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What a lucky bunch you are.

No, seriously, you are in for some fun tomorrow, especially if you are a PM “noob,” because we may get a gold and silver sale tomorrow that would put even a semi-retarded Wal-Mart jewelry clerk to shame.

It looks like we’re getting one last final swaller before we do our annual Santa run, and this one may turn out to be fun for short and long term trader’s alike.

I’m not going to show you last night’s price of gold chart again (just click one back to see it), but suffice it to say we are “right on” the 34-week EMA, just as I’d expected.   Seems we made the entire move in one day.   And on relatively light volume.   What does that tell you?  Keep in mind we’ve got COMEX options expiring today as well. 

I announced in The PPT and later on my blog that I had taken the opportunity to grab some more IAG and SLW, as both of those looked ripe for a bounce, even more so than my planned purchase of ANV.  Looking again at the longer term charts, I see that SLW could drop another dollar lower than my $18.09 purchase price, and if it does, you should take advantage.

I think ANV will finally be ripe for plucking tomorrow, maybe as early as the open.   The daily picture tells the tale here:

Looks scary, but in fact, the 200-day EMAhas been a beautiful place to pick up discounted goods in this secular precious metal bull, and you are lucky to see it once again, despite the seemingly perilous status of the situation.   Look again at that three month move from February to May, and keep in mind we are coming to Santa-season sooner than you think. 

Ho ho ho!

My other “favorite” that is looking awfully tempting for tomorrow is my massive EGO.   This time, the weekly has the better view:

 If you can catch this one anywhere near $14.90 (the 34-week EMA) then you are golden, pony boy.

I like SLW and PAAS as your silvers on any kind of gold bounce, but so does Barron’s, so for safety, I’d look at EXK here too. 

Best to you all, and happy hunting tomorrow, you lucky dawgs.

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Addendum:  For  you political types… this is one of the best articles I’ve read all year on the historical and political analysis of our currently “evolved” system of government.   I think Purdy and probably M. Le Docteur would both love it…  Angelo M. Codevilla’s The American Ruling Class, and the Perils of Revolution.   Excellent stuff, really.

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[youtube:http://www.youtube.com/watch?v=FRWU2DysF30 450 300]

Showing this to the kids next time they don’t want to practice piano….

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I spoke to some of you on Fly’s blog the other day about how I’d had a conversation with a couple of traders whom I respect greatly, and whose collective net worths range into the billions.  They were/are considering moving their capital to some less confiscatory climes if the current regimes remain in power past November of 2010.   They said this bluntly and with little rancor.   The conversation, in fact, was for the most part calm and matter-of-fact.  A sense of resignation permeated the meeting.

“It is what it is” seemed the pre-dominant theme.

Many times I’ve said on this site that “capital is mobile.”   That phrase should be embossed in gold bas relief a top both Congressional Speaker’s podiums in both the House and Senate.   It’s a phrase all governments should take to heart, but ours most specifically because our success today as a global Colossus (dare I say “Atlas?” lol!) is due to the flight of both specie and intellectual capital to our shores.

What I mean is that governments unfriendly to capital, be they in Cuba, the Soviet Union, France, and for a time (ironically) Mainland China and India forced intellectual and physical capital off-shore into the arms of nations more friendly to its use and protection.   The most hallowed place, up until recently, was in our own  U.S.capital markets system.

Forget about “your tired and poor” — America became great on the backs of your innovative and rich, Asia and Europe.   Sorry, that’s just the way it’s been.   Thank our Constitution and integral respect for property rights for those wins.

The question each of us must ask, however, is can that win streak continue?  If the hard fought aspects of U.S. exceptionalism (not my term, but there it is) are gradually worn away, and we end up looking like just another 50% government oriented European state, will entrepreneurs, innovators and capital investors continue to be interested in our ability to create wealth?  Will that ability even remain a core competency in the 21st century?

Hard questions.   In the mean time, U.S. Congressmen dumber than even their mulish appearance would convey, are calling for the “freeing” of the Chinese currency.   This would be a disastrous turn of events, not just for us but for the Chinese themselves, who depend upon the artificial cheapness of their goods to feed the American consumer maw and thereby continue their growth in productivity and efficiency.   Break that equilibrium and the Chinese will suffer — temporarily… as they move from a Third to a First World country and begin becoming emboldened consumers in their own right.   Such an evolution for China — like post-war Japan’s — is all but inevitable.

As a result, the U.S. will be shorn not only of its cheap goods, but of its single most important financier — the Chinese Central Bank, who has been sterilizing our crap paper for years.   Soon that subsidization will end, and we will have to face the reality of our over-spending.   That day of reckoning will come all the sooner if we force the Chinese hand, as so many critically stupid Congressmen are now attempting to do.

The play this week (surprise, surprise) is the precious.   I bought another 2k of AGQ on Friday, and tried to add 2k more SLW, but I was busy that day and only got to call in the trade to my broker.   Unfortunately, I noted this evening there is no additional SLW in my account, so I will have to administer 40 lashes tomorrow morning to aforesaid sloth-like attendant.    My kingdom for competence!

Sigh.  

