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Wholesale prices were up almost a full percent in January, I cannot imagine why.

Despite the dollar being somewhat oddly surge-ish this morning, gold and silver are holding strong.   We are in the right place, here.  I loaded almost to the brim yesterday, in AGQ, ANV, SLW, EXK, PAAS, SIL, and AAU, as reported yesterday in The PPT.

Funeral is this morning, so I will try to ring in later today.   Carry on.

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Action was in the A’s today, as in Ass-kicking Agriculturals and AG and AU stocks. If you were playing close attention to my Prometheus Unbound post of last Wednesday, you are a happy dog tonight. Mentioned almost at the very bottom of that post is AAU, which I noted looked coiled for a takeoff.   That prophesy was fulfilled today…

Note the blast off at the concentration of both the 20- and 50-day EMA’s?  Now look at the last time those two lines came together to form a launch platform, back in August.   Auspicious, no?  But the best is yet to come, and I think it’s soon, as the weekly reveals:

Note that AAU has a bit of work to do to break final resistance.   We may not make it there on this first run, so you flibberty gibbet traders may want to take that first line as an exit point if you feel we’re not breaking through.   There could be a bit of consolidation at the $5 mark as there is with many of these precious metal miners.   I’ll probably use that moment to accumulate.

Does that strategy sound familiar?   It should, as it’s exactly the one I employed in tearing off great hanks of EXK for my later consumption and nourishment.  These smaller miners tend to follow a similar pattern of skepticism and volatility, until they break through that infamous $5 barrier for good, and are then considered “mature” enough for institutional play.  I think AAU is very close to that status.  Pay it heed.

I’ve one last “A” stock to leave you with tonight, and no, it’s not AGQ, or even AG, AEM or AU though those stocks are certainly weurthy (and should be considered with this reading).   No, tonight’s last plug is The Forgotten Jacksonian, humble Mr. Anderson — ANDE– which has calmly and quietly broken out to all time highs and the coveted “free air” of newly traversed ground.   I like it on a retrace of this weekly breakout, and soon:

I will be around only sporadically tomorrow as I must attend to some heart rending family business.  My best to you all in these fecund and opportune times.

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It seems Mother Market has decided to “take the piss” as they say in the jolly old UK, on my beleaguered soul today.   She drove the dollar up and the Amex Gold Bugs $HUI Index down to recent sub-optimal climes, while rifling my pockets for spare cigs and change for the jukebox.

I continue to call bullshit on she and her precious dollar, however, despite her mischievous manichean attempts to subdue me.    Because the dollar rolled today, only to see gold and to some extent, silver, remain unchanged.   I believe the reason the move was not taken altogether seriously is the amoung of overhead resistance the dollar will be limping into as early as tomorrow.   Note the base line “hold” (#1) and the three resistance lines (#’s 2, 3 & 4) fast approaching for the buck:

As a result of my decision to flail the dollar with a whipe of intertwined balogna skins today, I began adding more silver and gold miners this afternoon.  I did not add more AGQ, as I’d rather buy that on an uptrend, and escape its inherent volatility in an unsure market.   I did add, SLW, EXK, SSRI on the silver side, and NG, NGD, and AAU on the gold side.   Nothing extravagant,yet, mind you.   I’m  just pacing my way back into the game so I can blow cigar smoke at my nearest opponents’ wives.

SLW gives me comfort here, as far as today’s headfake.  Can you tell me why?

SLW is a must have in the port, ladies and gentlemen.  A must have.

Thanks again for all your kindness today, and I bid you adieu for now.

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And Just the Right Colour (sic), Too!

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It certainly feels good to stretch one’s wings once again, especially after a period of soreness and chafing, when the gold and silver markets pulled back in feeble, milquetoast fashion, rendering my hedges dull and feckless, and largely a waste of my time.   Luckily, I exited the remainder of my precious metal hedges today, and for the most part in the plus column (while my short ETF hedges were not), and the whole unpleasantness was avoided save for a more optimum re-entry price on a few select names.

As I previously stated, the dollar and the Amex Gold Bug Index ($HUI) were my guide in re-entering this morning, and the $HUI preceded the dollar in breaking that “roof” at $535 that has been plaguing us for the best part of a week.  I think today’s strong candle — on volume not evident in this chart, but in the individual names — gives we longer term players the assurance we need to be back in for the final ramp into Spring:

Note that upon the strong break this morning, I piled into AGQ with the gusto of a small ravenous narwhale amongst the migratory squid, immediately purchasing my first allocation (about one half of my expected total) without a limit order.  When things are breaking out like this, you always want to make sure you at least wet your beak so that you are not left behind in a tidal surge.   I also put in limit orders at this morning’s gap — and they never came close to being filled all day.   Tomorrow I shall try again for my fills there.

