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I had a reader inquire on the last posting about the state of some of my favoured (sic) silver-golden children. I speak particularly of [[SLW]] and [[IAG]], of whose Canadian charts, he was somewhat ill-taken. Point of fact, I think he was experiencing some painful reverse peristalsis, to cadge a term.

He mentioned also [[AUY]] but while I’ve spoken of them before as a decent buy and hold, they fall into my “aquiror” basket rather than potential “acquiree,” one and therefore I find them less appetizing.

But still nutritious with regard to a balanced portfolio of course!

Back to [[SLW]] which you all know holds a favoured place in my heart, much like one of my children, save not breathing or in need of sustencance, and quite weighty for it’s size and youth.   Whenever I need some perpsective on these names (or any names, s’truth) I repair to the weekly charts for a more holistic gander.  In this regard, SLW shows us a pattern in good standing:

As you will note, we are consilidating after breaking to multi-year and yes, “all time” highs.  If anything, we’re forming a bit of a handle whilst using the 13-week EMA as support.   Not exactly cause for alarm given the 13-week’s reliability over the last 15 months or so. 

Next let’s look at the weekly for the Gold Man Sacks, otherwise known as [[IAG]]:

IAG may need some time before it  breaks back above that $20 mark that defined its recent high back in November of ’09, but this consolidation pattern is by no means a sickly one.  The 13-wk EMA serves as the stalwart in this case as well, and should be watched as IAG grinds higher.

[[AUY]] is the least pretty, and frankly, its last quarterly earnings report denote some work that needs to be done before it can recapture it’s place of “honour.”  Note the Limbo in which it currently finds itself:

 While I believe this is a decent “buy and hold,” I think AUY likely has at least a quarter or two more to go before it can attempt to break to new highs.  It, too, should hold abover the 13 week EMA, but in this case, the real test will be a break of $13.

Good luck and do not fear, as I believe the dollar will be our friend going forward, in ascendency or demise.

Best to you all.

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One last thing:

Happy Memorial Day to all, and especially to our veterans here and departed, without whom we would never have the pleasure of these inter-tube conversations. Thank you for your sacrifice.

And a special treat — the inimitable Renaissance Man and combat veteran Mark Helprin has a special Memorial Day essay that is “must” reading for all sensible citizens of this great land.

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From Your Biggest Fan!
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Bon soir, mon ami, et Bon Anniversaire! I hope this evening finds you croque’d to the gills on your favourite Bordeaux or Gamay Beaujolais, if you will.

For my part, I intend to eat multiple sandwiches tomorrow in your honour (sic), as it seems like we may have to withstand another drawdown if this afternoon’s last minute plummet and tonight’s weak futures review hold course.

On the good news front, [[GLD]] and [[SLV]] hung on and look to be bouncing with more relative strength than the rest of the market. Some previously beaten down junior minors looked like heroe as well, including [[XRA]], [[GSS]], [[NGD]], [[FRG]] and my favourite, [[ANV]].   Note how ANV kept that uptrend intact on the weekly:

THe daily is less pretty, but still hanging in there:

Keep your eye on the quality, and on that weekly chart.  If we break that line, we will likely see further consolidation.  Right now, both gold and silver are higher even as stock futures look weak.   At some point we will likely see complete separation in trading behaviour.

Best to you all, mes amis.

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That’s “Loin” not “Lion!” 

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We’re a little bit over a year into my tenure here, and we’ve probably had three or four “one of those days” days since I started. 

Today was one for sure.

This is life in the PM bull, friends, and we should be used to it by now.   I expect we are not fully shaken out, although that over 10% move in the $XAU index today might have scared some people off for the next decade or so.

That said, opportunities abound.   [[EXK]] was even up by the end of the day, and Silver Wheaton Corp. (USA) [[SLW]] filled two large gaps from the prior month’s work.  In hindsight, I likely should have taken the opportunity last week to sell some calls, as I’ve done in the past, but frankly, I was just too busy.   That’s why I choose to play long term secular bulls like the gold and silver markets, however, and that strategy has served me well.

