What’s not to like when Fly and Henry Agree on Lithium?
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I actually worked this chart up on Sunday, but I didn’t think Sociedad Quimica y Minera (ADR) [[SQM]] was quite ready at the time.    Though not for the SQeaMish, this name is near-Jacksonian in character and ingredient (click for profile).

Being from South America, the land of “What Can I Nationalize Today?” is certainly a negative for SQM, but we can take some comfort in this company being located in the relatively free market country of Chile — Uncle Miltie’s playground, may his blessed soul rest with the angels. 

I like the play — and consider it quasi-Jacksonian — because it mingles the best of the agricultural boom aspects of my Jacksonian thesis (note: The Andersons, Inc. [[ANDE]] remains my top performer, up over 114% since May 1st) and the latest crazy Fly, crazy Henry Foo’ and even crazy Ozzy J “lithium insanity” (no pun intended, though surely all three require ample lithium dosages for a “stable day.”)

I also like the chart.   I cautioned Fly last week in The PPT (why haven’t you signed up yet?) that SQM’s last peak high on 9/18 at $40.44 was right at itslong-term  61.8% retrace (which falls right around $40), and that it was likely we’d see a little more of a pullback than we had before it breaks back above that important fibonacci line.

Well, I think we got that on Thursday and Friday of last week with the dip down to $37.86, and then one more time this morning with a final scare-off to $38.59 .    The cautious among you may wish to wait for the final break above $40 for the “all clear” to enter here.

Certainly Prudence would approve.

I’m getting in right now.   Slange (sic)

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Quick explanation on the chart — the vertical lines are aligned with the same place on the RSI that the chart was as of last Friday.  As you can see, in some instances it continued down and in others it rebounded.  I thought it would rebound given similarities to other points on the chart, and it looks like it’s doing just that as of today. 

Alert:  Buy all Jacksons on the dollar break of [[UUP]] — below $22.79.  I like [[EXK]] , [[BAA]] and Allied Nevada Gold Corp. [[ANV]] again today.   Silvers should run too.   Slange (sic).

 

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“Buy! Buy! Buy!  Booooo-yaaahh!”

I’m going to give you a night off from the precious metal plays, since you shouldn’t be squeezing your head like an overipened melon about those picks every day anyway.  Relax and have a clove cigarette or something.

Stop obsessing about [[EXK]] and come look at what I have over here, damnit.    And Capricorn One, you petty thieving third tier somnabatch… don’t think I don’t see you over there in the corner taking notes.   You’d better at least change the title of the post on this one … goat faced fugger.

First up, a stock I got “amped to” by none other than Johnny C. Lee, back in the bad old days of early summer, when it was in the sixes and he was “renting” it for the day.   I liked his  [[CAR]] so much I just kept it, and it’s been blowing Benjamins at my feet ever since.  

I think you can see from this daily chart, why I think that after today’s action, it’s getting ready to start running those printing press again like The PPT during earnings season:

 

“Treat #2”  (or is this one a trick?  I can never remember) is an old favourite (sic) of mine from down Bluegrass Horse Studdin’ Way — Lexington, Kentucky.   Rather than pay rednecks to stand around and watch horse-on-horse action, however, this enterprise NGAS Resources, Inc. [[NGAS]] pays Bill Daugherty and company to punch gas holes instead.

You may recall this company’s egregious summer financing, which had many a PPT and piker player crying in his suds.    Well, recent volume buys have signaled — along with today’s nice 7%+ move — that it’s getting close to “go time” for this puppy as well.   Feel free to eyeball my latest graphics efforts on aforesaid Two Buck Chuck —    $2.50 is where I’m buying, maybe as soon as tomorrow:

Go forth, be fruitful, and multiply thy Benjamins.    I may throw one more treat out intraday tomorrow…. or maybe just to The PPT… we’ll see.   Beazer Homes USA, Inc. [[BZH]] looks ready to get going as well.

My best to you, even to the pikers.

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[youtube:http://www.youtube.com/watch?v=8Qtgm5g5Gyo 450 300]

Fly Takes on the Mustachio’d Bearshitters via Liberal Use of The PPT Hammer

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Here’s the full vid, if you’re interested.   I tried to isolate the part where Bugs sells the King’s garden property to the Sheriff of Nottingham (pictured above), but couldn’t find that select clip. 

 I thought the Sherriff’s self-head hammering in that scene (about 4:00 or so in the full ‘toon) a particularly apt metaphor for the ursine intransigients, but I guess the scepter-malleting depicted above will have to serve as an able “second best.”  

