[youtube:http://www.youtube.com/watch?v=u9LcKcXpCDE&feature=related 450 300]

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Not to be overBEARing, but it looks like the US Banquing sector is going to have a rough time of it in the next couple of days.  Why not take advantage of that turmoil by setting aside some silver and gold for your posterity?

Besides, who wouldn’t want to kick “JP Morgue” in the teeth by buying silver, or so the old wives tell it?
I’m not going to tell you to do anything I wouldn’t do, so I’m not imploring you to go out and swamp your local numismatic dealer with pleas for hard bullion and coin.  I think this should be a part of your overall portfolio, but I think there are adequate substitutes still available under our current very liquid market system.   Unlike our fellows above, I don’t believe SLV and GLD are “false flag” operations designed to trick one out of one’s natural incentive to purchase physical.

I could be incredibly naive, but I trust the current rule of law enough to believe the audits of these depositories are valid.  Why?  Because the idea is too much of a moneymaker to allow it to be waylaid by a lack of credibility.  Both SLV’s iShares and State Street (GLD‘s parent) have too much invested in barriers to entry here to screw up a good thing with a fraudulent audit.   I like to use Occum’s Razor when analyzing these situations, and in this case, the easiest path to big money is to establish a creditable physical substitute.  Why screw w. that?

As you know, I also believe that another liquid path to trading gains is in the highly leveraged miners.  I don’t have to remind you that the most highly leveraged vehicles in that sector are the royalty financiers to those miners — namely RGLD and SLW of gold and silver concentration respectively.

After that there are many names, but if you want to act quickly, you are best throwing dough at GDX, GDXJ and SIL, which are the large cap gold, small cap gold and silver miner ETF’s, respectively.   I point you to these names because liquidity will be king here, and there will be volatility on top of volatility in the coming weeks.

Be ready to snatch opportunity with these vehicles and yes, by shorting the banks as opportunistically as possible through SKF, and even FAZ if you dare.  Remember to keep an extremely tight leash on both, however, for they will turn and snatch out your gizzard in the blink of an unsuspecting eye.

Best to you all.

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There is no Bernank, Only Zuul

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I don’t have a lot of time this morning, so I’m just going to feature the chart I put together last night.   As you know, I’m increasingly bearish here, and more so on the financial sector than any other, primarily because they are — like our internal deficit and debt problems — another can that has been kicked down the road.

Back in 2008, when the world was melting into a hardened polystyrene ball thanks to the implosion of the easy money real estate bubble, banks were allowed to escape (some just barely) thanks to the ministrations of the Fisc and the Fed via TARP and other more nefarious and clandestine sources.   Worse, Freddie Mac and Fannie Mae, the twin dogs of Zuul the Destroyer, were allowed to remain in their positions of power “for the good of the market.”

In other words, little was done in regard to true reform save “shoring up” for “the good of the industry and the economy.”    Bad mortage loans are still on many books, and real estate prices have been frozen in a glacial slide to the sea, rather than being allowed to correct in a more natural — if radical — manner.

Ironically, it is not those mortgage time bombs which will kill the banks in the immediate term, as the “propping up” methodologies of Congress, The POTUS and the Fed are actually hurting the taxpayer while assisting lame banks.  No, it will be the regulatory overkill administered in the fecal kludge which is Dodd-Frank Reform Bill, also known as “the second 2,000+ page bill that no one read before voting through.”

To give the Congresscritter some defense however, we can’t blame them for the criminal act of not reading the bill, since there were hundreds of pages of regulations YET TO BE WRITTEN found within its pages.  In my opinion, this is the far more egregious and unconstitutional sin.   In the case of signing a law that carried unknown legislative directives in it, Congress is yielding it’s power to an unelected alphabet soup of Federal financial bureaucracy.

Banks are just now beginning to “implement” some of the new regs.  You are already familiar with the loss of revenue due to debit card restrictions, but there are other capital and revenue limiting aspects which will also affect banks both large and small.

Ultimately, this will likely lead to another round of consolidation,which is what the cronies in Congress would like, as they loathe competition and it’s messy donation collection implications.   Until then, banks will be a mess, and I would steer well clear of them.   If you are adventurous like me, you might even take an interest in their downfall:

As you know, I added to my SKiFfles the other day, along with a position in TZA and more TBT (which remains a hair shirt).   What you don’t know, unless you are a member of The PPT was that I also loaded up on EXK, GDXJ and AG calls yesterday afternoon.

Yet another reason to look into a subscription for The PPT as soon as possible.  My best to you all.

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WTF?  When we come back in a big way, we’re supposed to win the whole damn thing.

I don’t want to talk about it.

Okay, I will say one thing:  I wish I didn’t like Big Paps as much as I do.  It’s those damn ESPN commercials.

(I apologize to our foreign readers, but every now and then we’re going to talk sports and politics here.)

