact, I may even add to the latter.

Best to you all, and Merry Kwaanza, Fonzies.

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A Metaphor, of Sorts…

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Let that header sink in for a minute.   Then read this piece from the Indians.   They’re buying gold too.

This week can bring us a near term peak, and I don’t want you to panic in either direction.  I don’t want you to go insane buying gold and silver you don’t already have next week, as I believe we are perilously close to a dollar bottom.

This evening, we are also very close to $30 an ounce on silver, and we just broke $1,400 an ounce on gold.   These are significant levels that should not be tossed aside on a near term basis.   I think we will burst past these levels, but only temporarily, and then we will retrench.

But don’t get me wrong on the ultimate course here.   The Chinese are buying gold.   And they will buy silver.  And they will buy platinum, too.  And in the process of this accumulation, I posit they will make BIDU look like some bland utility stock before this is all over.

However, I don’t want you all getting off on the wrong foot–  especially since Le Magistrate has given you all the green light on silver surger EXK.   Now is the time to be wary as we are reaching overbought levels on multiple fronts.   There will be a time to gorge oneself on silver miners, but now is the time to sip… sip… sip. 

Like a butterfly at a nectar font, you must sip.    And keep in mind the auto accidents, eh?

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 Many of you may know of Hannukha Harry from his comic forays on the old Saturday Night Live.  Well, a similar number of you may not realize that Harry– in true legend– actually wore a formal stove-pipe hat (see above) when doling out socks and toothbrushes and other sensible gifts to the good Jewish chillens over the eight nights of Hannukha. 

I can confirm this, as I saw Harry himself with mine own goyum eyes coming through the garage door entrance (sensibly) of my friend Benjamin Zimmerman’s house one early December evening in sixth grade, when I’d stayed over — at his parents’ invitation– on the third night of the Festival of Lights.  

It was 7:30 and we’d just laid out the traditional borscht and bagels after Jeopardy, when we saw his trademark stovepipe peeking through the door.    Hannukha Harry only comes at sensible times, as he needs to be in bed before ten.   None of this fakakta post-midnight chimney drop-ins for him, he told us.   That, he explained, is for the meshugganah Sinter Klaus — a distant relative and definitely not glatt kosher. 

One of the gifts Harry bestowed upon us that night was The Tale of Sound Money.  Sure, he was easy with the gelt, but aside from the traditional chocolate coins, he told us never to trust a fully fiat currency system, as it would always let us down.   At the time, he told us, the U.S. dollar had devalued from it’s 1913 (pre-Federal Reserve) value by almost 87% (it’s now closer to 95%), and much of that drop was achieved in the decade since Richard Nixon had given up on gold convertability altogether in the 1971 Bretton Woods abdication.   

Harry told us it was only a matter of time before politicians and their allies in the central banks got so greedy that they’d wreck a fiat currency system designed — with the best of intentions — to promote sound economic trade.   There was just too much conflict of interest for any one central bank or sponsor country to trust another, and worse was that temptation more for the “currency of record”  that was held as the “reserve” in a fake money system. 

No, only an anchored “no cheater” metric could ensure a balance of trade that would not bankrupt the citizenry of the developed world, he admonished, with furrowed mono-brow.

And to emphasize the point of the lesson, Hannukah Harry left us with a Canadian Maple Leaf gold coin a piece (he explained he was originally from Toronto), and then drove out of sight in his ’79 Toyota Corrolla (sensible to the end).

So today, in remembrance of that evening with Hannukah Harry, and on this first night of Hannukah, I have discarded my formal iBC Approved Lincolnesque stovepipe top hat, and replaced it with the traditional Hannukah stovepipe instead (above).  

Happy Hannukah to all of you, and most especially to my Tribal readers and friends.

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As for the market, I think you can see what’s happened to the dollar, and consequently, our vindicated precious metal markets.   Notice also that things in the PM world have started to get a little tired and labored even as the dollar drops?  That’s why I’m not really adding to my precious metal hordes at this late hour, despite the temptation to do so.

In fact, I may even use this short burst to trim some of my laggards like IAG and GSS, and even sell some calls on my workhorses like SLW and ANV.   In the meantime, I make hay whilst the sun shines (and the dollar drops) on such long term holds as ENTR and TC.   I even added to TC ($12.80) and rare earth metal nut-stock AVARF ($3.69)today, as I recorded in The PPT.

These are all late game plays, and I will be trimming in the week ahead almost definitely.  There’s only so much we can expect out of the magnificent moves we’ve experienced in the last months, and I will squeeze what I can out of my bounty.  I will also endeavour, however,  not to get stupid and over-greedy.

Best to you all, Light Festivalists.

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