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In more civilized days, I wouldn’t even have to make a pun title, but these are coarser times and someone might take the original cliche the wrong way, so I’ve made it a drug reference for the weak minded.

No matter, it’s a warning to those of you who would take tonight’s pre-market rebound as reason to snort piles of pink-flake coca products and go long every stock in the Tim Penny Stock Aisle.

My advice, take a more cautionary route and stick with the vehicles that will truly benefit from the near guaranteed inflation of the ECB, now all but certain with this latest package of six jugajillion new Eurotards for the shoring of Greece, Macedonia, Phillipi, the outer Crete Islands, and– as a bonus– Reno, Nevada.

Those vehicles be made of things that glitter and hold their value in a paper mache schit-storm.   Just one I propose tonight is [[EXK]] , which I think is going to lift off again within a day or two.   Note the bouncing at support:

Yes the stochs have not completely turned up yet, as they have w. Silver Wheaton Corp. (USA) [[SLW]] and [[CDE]] which are also eminently buyable, but I think EXK will be a late bloomer like it’s older compadres have been as well.

Another you should keep an eye on is $TRAN king, United Parcel Service, Inc. [[UPS]] .   I think it may be a “first to recover” stock as well, along with the PM sector.  

Be cautious tomorrow, and if you must buy, make it a tangible.  One of my PM pics (Allied Nevada Gold Corp. [[ANV]] an Eldorado Gold Corporation (USA) [[EGO]] are easy) should be considered, but everything in moderation for now.   Let’s see how this shakes out.   Keep an eye on Titanium Metals Corporation [[TIE]] an it’s other heavy metal friends [[TC’]] and Teck Cominco Limited (USA) [[TCK]] for additional possible ads.

My best to you all.

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Yeah, there are a lot of silver eggs breaking out, but why not play off the Easter theme and show how [[PAAS]]  is bouncing off both excellent (and reliable) trendline and moving average support lines?

Look at these here eggs!

Silver is over $18.00 tonight and I expect more from [[SLV]] and [[AGQ]] tomorrow.  But in the long run, you are best off with the people that pull this beautiful, most useful metal out of the earth.

That’s Silver Wheaton Corp. (USA) [[SLW]] , [[SVM]] , [[EXK]] , [[CDE]] , Hecla Mining Company [[HL]] , Silver Standard Resources Inc. (USA) [[SSRI]]  and of course E8’s [[MVG]] — a most excellent call.

Gold will blow out in unison, but as always, Silver is the high beta T-Rex.  

Best to you all.

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Helpless Feeb Trading, FTW! (Or Not)
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I don’t usually go for the whole gloating thing, as it’s unkind, and generally karmically challenging.

I’ll make an exception this one time, however.  Call it karmic recognition if you will.   Much to the cognitively challenged’s chagrin, [[SLV]] is triumphant once again, after many weeks of representing second place to Canadians and other luge and curling aficionados.

The dollar index, [[DXY]] , is back below $80.00, currently trading at $79.86. It’s proxy [[UUP]] is below a significant (61.8%) intermediate term Fibonacci line ($23.52), and looks to be heading towards $23.13, it’s next support.

Many of my compatriots are short or heavily in cash. Small traders have one of the lowest call positions recorded since last March’s lows. People cannot believe this market can go up. In short– It’s a basket weaver’s market, and I’ve just finished a fine set of cane-rush patio chairs.

I’d like [[AGQ]] to stay above $55.02, and [[EXK]] to stay above $3.36 first, and then $3.61 second.   Near term target is $3.76, but I’m holding for the long term.  [[SVM]] is approaching a very important 61.8% fib line at $6.99, and if it should break it (I don’t think it will on first try, frankly) then it should run right to it’s recent highs at $8.00.    Last, [[PAAS]] is good to go over $22.35, and it’s next stop should be in the $26.50 recent high area.