All the silvers and golds look good right now, but none more than my favourite (sic) gold ANV, which seems to be going to the stratos.    I continue to like EGO and also RGLD, especially after the recent Goldman capital raise.

Best to you all, and watch out for those rem-nem-bee’s.   They sting when aggravated.

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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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[youtube:http://www.youtube.com/watch?v=zf6s7HTmtyM 450 300] __________________________________
If it’s a schtick, so what?  If it’s an act, who cares? He’s saying what ought to be said.

It’s absolutely a perfect metaphor for our political process that these asshats think they can go after the big banks and securities players while leaving the hot steaming mess of Fannie Mae [[FNM]] and Freddie Mac [[FRE]] for another day and another half trillion dollar bailout.

It has to end, and thank the Lord for big mouths like Rick Santelli who know the game and will call them on it.

As for other heroes….

Allied Nevada Gold Corp. [[ANV]]   Boom!

IAMGOLD Corporation (USA) [[IAG]] Bam!

Golden Star Resources Ltd. (USA) [[GSS]] Shhhhher-pop!

Eldorado Gold Corporation (USA) [[EGO]] — Shazzam!

[[EXK]]   Ker-Pow!

And this is less than half the list…   

Where to watch for a step off?  Easy, I think:

Enjoy, but remain vigilant.  Best to you all.

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Okay, one more… my baby — Silver Wheaton Corp. (USA) [[SLW]]

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[youtube:http://www.youtube.com/watch?v=4TTC6FJphWA 450 300]

“Freedom,”  do you hear, it?

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The above well wishes may be outdated by the time of this posting, as there is a rumour (sic) that Representative Bart Stupak, one of the last principled Democrats, has succumbed to the bribe disease that has overtaken nearly every member of Congress, may Allah throw them all out on their patoots this coming November.

If that’s so, we’re cooked for long term, as the inevitable government imposed rationing takes hold, and destroys a vital part of our economy in the process.  Say goodbye to the solid, high quality healthcare you’ve enjoyed for so long, it’s about to be controlled by Health and Human Services.

And don’t get me wrong, there’s nothing wrong with rationing — it’s a natural economic process that occurs in all supply and demand-based transactions.   It happens in our interaction with health care service providers the same way it occurs in our other daily decisions.   Problem is, at this point in history the more natural flow of free market supply and demand that reflects efficient rationing in pricing has already been cast askew by government intervention in our health care system.  This has resulted in a limiting of service supply that has greatly overtaxed our provider community.

Unfortunately, the new top down mandates of Obamacare will only exacerbate that situation, as additional “insurance” recipients are added to the rolls, with no attendant increase in service providers or pricing (at least according to the Obamacare mandates).    This will result in exit by providers and service workers, a natural result of price fixing that we’ve seen exhibited in every situation where it’s been attemped.  

If you take anything away from this piece, remember that “price fixing leads to shortages,”  as sure as extended drought leads to famine.   (Banque coin on it via The PPT.)

Trying to talk around such natural phenomenon is like arguing with a rock falling to the ground that he is being “bourgeoise” and “oppressive.”    In fact, it’s been a long time curiousity of mine why people would believe that natural economic processes that have been proven time and again over our recorded history, can somehow be evaded by the “right amount of state conviction.”   Marxism did not work for lack of trying, after all.

For those of you who understand rational market actions, there is some faint hope, however.

First, this bill may fall apart under the weight of judicial scrutiny, given the myriad bribes and singular giveaways that have been stuffed into it.   Second, the way this bill is looking to be semi-passed, via the “deeming” process Representative Slaughter has propose, may very well not stand Constitutional challenge.

Third, and probably most likely, the passing of this bill may well usher in a sea-change away from our current Big Government political trends.  Enough economically sapped and pissed off citizens have awoken to this hijacking of our Constitutional precepts that we may see a large scale revamping of Congress that renders President Obama the lamest of ducks, sends the far left Madame Pelosi back to the rear bench, and Harry Reid home for extended fishing in Lake Tahoe (with Fredo?). 

If that in fact does happens, I look for a renaissance in the markets, much like we experienced after the 1994 elections, when Gingrich’s Revolution stopped Bill (and Hillary’s) Clinton’s earlier attempt to Alinsky-ize the country toward a permanently government-first economy.     I think we may also see a desparate Dem Congress, seeing the writing on the wall, try to break the massive groundswell against them by throwing bon bons to the economy and markets.   This could set up for an explosive combination come this summer.

Remember that markets are forward rationalizing, however, and that Barack Obama (thus far) has shown himself to be less pliant than Bill Clinton.   It’s very possible the best we can hope for, until 2012, is gridlock.

Given what we’ve withstood in the last year, that may very well be a balm. 

Best to you all, and remember what Brooklyn’s finest said:

 
Update:  “Deem and Pass Option May be Dead” according to WaPo report… I don’t take comfort in this however, if it’s coming from the Dems, as it likely means they have Stupak, and the other nays corralled and can pass it with a regular vote.   I cannot wait to see the chicanery results (ie, “the bribes”) that got this thing done…

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Second Update:   A real hope for the future, Representative Paul Ryan (R, WI), responding to the demagogues:

[youtube:http://www.youtube.com/watch?v=m4qy3bGYii8 450 300]

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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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