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I edged more to the Dark Side this day.   I added to my TBT horde… what can I say?  It’s like my own personal hair shirt.  It helps me with personal penance and such.   Reminds me of back in the day, when I was buying gold at under $300 an ounce and my dear departed Dad was laughing at me at every family gathering and occasional phone call.  Sometimes stubbornness pays off, no?

I also added to my Skiffles (SKF) horde.   I am now at about 40% of my intended position in that security.   I am not even close to the point of no return.

Lastly, I went to the Emperor Palpatine himself and bought some TZA from him today.  At the close.  It was a lot.  I don’t even want to tell you about it.  The lightning scars will likely remain for some time.

I didn’t touch anything in silver and gold.  I’m waiting to see if we’re getting some “handles” here, on what some are calling “triple top breakdowns” and what I like to call “cups w. handles.”   GDX is looking extremely appetizing here, but I will wait for it to break above that $63 range… and then I’ll probably go with GDXJ for the leverage.

Stay on your toes, and God Bless.

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[youtube:http://www.youtube.com/watch?v=_qO66Rmi1Mw 450 300]

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I don’t know what’s going on, but it appears we’re about to be overrun by Viagra-popping leprechauns.   I’ve been buying some stuff back in drips and drabs but have been mostly waiting.  I added AUQ today and bought some more IPSU too. Both of those seem to be working well.  Meanwhile all the stuff I sold last week is doing aerobatics.  That’s annoying.

This is why we keep the core of course.  We don’t know what the bull is going to do… especially at these end stages.

I looked over all my charts tonight and there are quite a few looking like imminent breakouts.  These include AG, ANV, AUY, EXK and even — strangely — goofy old BAA.   Even GDX and GDXJ look pretty good, if you are into the ETF thing.   It’s our old friend the gold bug index $HUI that will provide the signal for me:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Most of those names in the chart above should break out with the $HUI index here, but I wouldn’t worry about having to pile in.   There should be pullbacks on all of them after the breakouts, so you should have ample opportunity, if you want to be cautious.

Besides the above, RGLD and NGD are rather stretched here, and I will be offloading some likely tomorrow on any $HUI break.

Best to you all, and watch out for midgets with orange hair, green vests and knotty chestnut shilelaghs.  Those fuggers will wield those beatin’ sticks.

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How many times have I told you? You never, ever sell your crappy juniors, no matter how crappily they’ve been performing and lying on the ground like so much offal shoveled out of the stomach from a slaughtered steer.

Case in point… crappy old Northgate Minerals — NXG for you in the ADHD crowd — was bought out by Aurico Minerals today (AUQ). I have had NXG since the days when I told you all to buy “the three N’s,” or NG, NGD and NXG. Guess which one was the laggard of those three? Sure, it was crappy old NXG. But guess what? Crappy, poor performing juniors get bought out in bull markets. It’s uncanny.

Note in this weekly chart how we’ve been consolidating for 20-something months?  Something was going to come out of this saucer… and in a bull market did you really think it was going to be a breakdown?  That would be “betting on the silly.”  Never a high percentage play:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

And here’s the bonus move..  AUQ, the acquiror got beagle-slapped today.  With two beagles, even.

I know you are not going to believe me, but I actually own none of this stock at this time.  Why, I am not sure, because when I’d read the news today I was chagrined to think that although I was “winning” 28% in my NXG position, I was also losing 18.5% in my corresponding AUQ position.  But then, saints preserve us (and they do), I found out that I had zero AUQ in my system.  I am going to have to research my notes to find out why I do not.  Perhaps I toe-dipped and had a stop or something.  Truly, I do not know.

That leads to another serendipity, however…. Not a long while ago I posted the below chart on AUQ with a proposed entry.  I give you that chart with no revisions from the last time I drew it up.    See anything interesting?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

My best to you all.

 

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[youtube:http://www.youtube.com/watch?v=h-S90Uch2as 450 300]

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I’ve come to speak with you again...

Because I see Bernank softly creeping

Left his seeds where I was sleeping

And the vision, that he planted in my brain

Still remains,

Echoed, in the sounds of Bernank…

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SKF — Skiffles filled the gap today on Uncle Warren’s egregious self promotional purchase of BAC preferreds this morning, and at the same time hit my buy stop in that gap.   I am still only at about 25% of my desired position in the Skiffles, and I will gnaw at my target steadily and stealthily, giving myself ample room and time to digest my purchases, like a fat gourmand at a Polish Pastry factory.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I fully expect Skiffles to head back to the $Two Hundo$ range again, and then some (recall, it saw the $400’s in the last bank conflagration).   I smell rancid bank death upon the breath of every visiting European tourist, and no amount of spearmint freshener will remediate it.  Not even good licorice.

Meanwhile, my 30% remaining gold positions all rocketed up today, in the midst of global downfall.   Go figure.  This is why we never sell the entire core, friends.

Not yet, at least.

My best to you all.

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