Mr. Limm Likes Cash!
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We’re getting another mini-rally in the greenback, thanks largely I believe to the perceived death of Obamacare and the attendant printing those increased expenditures would have brought with them.    Of course, there are trillions in deficits rolling down the pike with or without socialized medicine on the table, so I don’t expect this dollar bounce to be particularly long lived.

Let’s have a look at  our dollar proxy [[UUP]] to see what we might expect.   First the daily chart:

As you can see, we gapped up pretty significantly yesterday, but we’ve been turning up for over a week now, stochastically speaking.   I don’t think it’s a major coincidence that the dollar rebound coincided with the increasing possibility of the Dem’s losing their filibuster-proof Senate and the markets perhaps getting the notion that spending might slow.   That said, there’s already many wheels in motion on the spending front, and I think perhaps this move reflects more “hope” than reality for the currency markets.  

As you can see, on the dailies we’re running into some decent resistance at both the $23.20 mark and then at the 200-day EMA at $23.32.   We’ll have to see if those levels hold, but looking at the weekly chart, you might think they will not.  The coil on the various oscillators seem to indicate we’re not done with this rebound yet:

As you can see, my near term weekly target at the 34-week EMA ($23.21) coincides with my above daily targets.   However, if that level is breached, it looks like the next levels of serious resistance will be $23.75 or so — which is a mile in terms of overall market, and especially commodity reaction.   

So be prepared to gird your loins if the dollar continues to strengthen.   For my part, I will be laying in wait to accumulate back more of the silver and gold names I dis-horded in December.   I added more Silver Wheaton Corp. (USA) [[SLW]] under $16 yesterday, and began buying Fronteer Development Group Inc. (USA) [[FRG]] for the first time at $4.87.    I like how it pulled back to the breakout area from the mid $5.20’s, as I had hoped it would.  

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In the mean time, it’s seems the banks really like this dollar move, as our favourite (sic) bank index (that Jeremy won’t fix the price indicator for) [[BKX]] has been cheering on this dollar move like they use them for inventory or something.

What’s wacky is that President Obama is currently jaw-boning the hell out of the banks with a threatened “extra-tax” to “pay back the American people” (despite the American people being paid back very favorably for TARP by all but the worst Congressional satraps at Fannie, Freddie, GM and Chrysler who, needless to even mention, are not included in aforesaid punitive tax).  

Could it be that everyone is whispering to one another and saying “he’s bullshitting us?”   Maybe.   Could it also be that this just today new threat from Goldman’s Favourite President about “limiting the size of banks” is going to end up yet another barrier to entry which will — soo-prize! soo-prize! — end up benefitting the largest banks by limiting competition?

Would Congress really do something like that??  (Stifling laughter)

Well, whatever the cause, the banks are off to the races like a drunken Irishman on Derby Day (or “like Jake”) in the last two days, even in the teeth of an overall market downdraft.    Check out the Index That Shall not Be Displayed — $BKX :

“What the horse,” no?

And now look at a current Jake Favourite, as I’ve been mentioning on The PPT for these last few days, Southern Powerhouse BB&T Corporation [[BBT]] :

Looking good, no Cisco?  

Here’s the weekly for the longer term play:

You can see my ultimate target on this one is $38, and if things continue as they have been, I don’t think that will be a long wait.   For the gamblers out there’s Pacific Capital Bancorp [[PCBC]] which Ragin’ Hat Tipped me towards a couple of weeks back at $1.08.   It’s been berry berry good to me.  I also like Huntington Bancshares Incorporated [[HBAN]] for the potential buy-out and PNC Financial Services [[PNC]] and UBS AG (USA) [[UBS]] for “best survivors” status.     For large banks, I continue to think JPMorgan Chase & Co. [[JPM]] will end up on top.    

Best to you all.

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Y’all probably think I’m putting you on.

But I’m not.   I stand today in awe of the recuperative powers, the very resiliency of the American people.   Deep down, we are a people who almost universally subscribe to the simple concept of “leave me the fuck alone,” and let me just say, I love you all for it.

That Massachusetts, a state so reliably liberal Democrat that — in my lifetime –it has never been in play from the Republican side, could send such a resounding trumpet blast to those in the Washington D.C. power structure who would seek to usurp our liberty, well… it just has me kneeling in respect to our collective polity.

Thank you, Massachusetts.  Thank you for issuing the second “Shot heard ’round the world,” almost 235 years after the first.

God bless you all, and God bless the United States of America.

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Market talk— looks like the dollar is picking up steam tonight.  Get ready for a possible dip tomorrow.   Opportunities will abound.  Cree, Inc. [[CREE]] crushed it, and Veeco Instruments Inc. [[VECO]] will be rewarded too.  Best to you.

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Addendum: From the “This stuff never gets old department:”

[youtube:http://www.youtube.com/watch?v=c4aQCiRjvZY 450 300]

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What the Frig?
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I have to thank my Massachoo friend, E8, a.k.a. “Teahouse on the Tracks” for giving me this easy throwaway header.