He is making the Sheriff a “KNIGHT” after all, right?

Too unsubtle?  Pity. 

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More of the same wanton winning today, even as my activities in The PPT were relegated mostly to assembling one single ginormous call position in [[GDX]] .  

 I sought “deep-in-the-money” leverage here, purchasing the December 39’s and 40’s at $8.60 and $7.90 respectively.   I had to buy both at the ask, which I don’t like to do, usually.  However, I was unsuccessful with limit orders at lower prices, and did not want to wait another day, as I think GDX could launch again at any time.

I expect to hold these calls til near Turkey-Day, for what it’s worth.   I may shave some exposure if we have a large run-up earlier than I expect.

In other news, the “Killer Bee’s”  [[BAA]] and Beazer Homes USA, Inc. [[BZH]] continued to mint coin for myself and my compatriots in the bullion vaults of The PPT.      That’s just one letter of the alphabet in double digits…  I’ve another 25 in here ready to roll.

It’s been that kind of day in The PPT Wintocracy.  

 I continue to like IAMGOLD Corporation (USA) [[IAG]] , [[CDE]] and Silver Wheaton Corp. (USA) [[SLW]] for accumulation purposes here.

Tomorrow, I look at an interesting metal play starting with “A” — I think you’ll be intrigued.  

Until then, Slange (sic), and out.

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Did you take some action today? Were you nimble? Were you quick?

I’ll have you know today I, “Jack,” jumped many a candlestick, whilst running away from ex-Nazi dentists with maddeningly persistent, OSHA-oriented questions.

Did you?

I’m not going to mess around posting a bunch of charts, mostly as so many of them look the same with their one day reversal candles… but I’m going to say it here and leave it up to challenge. Today was a gift from the PM stock gods.

You see, today was the day “they” — the Operators — were going to shake the tree on all the trepeditious weak hands in the PM sector.  They were going to drive gold below $1,000 and then knock you over the head with a sockful of nickles to see how many positions you’d drop onto the ground for them to Hoover up.

And they were successful — to a point.  They were able to force gold below the $1k surface for a little more than two hours of trading this morning (NYSE hours) before, like a dirty beach ball in the Coney Island medical wash, it broke out above the waves again and headed higher. As I type (11:15 pm), POG is almost $1008 again, and POS is approaching $17. I’m betting we see more recovery tomorrow.

The same thing that happened to physical gold and silver happened across the precious metal mining sector. Very rare was the singular breakout like our previously recommended Corriente Resources Inc. [[ETQ]] , “the Latina Beauty.”

No, most of our names offered instead outstanding opportunities to buy at deep discounts today.  Just pull the chart on any Jacksonian or other oft-mentioned PM name and note the reversal dojis as they roared to recovery, some all the way to the green.

And yes I took advantage, though I announced only to The PPT today, as I mentioned I would. And no, I don’t mean to torture you like Sir Laurence Olivier with a rusty dental drill, but… well…

You see, I think we are in trading this Fall in very opportune times, and I want to make sure the people kind enough to keep this worthy site going “in custom” as it were, are rewarded with first dibs on choice observations.

So please don’t think me unkind, but rather, think of me as merely giving you yet another incentive– by way of whirring dental drill– to at least take a peek at The PPT…  for your own “toothsome good,” as it were.

Here’s an (edited) log of my announcements on The PPT‘s famed User Notes today:

10:30 & 11:15 am— Bot 15k shares [[CVM]] @ 1.90 (blended)

11:03 am— Bot 40 Silver Wheaton Corp. (USA) [[SLW]] December $9 strike calls @3.60, (SLW @ $12.12)

11:45 am — Bot 1k more [[PAAS]] @ $22.84

11:51 am — announced “POG back over $1,000 oz. again, if you blinked you missed it.”

12:02 pm — announced a potential new flag break formation on Beazer Homes USA, Inc. [[BZH]] .

1:07 pm — Bot another 2k of BZH @ $5.75 (limit order placed at 12:10 filled)

1:22 pm — Took advantage of the huge discount in IAMGOLD Corporation (USA) [[IAG]] and added another 2k @ $13.66 right as it bounced off the upward sloping trendline.

1:36 pm — pointed out the (then 12%) breakout in Corriente Resources Inc. [[ETQ]] .

In addition, after the above purchases, I also gave a “preview” on three potential plays that I think are setting up, maybe as soon as tomorrow. And remember, this is the kind of thing that is happening every day on The PPT, and not just with my picks, but with trades, observations and analyses of every serious trader involved on these pages and elsewhere.

