Naw, it’s not that bad, yet,  but Detroit is getting there.   Let’s see what a couple of years of a U.A.W. -driven Chrysler do to it.

But let’s put all that aside and talk about the invisibility of this gold bull, shall we?  I mean, my astute buddies over in the estimable PPT — that Powerful Profit Taj– (have you signed up yet??)… even those gentlemen seem to be walking around that trading room like zombies in the Night of the Living Dead, completely oblivious to the blooming precious metal bull that is erupting around them.  

 Why, just today, one of our estimable patrons sold our featured “pocket rocket” junior miner (see below) as if it were one of CA’s 30 second Viagra Vehicles.   Let me tell you, I was aghast!  Mortified!

But let me assure you, Jacksonians, this odd behaviour (sic) only inures to our collective benefit.   The longer the general public (and let me make clear that the PPT community is NOT the “General Public,” they are at least “English Beat” or barring that “Fine Young Cannibals”– ) remains ignorant of the stealth bull in the precious metal miners, the better it is for our accumulation purposes.   

For, my friends  (come, gather close so I may whisper it to you) — we shall be as the most miserable pinch penny miser on Ebenezer Scrooge’s third shift staff, sparingly sifting our gold and silver specie into dark musty lock boxes while others pass the punch with knowing glee and manly aplomb.  Let them have their japes and their ales and their merry tunes played upon a three stringed fiddle, for we shall act quietly here below, rebuilding the foundation of a hackneyed and eroding financial system for our children and their’s.   It is weary work, but God smiles upon us, and there shall be reward.

That said, I dont’ have much time to dwell on the blindness of the common man, so let’s take a quick look at what they’re missing. 

Remember this chart of the AMEX Gold Bugs Index from a week or so back?

Pretty nice looking chart, no?  Maybe some of you got long after looking at it?  Maybe some of you ran out and bought some gold stocks the next day, too.   (Heh) 

 Let’s see if that was the smart thing to do, from the perspective of a week later:

Well peel me naked and slather me with mornay sauce, whaddaya know?  A breakout just like we expected.   And look at all that free air we’ve got to go.   Hmmmm…  and what was  in that Index again?  Oh yeah, a lot of juicy big cap gold and silver stocks.   

Think maybe that break into the free zone will have some effect on our junior miners?   Heck, let’s see:

 

 This is your golden burrito for tomorrow and for the summer, my friends.  We shall share recipes for further tasty treats as time allows, but for now, know that outside the Jacksonian Core*, I am also purchasing and/or considering the purchase of the following precious metal mining hardies:  [[GG]], [[EGO]], [[AUY]], [[EXK]], [[NGD]], [[NXG]], [[NG]] and of course [[AGQ]].    

Keep in mind also, that there was a pretty bearish candle on the TLT today, boys and girls.  If that bond group and the Ten-Year Starting breaking down, it’ll likely be sayonora for the large part of this market.   Except maybe one part.

Caveat:  If you follow me into the purchase of any of the above named precious metal plays, your children will be stolen by Hobgoblins and traded to dwarves for shiny strips of tin foil and moldy bacon. 

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 ANDE — $22.20  (-2.42%)

GDX — $41.24 (+1.90%)

GLD — $93.85  (+1.73)

IAG – $10.23 (+0..69%) 

PAAS — $21.19 (+0.95%)

RGLD – $44.90 (+4.98%)

SLV — $14.34  (+1.69%)

SLW — $9.41  (-0.53%)

SSRI — $22.17  (+0.77%)

TBT — $52.43 (+4.96%)

TC — $8.46 (-7.44%)

TSO — $16.53 (-4.40%)

Daily Average: –0.25%

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UPDATE: I sold the calls on TBT again, here @ $53.58.   I think TBT is a bit parabolic here, and TLT looks like it’s ready to bounce.

See caveats above.

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Sometimes watching the Pelosi controlled Congress is like watching a late season filler on“The CW. “  You know the sort– base, corn comedy, most of it recycled from better stuff in the past, but mildly entertaining as filler for the beer and cheeze doodle half hour.   Unfortunately, this is real life, and the stuff  Congress is producing these days isn’t mindless entertainment for the subliterate masses, but toxic fiats that will kill off whatever fluttering hopes our economy might still retain after this recent hideous downturn.

Case in point, this latest howler from  FLORIDA Democrat Representative Alan Grayson  (word to my boys Chivas, TC and Cash n’ Guns, whatsupwitdat?).   Congressman Grayson claims that what we need to “stimulate the economy” again, this time with  mandatory paid vacations.   Read the whole article here.