But let that not distract from the niceness of this junior miner in the full Lawn Guylandesque sense of the term. Fronteer Development Group Inc. (USA) [[FRG]] is no doubt “BTFO” as we say around here, and the daily tells us so:

With that kind of lift off on volume like we had Friday, you can expect further action as follow through, but if I’m youse (sic), I’m gonna wait and let it flag some. Why? Well, the weekly should be an indication:

As you can see, there’s a secondary consolidation zone that we’ve just broken into. I think that means we’ll see a little bit more consoliadation here, and maybe even a pullback to the original breakout line at $4.85 or so.  

When we’ve dealt with this little dollar eruption in the next couple of days to a week, I think FRG will resume it’s heading back over the $5.60 mark, where it should have clear sailing well into the $8-9.00 range.

Keep in mind we should have some pullback on our favorite miners here, so keep your eyes open.  I will be looking to grab more Silver Wheaton Corp. (USA) [[SLW]] , [[EXK]] , Allied Nevada Gold Corp. [[ANV]] and Eldorado Gold Corporation (USA) [[EGO]] in a rigidly opportunistic fashion, like Frank Sinatra on Rookie Cocktail Waitress Night at the Sands.

[[PAL]] and [[PTM]] remain strong relative to gold and even silver.   These laggards need to catch up.

Keep in mind also that the 13-week EMA’s for Cree, Inc. [[CREE]] and Veeco Instruments Inc. [[VECO]] of which I spoke a few posts back, should be looming into view this week as well.   This is not an opportunity to ignore.

May all your bastards be glorious, and I hope to speak to you tomorrow sometime.

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Some muffins are still in the oven  (like Silver Wheaton Corp. (USA) [[SLW]] ) and some are cooling on the window sill [[EXK]] . One muffin, however, I believe is quite done and ready for munching, or blueberry extraction, if you’re into that.  That’s [[CDE]] .  Check out the retrace to the consolidation zone on the weekly:

It’s quite likely that [[CDE]] will fill that gap at $17.33 from back in early September, but that’s no reason to get greedy.  The dollar could crumble further any day now, including Monday.   I’m not going to wait for that last fifty cents, I’m going to start adding back my positions that I sold in the $23-24 range in December today.   Believe me, when this is all over, fifty cents is not going to be worth… fifty cents.

Platinum plays like [[PTM]] and [[PAL]] are holding up nicely today as well, although nearly everything needs to consolidate.   Keep in mind that the relative strength in the precious metal names has been stronger than the overall market.  Best.

 

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Did you know Maxwell’s Hammer of Beatle’s fame was an autopsy tool?

Do you remember what I said the other day about my second favourite (sic) dollar hedging silver pick [[EXK]] ?

I’ll be getting more tomorrow —

 

You see it using that 20-day EMA as a trampoline?

Want another?   Remember Silver Wheaton Corp. (USA) [[SLW]] ?

Why muck about with ball-peen hammers to the head, when there’s pretty silver that can do the job that much more stylishly?   You know this is my Stock of the Year pick at RC’s blog as well, no?  

 Nine year secular bull market, breaking out again.   Can you imagine the odds?

 

Also — Keep an eye on [[TBT]] here as well, folks.   It tested the breakout again today, and is looking good again.

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I’ve been abominably busy and there’s just no accounting for it. You’ll just have to put up with my ghostlike presence as I H.A.L.O.-parachute in with various recs from the troposphere.

The good news is, nothing is going on that hasn’t been anticipated for some time. You might be at the opera, you might be at the symphony, you might simply be out at the soda jerk’s enjoying a nice sasparilla with your best girl, Friday, but you haven’t missed a thing.

You’re right in the middle of it, so it’s time to lay down your knitting needles and Persian cat, and lookee here at these six charts of wonder. They are all in the weekly format, so you know there’s “no bullshit” gumming anything up, making you lose your nerve.

If I’m you, I’m relaxing right here. I’m not you, and I can’t relax due to my manic tendencies, but don’t feel bad, it keeps my weight down in the winter. I’m relaxing and I’m letting the market come to me. If I’m you, I mean. “Come to me” is code for “wait for the 13-week EMA touch” — especially on these balenes of beauty.

First two LED stocks. “WTF!?” you say to yourself.

WTF, indeud. Come on ovah heah and check out “Elvis” the King — Cree, Inc. [[CREE]] first. Behold!

And his LED brother, from Ghostbusters II — Veeco Instruments Inc. [[VECO]]– almost as purty !

Now those are some pretty formations, no?  Can you say “simpleton easy?”   Good, good.   Now look at my other friends.  My favorite goldie Allied Nevada Gold Corp. [[ANV]] is first:

And who could forget my enormous EGO—  Eldorado Gold Corporation (USA) [[EGO]] ?   Another weekly wonder:

One more golden gate to my heart, is the appropriately named IAMGOLD Corporation (USA) [[IAG]] :

And last but not least, the “Stock of the Year” –Silver Wheaton Corp. (USA) [[SLW]] —  a silver stallion that will outlast them all:

Repair more to your weekly charts for comfort, my droogs.   Remember “13-week EMA” on these high fliers, and let not the shadow of Zul darken your hearts.

Quanza.

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