[youtube:http://www.youtube.com/watch?v=78CM3oItu1U 450 300]

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This bear ain’t over yet.   It’s in hibernation still, even here in late May.

here in early spring-summer.  One secular bull is still wide awake, however…

The [[XRA]] chart is an example of what some of the recovering juniors have been doing.  Check it:

I think this is only prelude.  The money machines are flowing.   Attend.

Good evening, all.

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From Your Biggest Fan!
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Bon soir, mon ami, et Bon Anniversaire! I hope this evening finds you croque’d to the gills on your favourite Bordeaux or Gamay Beaujolais, if you will.

For my part, I intend to eat multiple sandwiches tomorrow in your honour (sic), as it seems like we may have to withstand another drawdown if this afternoon’s last minute plummet and tonight’s weak futures review hold course.

On the good news front, [[GLD]] and [[SLV]] hung on and look to be bouncing with more relative strength than the rest of the market. Some previously beaten down junior minors looked like heroe as well, including [[XRA]], [[GSS]], [[NGD]], [[FRG]] and my favourite, [[ANV]].   Note how ANV kept that uptrend intact on the weekly:

THe daily is less pretty, but still hanging in there:

Keep your eye on the quality, and on that weekly chart.  If we break that line, we will likely see further consolidation.  Right now, both gold and silver are higher even as stock futures look weak.   At some point we will likely see complete separation in trading behaviour.

Best to you all, mes amis.

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I think some of the calls for gold’s downfall I’ve been seeing coming out of the Deflationista Community may be a mite premature.   As a matter of fact, I don’t think we’re seeing anything here more than a sharp pullback from an extended four week move.   Given that the move was a breakout, however, I think we’re headed for continued gains after it’s been consolidated.  

First, the weekly gold chart shows where we we’ve come since the breakout from the larger consolidation in October of 2009:

What we’ve been seeing for the majority of 2010 has been a consolidation of that late 2009 breakout… until we just recently (over the last four weeks) began to break out of that consolidation as well.   This last week was merely pullback from that break as well.  Note the daily:

Now we are oversold even from that brief pullback.  This is not to say there won’t be additional consolidation, but only that we should not confuse the ill health of the overall cyclical stock market bull with the far better condition of the continuing secular bull in gold.

Enjoy the day, I shall be about, but busy.

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Lost My Shirt, Danglin’ by a Thread… Still Got the Girl, For Now

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Just a little bit longer, now I think.

I told you I took advantage of the Bollinger Band crash trade  (thanks for teaching me this, Gary) today when I purchased some kookie SPY calls at 1082, yes?   Well, you can see how that worked out.  But then, these crash trades almost never work out right away, even though they seem to work out over 90% of the time, in the more intermediate-run.  

Point is,  I think we’re pretty close to a bounce,  where I will GTFO of those calls, and hopefully back into some nice dry gold lame suits.

The gold market seems to be holding up okay, and that Allied Nevada Gold Corp. [[ANV]] weekly chart I showed you yesterday is still holding that trend line, if only barely.   The $HUI index also looks  like it’s ready to finish it’s plunge here as well.   Maybe just a little bit more on the daily, here:

Oversold on the RSI, and the stochs are not far behind.   I think the touch and go will coincide with the rest of the market, maybe as early as tomorrow.  Here’s the weekly for perspective:

Still like the bigs, including Goldcorp Inc. (USA) [[GG]] , [[GDX]] and Royal Gold, Inc. [[RGLD]] here, but also Allied Nevada Gold Corp. [[ANV]] , Eldorado Gold Corporation (USA) [[EGO]] and IAMGOLD Corporation (USA) [[IAG]] .    On the silver, [[MVG]] seems to be holding up well.   [[EXK]] took a big dump, as the small caps will do, but I think it’s a bargain hunter opportunity.  Silver Wheaton Corp. (USA) [[SLW]] remains your best buy in the silver sector.

Step slowly, if at all, and I will see you all tomorrow, God willing.

PS — The PPT has been invaluable the past few days.   Fly has been on fire, and he’s even more available and open about his strategy there, away from the leeches.   It’d be well worth giving it a whirl for the summer, I tell you.

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Liberty – 1, Cynicism – 0
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Let’s make something clear… The Jacksonian tattoos (“tats”) are in, and Ive already signed two for posterity’s sake.

One is Silver Wheaton Corp. (USA) [[SLW]]   — big surprise, no?  Well, what is really going to surprise you is that shareholders of SLW will now have to submit to a plenary mandatory tattoo.   No fear ladies, there’s a very small and “chi-chi” version, only one centimeter in height, with  a sublimating daisy.  

It won’t hurt a bit I promise.

For the men, there’s the flaming skull motif, but that shouldn’t take more than 45 minutes.  Man up, this stock is worth it.

Addenda: Docteur Le Fly, le Monsieur, is calling for the end of the world.   Act appropriately.  Offer him Caymus Reserve  if he begins getting agitated.  That is all.

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We may get some pull back here in the golden markets, as — ironically — the dollar declines and the Euro strengthens. This reversal would be a sign of diminishing panic, and may be taken as a cue for traders to offload some “bunker assets” like gold and silver and lovely platinum, the precious platypus of heavy metals (much like the late Ronnie James Dio, R.I.P.).

But as I said to a faithful reader today — do not forsake the bull for the distress of  an uneven ride.  Bulls can be ornery and force one to pour over the Yeller Pages for the solace of a chiropractor, but they are in the end, powerful avenues to wealth for long term trend traders. Until much further notice, we are in a PM bull, and all eyes should be focused on the quality names.

As a result, I must fall back to Allied Nevada Gold Corp. [[ANV]] again, despite their recent capital raise that has their stock back on it’s (round) heels. Still the weekly path could be no clearer here for those still waiting to participate:

The daily is a little more hairy but describes some nice entries.   I like the 20-day here ($18.64) , but only if it holds like it has been since March.   It’ll be worth waiting for, I think.

On the silver side, I liked [[EXK]] ‘s action today, but I still love Silver Wheaton Corp. (USA) [[SLW]] for the long haul.   Here’s a look at the weekly chart and SLW’s quest for a more tolerant planet:

And here, again, the considerably uglier daily chart, which I believe is still under voice-command until further notice:

In short, I think opportunity will be knocking soon, in it’s best Vince Sham-Wow “Limited Tyme (sic)” pitch guise.   There will be others (for example Cree, Inc. [[CREE]] and Veeco Instruments Inc. [[VECO]]   who shined through today) but these are my two current foundation plays.  

I am leaving Royal Gold, Inc. [[RGLD]] out only because it’s a different royalty animal, but I’d get any of that that was available as well, should we dip on the PM side.

Stay strong, despite the mugfuls of black charnel soap bubbling in your Campbell Soup Kids’ cawfee bowl.

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