Step away from the rabbit…
__________________________________________________

Pay no attention to Lady Mahket with the butcha knife.  This is the chop part of the summer, but I’m not fooled.  I know what’s coming this year and so do you.

It’s an American election and it’s an important one.   The forces of “status quo” are going to do what they can to make sure it happens in as stable an economy as possible, despite the double barrells of ObamaCare and Dodd-Frank that have been administered to our collective guts.

Make no mistake, we’re going to be dealing with those two awful — and I mean awful — bills for the next decade.  My hope is that the perennially corrupt Congress will be rendered poleaxed for years to come just in unravelling them both.   That is truly our best possible outcome, given the unintended consequences that have popped up even on the very first day of the horrific bank “reform” bill’s signing.   I point you specifically to S&P and Moody’s suspending their ratings for fear of being sued into (perhaps righteous) ignonimity.

This is what you get when you allow a group of largely innumerate corrupt Democrats (and select boneheaded Republicans) access to the vital wheels of commerce.   Truly, they are en masse, a shit show.   Tell me again how elections don’t matter.

_____________________________

Surprisingly, I’m sure, you’ll find my answer is grabbing undervalued gold, of which we have recently come upon a trove.   First, the weekly $HUI is approaching oversold whilst bouncing off a crucual long term (34 week) moving average.   That’s been a healthy sign in the past:

Then, a specific recommendation, one of my favourite Jacksons is  a bargain.  Look at the weekly ANV chart for my take on the situation:

I am back home this evening, so I will try to catch up on some sleep and be here tomorrow for any queries.   Best to you all.

Comments »

_________________________

Of my favourite (sic) PM positions there are quite a few that are “almost there,” for an optimal buy, according to my weekly (ie, “long term”) reviews.

And then there are two that I like for tomorrow. They are PAAS and ANV. I will look to add tomorrow morning. There are a couple that may need one more day (and it may not even be a full day) like SLW and EGO. If you can get RGLD below $43, you are one blessed by Fortune.

As for “rippers” that will be taking advantage of any continuing up move in the regular markets, CREE and VECO, the LED twins, are taking off again. I expect POWR will be not very far behind them.

Attendez!

_________________________________

Comments »

 

_____________________

It’s called work.  I’m back home, and I’ve got tonnes of it.  I shall be out of the office again for three days this week and have all manner of personal and personnel issues to work through.   What’s worse, my right hand man is taking this week off (and deservedly so, as I’ve been working him like a Sherpa in tourist season).

I did have a chance to look through the charts tonight, however,  and I continue to believe two things.   One, this rally will continue, most likely after a slight pause that will either accompany or ensue from a dollar strengthening.   It won’t be much, but enough to continue working out it’s current oversold condition.  

This week would not be the week to add to the TNA (D’Rex Triple Russell), in other words.   It may be a decent week to continue looking at the PM recovery that firmed last week, however.   This is especially true if we’re given a bit of respite with the dollar strengthening.

As the daily AMEX Gold Bug ($HUI) chart show, that rebound off the oversold levels has occurred.  If the cycle continues as it has, we should see at least $490 again, and perhaps even new highs, depending on what the dollar decides.   Here’s the latest in a series:

I would continue to add to strong names that look like they’ve bottomed for this cycle, especially IAG, ANV and EGO in the golds, and SLW and PAAS in the silvers.   RGLD — the royalty banker — is also extremely attractive at these levels.

Feeling adventurous?  Gobble some EXK.   Or gobble some more, in that case.   I can’t tell you how much that stock reminds me of SLW, and even it’s ultimate parent WHT (now known as GG) in the bad old days of the early 2000’s.  I believe it will eventually provide similar rewards.

Someday, you will thank me for nagging you on all this.

Best to you all.

___________________________

Comments »

“Opiate Dreams” 

________________________________

Don’t bother listening to any of the bullshit on Bubblevision, or even stuff you read on the latest financial blah blahg.  Unless it’s The PPT, you are wasting your time.