Yeah, in this economy I could see strapped businesses being all for paying their employees to hit the beach, Rep. Grayson.   I can just hear the small business owner now:

“Mandatory vacation?   Hmmmm… let me think a second.   I tell ya what… why don’t you just take the rest of the year off?”  

You just earned my Asshat of the Month, Congressman. 

Following is an excerpt from the article (hat tip to The Politico): 

Congressman: We’re going to Disney By: Erika Lovley May 21, 2009 04:28 AM EST

Rep. Alan Grayson was standing in the middle of Disney World when it hit him: What Americans really need is a week of paid vacation.So on Thursday, the Florida Democrat will introduce the Paid Vacation Act — legislation that would be the first to make paid vacation time a requirement under federal law.The bill would require companies with more than 100 employees to offer a week of paid vacation for both full-time and part-time employees after they’ve put in a year on the job. Three years after the effective date of the law, those same companies would be required to provide two weeks of paid vacation, and companies with 50 or more employees would have to provide one week.The idea: More vacation will stimulate the economy through fewer sick days, better productivity and happier employees.“There’s a reason why Disney World is the happiest place on Earth: The people who go there are on vacation,” said Grayson, a freshman who counts Orlando as part of his home district. “Honestly, as much as I appreciate this job and as much as I enjoy it, the best days of my life are and always have been the days I’m on vacation.”According to the Center for Economic and Policy Research, 28 million Americans — or about a quarter of the work force — don’t get any paid vacation. The center says that a lack of vacation causes stress and workplace burnout and that those evil twins cost the economy more than $300 billion each year. One more if-you’re-reading-this-then-you’re-probably-not-on-vacation fact: The United States is dead last among 21 industrial countries when it comes to mandatory R&R. France currently requires employers to provide 30 days of paid leave. ____________________

Maybe next we can have full country truck strikes like they have in France, too, huh Congressman?   Asshat!

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Why now this crying, this cringing, this fear?

What ‘ports of market disaster come near?

Come,  there’s no trembling, no reason to hide.

For this day, Brave ‘Drew Jackson, the Dude, will abide.  

____________________

Have you good silver and gold in supply?

Use you green paper instead for your chai?

Best keep this warning in back of your mind,

Fed Notes like those will soon buff your behind!

_______________

Silver Wheaton, Pan American and S-S-R-I

With bright silver trumpets the thieves they descry!

And their fellows in golden and anthracite hue,

(Gold, Royal Gold, NRP name this crew)

Like friends made in foxholes– they will always stay true.

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And in our travels, let’s not forget “farmer’s friend:”

Stout “Mr. Anderson” forges an uprising trend.

And those thinking  now of their grandkiddies needs,

Must never disdain Sir Monsanto’s brave seeds.

_________________

“Molybdenum’s” fun just to say, if you ask me,

But “TC” is  the name of the stock that will task me. 

Especially when earl and gas spreads ‘come dear,

And Tesoro’s my ‘folios’ sole quit-claiming cheer.

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What’s left to us then, in the Jacksonian Core?

But to brandish the bane of that Great Federal Whore?

Yes Ben Bernake, I speak now to thee…

And like a cross to a vampire, hold high TBT!

___________________________

 ANDE — $22.75  (+0.57%)

GDX — $40.47 (+5.31%)

GLD — $92.25  (+1.42)

IAG – $10.16 (+2.83%) 

MON — $91.83 (+2.49)

 

NRP — $23.37 (+3.41%)

PAAS — $20.99 (+6.33%)

RGLD – $42.77 (+5.19%)

SLV — $14.10  (+0.86%)

SLW — $9.46  (+3.61%)

SSRI — $22.00  (+5.47%)

TBT — $49.95  (-2.14%)

TC — $9.14 (+1.56%)

TSO — $17.29 (+0.41%)

Daily Average:  +2.69 %

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One of these days I’ll shut the hell up about moving you into real money assets as quickly as your penny stock-spindling portfolio will allow.

But that day is not this day.   Not when the latest news clacking over the Jesse Livermore-era news ticker  in my offices reveals how Kommandant Barack is now going to nationalize GM — but “only temporarily.”   Turns out Dear Leader wants just enough time for Rahm Emmanual and Lanny Davis to wheel that aging aerophin-appended Caddy into his airplane hangar chop shop so to whack it up for distribution to loyal U.A.W. gummint cheese recipients.  

Tanks you veddy much, Kommandant, and dont’ forget to save the steering wheel, the white wall tires and the chrome ashtrays for the bond holders!    I said leave those white wall tires, you! 