So buck up Cowboy, and get ready for some more bull-riding, pleasant and not so much.   The good news is those with some dry powder can still grab some great names, perhaps as early as tomorrow morning.   I’ve mentioned Allied Nevada Gold Corp. [[ANV]] before (I also like Eldorado Gold Corporation (USA) [[EGO]] here), and you will remember this weekly chart from a couple of days back:

Note we’ve touched that trend line today, as I’d predicted.   We may do so again tomorrow, but that mid $17’s area remains a primo area to pick up some nuggets.  

On the silver side, besides the two I’d mentioned above, I think [[PAAS]] is still one of your better bets, and riding that weekly trendline like a refusnik on the potato line.  

Feel free to stop by here, or The PPT to discuss stocks and trends.  I’m here for you during the roller coaster times.

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V.King Relative?

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Some people asked me about some stuff to buy on a pullback, and well, I still love Allied Nevada Gold Corp. [[ANV]] despite their pulling off the egregious “bought deal” $250mm + dilution yesterday night.

I think the buy is pretty obvious on the weekly:

If you can buy off that trend line in the high $17’s, low $18’s, you should be sitting in clover like a greedy leprechaun and his keg o’ gold.  Lookee here (sic) at the daily:

As you can see from the chart, I had an order in to buy in the lower $20’s region, which hit after I was out of the office today, and I’m perfectly fine with it.   That said, this thing could go to the 20-day EMA ($18.41) very easily an even a bit below that.   So I’m keeping powder dry.

I’m not going to post these charts, but I will also be looking to add silver on any weakeness.  I really like Silver Wheaton Corp. (USA) [[SLW]] as you know, but also [[PAAS]]   is showing great relative strength, as is [[EXK]] and [[CDE]] .   I might add to my Smaug’s horde on a pullback here.

Hecla Mining Company [[HL]] and [[MVG]] are the second string, but sometimes HL gets a real boost from the local alchy’s with a sentimental touch.  Watch them all, and think about Apex Silver Mines Limited [[SIL]] as a catch all in the realm of [[GDX]] , except for silvers.

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Best to you, Jake.

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In the later stages of these “C-level” cyclical bull runs (unfurling within a secular bull run), it often starts to get giddy-gigglyfun, especially with the junior miners, who all begin to pop audibly, like champagne corks, as the end of a run draws near.

Who doesn’t like 8, 9, 10, 11 heck, even 12% moves in one day?  Like [[BAA]] today — who’d have thunk it’d raise from the dead after so many weeks of dormancy?  I mean, besides me?

That’s not quite right… I didn’t know it would take off today, only that it would within the confines of this cyclical bull run.  That’s why I own 20k shares of this and have owned other small miners ( Golden Star Resources Ltd. (USA) [[GSS]] come to mind) in the past.   They are, in essence, unexpiring options at these prices.  

Here’s [[BAA]] on the weekly chart, finally getting some air off the broken downtrend line:

As you can see there’s a lot of room to grow there.  

And here’s Exeter Resource Corp. [[XRA]] which recently spun off a $3 stock [[EXGMA]] , which you’d have to add to it’s current $8 stock price (we bot the consolidated company in the low sixes, remember?).  Weekly:

Despite this junior giving birth to another junior, she seems no worse for wear, and in fact, stronger than ever.

   Keep an eye on these names and others from the small cap portolio (Rubicon Minerals Corp. (USA) [[RBY]] , Golden Star Resources Ltd. (USA) [[GSS]] , [[EXK]] ,  etc.)  as I have a strong suspicion they will continue to break out to our unending joy and to our enemies great chagrin, for a good piece going forward.

Stay vigilant,  and watch [[UUP]] for clues to the immediate future.

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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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