As a result, we’ve become near-Homeric in our collective winship. Grab an oar if you like, we’re off to Troy again tomorrow.

Slange (sic).

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Makeup bonus:  Just to prove I’m not an over-secretive ogre, I’ll divulge a non-PM tasty I’ve been eyeing.  Take a look at ANADIGICS, Inc. [[ANAD]] on a pullback to $4.75-.80 here.  I think it’s going places. Best to you.

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I just grabbed back all the [[EXK]] I sold yesterday for over $3.21 at between $2.88 and 2.90.  Let me tell you why:

Because it’s mid-September and it’s time to get your goat on.  

Listen, the next couple of months could be as dangerous as skipping around on the lower shelf of the Appenines right outside Roma.  So barring the requisition of a  bunch of high dollar mountain climbing equipment including Maui Jim Sunglasses and flashy ankle boots, you are going to have to harness your inner goat, ovah heah.

You see, EXK jacked almost 100% in three weeks.   As an owner, Mr. Goat, you just climbed Mt. Everest, congratulations.   Here’s the problem — you’re still on Mt. Everest.   What’s more, there are some nasty rockslides ocurring around you.

So be nimble, like a sure-footed billy goat, and be sensible, like Monsieur Le Fly.   Take some profits off the table on these 100% movers.   Sell some calls when things get extended.   Don’t be a pig.

Be a goat.

Last, if you haven’t yet signed up with The PPT, you may just be crazy.   Many many sure footed goats live there (and no trolls, imagine that?) that can help you skirt from Alp to Alp, twirling around like Julie Andrews in a mountaintop meadow, whilst wearing Lederhosen and blowing the Ricola horn.

 

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After all, this is why we are socking away wins for a rainy day:

So yeah, the Jacksons (up a collective 36.5% since May 1st as of today’s close) may be doing egregious “loaves and fishes” type miracles with your cash pile, but let’s keep our nose to the grindstone, as you’ll need that dough when a ham on rye, hold the mustard sets you back $36.25.

Remember we are all about dollar destruction here.   Take a look at that chart and ask yourself if the Congress and the Fed are going to support that kind of spending (not to mention the huge Medicare and Soc Sec liabilities) via the good old fashioned “belt tightening” of increased taxation and spending cuts?  

As they say in Texas, “No, hail no.”

So let’s be opportunistic and remember that there will be pullbacks in these metals, but that we need to manage our positions to maximize cash flow in this critical period.   For me that means selling calls at critical junctures, and even trimming the sails to raise cash from time to time.  If I’m reading things right, however, you are in for a bumpy, but enjoyable continuing ride here.

Keep in mind Rubicon Minerals Corp. (USA) [[RBY]] has broken to new highs yet again, and Allied Nevada Gold Corp. [[ANV]] remains a favourite pick.   I may take some leverage (ie, bot calls) off the table in Silver Wheaton Corp. (USA) [[SLW]] soon, as it’s run faster than it’s brother silvers by far, with over 66.8% returns since May 1st inception, while [[PAAS]] and Silver Standard Resources Inc. (USA) [[SSRI]] are only at 43.5% and 29.2% respectively.   I think SSRI especially will gain from here. 

On the junior level [[EXK]] continues to be a junior trooper, and I continue with a leveraged position in [[CDE]] as well, because of the acute lack of overhead.  I also own Hecla Mining Company [[HL]]

On the gold side, IAMGOLD Corporation (USA) [[IAG]] remains the monster of the pack, with 85.8% returns since inception, but I’d look for a pullback here before jumping in.   Eldorado Gold Corporation (USA) [[EGO]] and Allied Nevada Gold Corp. [[ANV]] still look like they can pack punch here, however, so keep an eye out on them and yesterday’s mention Gold Fields Limited (ADR) [[GFI]] .  

 Last, non-PM Monsanto Company [[MON]] grabbed back some ground today but continues to be undervalue in the Jacksonian sphere.   Still a “grandkids pick.”   The Andersons, Inc. [[ANDE]] –up over 106.5%  since Jackson inception — is still our leader, and looking for $39 as it’s next “achievment.”

I’ll have more tomorrow, but let’s shut it down with a veritable classic from my youth.   Share it with a favored son of daughter, and it’s likely they’ll never forget it:

  [youtube:http://www.youtube.com/watch?v=P7tQVEEPWv0 450 300]

Slange.

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