So if the good fellahs in charge of everything  — and damn, they really seem like they are in charge of everything these days, don’t they? — are that cavalier about the big buck bondholders (some of whom were stupid enough to give them campaign money just months ago) , doesn’t that make you just a wee bit nervous about how well they are going to treat that other little U.S. bond obligation: The Federal Reserve Note?

So have fun, and be a silly piebald carnival piker if you’re so compelled.   By all means, stuff yourself into the clown car with all the other PPT nutjobs .  Throw some funny money at chip stocks that have been moribund since Bill Gates was still a virgin, if you feel that exercise will further your spiritual growth.   Go nuts. 

Hell, you’ll probably find me in that same Yugo  from time to time, playing Parcheesi with Ragin Cajun  whilst simultaneously sword fighting  The Chart Addict.    I’m human, after all, and enjoy an OTB rocket ride for greasy coin and bed bugged comfort as much as the next guy. 

Just don’t get too homey in that clown car, Homey.  Five will get you ten it will soon be remandered by the EPA for egregious CAFE standard violations, environmentally malevolant tailpipe emanations,  and toxic silly string abuse.    Then it’ll be medical experiments for the lot of us.

Well, not those who have been prudent about tendering some savings to the Jacksonian Core Holding Portfolio, whose hard money and hard asset plays will serve to keep some of us cosy with hot buttered rums and chedder toasties , whilst the OTB pikers scrape at our doors.  No luck for them I’m afraid.   They shall be turned out with a stern warning from Cuddy, our trusty footman.

But Cuddy welcomes the purchase of silver this day, as the Three Musketeers SSRI,  PAAS and  SLW scored again, with wins of 7.64%, 5.39% and 3.75%, respectively.   Do you get the feeling the market is trying to tell you something, Jacksonians?  

Beating even silver today was coveted (but not precious) metal molybdenum, as  JCHP member TC rang the bell with gains of 9.36% today.   All in all, the Portfolio only had two slight losses, and both in the red hot agricultural sector.  I expect MON (-0.69) and ANDE’s (-1.09)  small losses to be more like rests than ultimate pullbacks.   Still, this is why we’ve diversified even within this stable grouping, up 2.85% for the day.   Now quickly, onto our daily review:

ANDE — $22.62  (-1.09%)

GDX — $38.43 (+2.51%)

GLD — $90.96 (+0.66)

IAG – $9.88 (+1.23%) 

PAAS — $19.74 (+5.39%)

RGLD – $40.66 (+2.16%)

SLV — $13.98  (+2.95%)

SLW — $9.13  (+3.75%)

SSRI — $20.86  (+7.64%)

TBT — $51.04 (+1.07%)

TC — $9.00 (+9.36%)

TSO — $17.22 (+3.11%)

Daily Average:  +2.85 %

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Great news for those of us on the Jacksonian Sound Money Bus.    Mega –“Correctumundo” mortgage backed bond-shorting hedgie  John Paulson of Paulson & Co. has been piling into gold and gold miners in the first quarter of the year.   Propitious for us, no?

From the Bloomberg article:

May 15 (Bloomberg) — Paulson & Co., the hedge-fund firm run by billionaire John Paulson, increased its investment in gold and gold-mining shares in the first quarter, according to a regulatory filing.

As of the end of the first quarter, Paulson was the largest holder of SPDR Gold Trust [[GLD]], an investment fund that buys gold bullion. The New York-based firm owned 8.7 percent of the fund, valued at $2.8 billion as of March 31, according to a filing with the U.S. Securities and Exchange Commission.

That position was established as a hedge, the company said in a statement, because its funds have a share class that is denominated in gold rather than in dollars or euros.

Paulson bought or added to several gold companies in the quarter as well. He purchased a 15 percent stake in Market Vectors Gold Miners ETF  [[GDX]], a fund that mirrors the move in the Amex Gold Miners Index. That stake was worth $638 million at the end of the quarter.

Paulson also bought a 2.6 percent of Gold Fields Ltd. [[GFI]], becoming the fourth-largest holder of the Johannesburg-based gold miner.

The investment firm, which manages $26 billion, also bought an additional 2.4 million shares of Kinross Gold Corp  [[KGC]]. Paulson owned 4.4 percent of the Toronto-based gold producer and was its third-largest holder at the end of the quarter.

Paulson reported owning an 11.3 percent stake in AngloGold Ashanti Ltd. [[AU]], also based in Johannesburg, in March.

Rejoice Jacksonians, you are in the company of “the smartest guys in the room” since 2005.  

A hat tip to my friend and fellow Precious aficionado Gary Savage at The Smart Money Trader  for sending me the good news.

Ciao for now.

________________

Updated translation of the above for my hardened Gaelic friends:  Latha math dhut!

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