I was beaten like a silver gong today, and Mr. Market is telling me in not so polite terms that I’d better get the hood up on the convertible before he starts raining golf ball sized hail on my head.
I’ve been busy here so I don’t have a ton of time for comment, but suffice it to say, until further notice, we are in bunker mode. That means I will be hedging the JCHP with double and treble ETF’s in order to make up for any downward motion in the silver and gold plays. As well, I may either cut back severely, or totally eliminate certain positions.
Natural Resource Partners LP [[NRP]] is an example. I am keeping it right now, even though it is down more than 10% since inception because it carries a high dividend yield (almost 9% at inception, higher now). However, I may get rid of it if it dumps below $20. I may also take this opportunity to lard on some [[SMN]] or other appropriate short shields. I will definitely add [[TZA]] — the triple short small cap — at the open for instance, since I bot some just before the close today for my own portfolio ($24.92)
I think we’ll probably get a bit of a bounce tomorrow, and I’ll be taking that opportunity to move into cash and some hedges, as I don’t think this is over. If it’s just a short term blip, so be it. We can scale back in when the ground is safer. In the meantime, protecting principal (and gains) will be the paramount idea.
I’ll update the JCHP later tonight.
Update: One thing to keep in mind is that the US Gubb’mint needs to sell over $100 billion in bonds this week. You think there might be a reason to jack the price of Treasuries [[TLT]] for such selling purposes? Remember, Goldman sells these things for them.
Update: Here’s yesterday’s ugly Jacksonians. I just picked up some TZA @ 24.85 (yes, lower than yesterday’s entry) for insurance:
Name | 19-Jun | 22-Jun | % Change | Comments | |
ANDE | $ 28.61 | $ 28.45 | -0.56% | Spent most of the session up | |
EGO | 8.20 | 7.65 | -6.71% | Broke $8 support, next at $7.19 | |
GDX | 38.39 | 35.74 | -6.90% | Broke TL barely, needs to get back to 36.75 | |
GLD | 91.90 | 90.54 | -1.48% | Also broke TL, needs to see over $91.50 | |
IAG | 9.36 | 9.04 | -3.42% | Also beneath TL, needs $9.35 | |
MON | 80.73 | 78.12 | -3.23% | Still on trend, needs to stay over $78. | |
NRP | 21.99 | 20.60 | -6.32% | Sell below $20.00 | |
PAAS | 18.93 | 18.02 | -4.81% | Least banged up silver today, still above TL | |
RGLD | 43.08 | 41.12 | -4.55% | Still above TL, 38.2% fib @ $39.50 | |
SLV | 13.99 | 13.54 | -3.22% | Still above TL til $12.87 | |
SLW | 8.63 | 7.97 | -7.65% | Right on long term TL today, gotta bounce here. | |
SSRI | 18.92 | 17.56 | -7.19% | Still on long term TL til 16.50, could get there. | |
TBT | 54.34 | 53.28 | -1.95% | Could easily get back to 49.25 before bounce. | |
TC | 10.54 | 9.40 | -10.82% | Sell all on a break of $9.25, 1/2 on gap fill 10.38 | |
TCK | 16.54 | 14.57 | -11.91% | Sell below 14.35, long term TL @ $12.50 | |
AVG (daily) | -5.38% | ||||
AVG (monthly) | -12.15% | ||||
AVG (inception) | 9.39% | ||||
Cash ( 000’s) | $ 4.61 |
UPDATE: The following astounding link should be clicked by all. Keep in mind that The POTUS just asked that the Fed be put in charge of MORE of our financial system, and then watch this.
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