As planned, apres this break,  I also added to my considerable hordes in EXK, SLW, SIL and NGD.   As early as tomorrow I expect something of a pullback, but I will be adding at each opportunity.   Next in line is PAAS, AG, MVG and perhaps even CDE and HL.   I shall be as a fat suckling pig in a candy shoppe.   And no, I will not forget Prometheus’s gold — EGO, ANV and IAG will be added to as well, perhaps with IVN and AAU.

Scratch that, I just looked at the charts.  I will definitely be adding some AAU tomorrow.

Cheerio! Wot?  Your friend, Happy Jake.

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

Boomer’s First Signed Act! (Check out the Instrumentalism!)

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As you well know, I am a believer– in many senses of the word (and the Word, and the weurd ).   But like Mickey Dolenz aimlessly tapping against the rim of a snare drum in an attempt to appear Ringo-weurthy, I am stuck here twiddling my Thaler collection, waiting for the second shoe to drop.

You remember my “I want to Believe” chart from four days back?  Well, it’s still stubbornly refusing to resolve itself, neither breaking down nor breaking out.   It’s enough to make one test the family flame-thrower out on the neighbor’s bird-stalking cat…

My patience is wearing to a thin thread, but I know I won’t have to wait much longer.  The dollar looks to be in its last throes, and will either spit the bit tonight, or take off in one last spasm of orgasmic excess followed by a quick-wilt into mid-February.   Your cue will be the $77.80 line on the DX-Y.  I believe that is our point of no return. 

Should the dollar fail there, I will be loading kegs of AGQ-brand sweet mead onto the back of my ale truck, along with SIL, SLW, and of course, EXK.    I will also have gold brands for you to swill, likely headed by IAG, ANV and EGO.   I never sold much RGLD, but I will likely be adding to that role as well.

For those of you who want something right now ,and cannot otherwise hold your water, I think the Borg cannot resist assimilating this latent bull, and so BWA should be bought here with alacrity.   The same goes for the providers of mining machinery to the mines above, JOYG and TEX.

JOYG to you all.

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The dollar finally bounced today, and in a big way.  As mentioned in my last post, the longer term dollar trend line held at just below $77.00 on the $DX-Y Index.  Gold and silver also bounced today after being somewhat bludgeoned the day prior.  Certainly this drama prattles on in more curious and curiouser fashion.

Like my friends Gary and Le Monsieur, I want to believe the precious metal bull is done consolidating and is ready to take off.  However, today’s considerable bounce in the dollar and certain things I’m seeing in the $HUI Goldbugs chart continue to give me pause.

Luckily, I think the question will resolve itself soon, as the $HUI is approaching serious resistance on the daily charts.  This resistance, if broken, will give me all the assurance I need to jump back in the market long and strong:

Now, I’m not one for advocating dandruff-shampoo formations, but the combination of approaching resistance, and the 50-day EMA give me enough pause to wait one or two more days to see how this all shakes out.  Again, if this is the C-wave finale, we’ll have plenty of room to banque large coin before it’s run its course.   The good news is the 200-day remains a rock solid buy-point, as it has throughout most of this long bull run for the miners.

On a happier note, today one of loyal reader Teahouse’s favourite stocks — FRG — got swallowed up by a hungry major, again illustrating why we like to buy and hold (even in diminished capacity) the junior miners in this bull instead of the larger miners. 

 In an increasingly active M&A market, you want to be holding buyout upside, not acquisition upside for the simple reason that,with the days of Cisco and Fifth Third Bank’s long acquiring sprees behind us, there’s just not much upside to owning an acquiror.  And in owning the juniors, you know there’s always a chance of even a crappy company waking up to a 25-50% price pop.   Play the odds that lie in your favor, I say.

In honor of Teahouse’s alert (I owned FRG but had never blogged about it until Employee 8 brought it up here), I will also feature another of his favourites tonight, MVG — a nice little silver miner.  He gave me some crap for selling the $12.50 February calls a couple of weeks back when I was hedging the portfolio, but that trade has worked out, and I still own all the MVG I had purchased down in the $6-$7 range as a result (I’ve since covered the calls at short pennies).

I thing MVG is not far from a bottom on this pullback, if it has not bottomed already. Moreover, it’s a relatively low risk play from this point on:

Congrats to Teahouse and all my other fellow FRG holders, and let’s get out and get the next one.  They’re coming for sure.

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