  Rather, you should concentrate on foreign commodity names with strong earnings paths, because the crap dollar is what’s making this thing work right now, and that will be true right through late October, early November.

You may remember, we have an election coming up?

Here’s the deal on the dollar.  It’s hugely oversold right now and very ripe for a bounce.  I think it gets all the way to $85 and maybe more before collapsing again.  Here’s the projection:

If you are in gold and silver, gird your loins.  We could see as low as mid $1100’s on the gold front, as a result of the dollar’s return to $85.   “Que sera,” I says.  “Suck it up,” I says.   We’ve been down this road before and we certainly know it’s ultimate end.   (That’s “up” for you noobs). 

In the meantime, buy some PBR, or some CEDC on any pullbacks– you can’t go wrong betting on Brazilian oil or Polish folks taking to the bottle.  Both are top “furrin picks,” on top of my PM hordes.  Go get ’em.

On the PM horde front, and with regard to a dollar bounce, I may sell some calls.  I will certainly let you know.   Right now, I am sitting, eating samiches, counting coin.

And drinking fine wine and eggsellent ales, of course.   I am still on vacation, after all.

Best to you. 

______________________________

Comments »

[youtube:http://www.youtube.com/watch?v=BCAw5EYzen8 450 300]

(One of the kids’ favorites, and prescient)

_______________________

I’m on vacation and have enough trouble dealing with the deal shinola from the office, so I’ll make this brief.   That $HUI daily Amex Goldbug Index I’ve been featuring these last few days?  Well, it’s finally hit the trendline, and now it’s time to pack those shiny things on.

I’ll bring me sack, you bring the gold:

Could we have a couple of extra days consolidation?  Sure.  Play it by ear, but stay on your toes and be prepared.

____________________________

Comments »

[youtube: http://www.youtube.com/watch?v=ghz4_kikLkE 450 300]

_______________________

I’ve gone full weepin’ Patriotic American soft on this 4th of July evening, just about an hour before by second son achieves the age of Manhood (were we Hebraic, we’d throw a Bar Mitzvah.  Instead we’ll just wish for mitzvahs for him).   Yes, he’s a 4th of July baby, and full of vim and vinegar and heartbreak, just like America.   Right now, he’s set on the Air Force Academy and flying superfast jets.  

Next year, who knows?  Maybe the seedings of a bad Tom Cruise movie.

But as always, I have hope, and that hope is dependent upon the good people of America, whom I meet every day.   None more so than in the marvelous South, God bless it.   Wouldn’t it be ironic if they had to secede all over again, this time in the hopes of preserving of Lincoln’s Republic?   Stranger things have happened… I passed by Lincoln Memorial University on the way to the beach … and it was in Tennessee.  

I must tell you, however, that things feel more connected down here, less amorphous, and even less cynical.  Maybe it’s the ocean, or the hermit crabs.   More likely it’s the people. 

______________________

Enough philosophizing, I have to slay dragons.   A nameless droog from Fly’s blog (one who is not even a PPT denizen, curse his eyes), has remarked that we of the gold bug variation are in deep scheiss from this point onward.  

I have trouble accepting that prediciton and declare such droog, “asshattish,” in response.

Let’s look at our daily $HUI again, like we did two days back… and see if things have changed much:

I have trouble getting worried about this daily chart.   As you can see, we can hit $440 and still be okay, as we have not become totally oversold yet.   Still, that doji yesterday tells me we haven’t much to go here. 

Meanwhile, our nemesis, the Bernanke Dollar, broke some significant barriers on Friday:

That break of the consolidation zone doesn’t bode well for the dollar ($USD) going forward, even in this low RSI environment.   The weekly tells the better tale of broken hearts and broken trends…

New first target?  $82.oo.  That target should bode well for stocks too.   Be well, friends– and Happy 4th to you all.

_______________

Comments »