My favourite, Silver Wheaton Corp. (USA) [[SLW]] is labouring (sic) on low volume here, and needs to get above $15.95 in order to “release” to the recent highs of $17.80.   It bears watching, while bears are watching.

Here’s what’s giving me hope for a bullish continuation even amidst the ursinity of my peers… The Russell (I use RUT or [[IWM]] to track it) is breaking out ahead of the [[SPY]] .     If the [[DJT]] and it’s representative United Parcel Service, Inc. [[UPS]] can continue north and break above recent highs, then I will have further comfort.

Until then, please be sure to purchase plenty of technical trading books.  Those authors need to eat, too, you know.

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

Wait for 1:43 for the transcendent beauty to begin.   Then go out and procure your child cello lessons.

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Who’s sick of this damn winter already? I sure am.   Someone sold me a story about moving to the South some years ago, but I think I’m going to apply for a refund.  We had zero snow last year (sticking wise) and I bet we’ve had 25-30 inches this year.   And the cold!  The damnable cold!   I could almost handle the snow if it didn’t come with this extra serving of Canadian Clipper.  

Enough already! 

But that brings me to a super nova of my own making.  It’s called my portfolio, and you are welcome to bask in it’s awesome radiation.   The dollar (DXY) is down 17 cent to $80.16 (use [[UUP]] as your proxy here), and the price of gold (“POG”) is up well over $1,100 to $1,109.10.    If we get to $1,120 on the POG, we will be off to the races.

Mind you, I think we’re already off.   I’m already locked and loaded, and if you’ve been following this blog over the last three plus weeks, you’re likely ready as well.   If not, and you’re still looking for some last minute shopping, here again are my two favourites (sic)…

First the Gold Standard, Allied Nevada Gold Corp. [[ANV]] :

Note, I’m using the weekly’s here because these are long termers for me.  You can also see that the last two weeks has been giving us the signal in both names.  

My silver goddess has been and continues to be Silver Wheaton Corp. (USA) [[SLW]] .   This chart is even prettier than the previous:

It’s late so I’ll bid you adieu.   Here’s to a great week, and a great month in the PM’s.    These gems are just two of many that I believe will run in the next several weeks.  I also look for Royal Gold, Inc. [[RGLD]] , Eldorado Gold Corporation (USA) [[EGO]] and IAMGOLD Corporation (USA) [[IAG]] on the gold front, and [[EXK]] , [[SVM]] and [[PAAS]] on the silver.

Best to you all.

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Omm Nom! Nom! Nom!
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Looks like Mr. Limm and kin are trying to take away our punch bowl.   Not bloody likely, I say.

You see, the Chinese really only have one way to cauterize the inflation wound they are already seeing in their economy — and that’s by removing themselves from their peg to the U.S. dollar.  They can make all the noise in the world about raising reserve requirements and dampening loan growth, but they will will still strain to be heard over the “clack-clack-clack” of the U.S. Mintex 3ooo Printing Robots in the basement of Ben Bernanke’s Transylvania Castle.

I say, if the Chinese refuse to de-peg their currancy and let the Yuan run free, naked and untethered, they ought to just continue to get drunk and buy stocks.    It’s the only rational thing to do when you are allowing your currency to be devalued right along with that of the Great White Ghost across the Pacific.  

And let’s face it, there’s only so much iron ore, coal, copper, lead, zinc, chromium and every other heavy metal for industrial usage left in this globe.   Outside dredging the Hudson River, that is, but even that reclamation project is years away.   The Chinese know all this and realize the only way to keep those prices cheap to them is by miming along to the dollar prop story.  

Again, raising Chinese reserve ratios is not going to do that if Helicopter Ben is easing quantitatively as fast as his machines can print, purchase and store massive haystacks of U.S. cabbage like he is.   We all know (and yes, the Chinese leadership knows) that fast cash to you is just heading right back into the Chinese economy via click-bought and big box consumer goods purchases (oh, and look here, retail sales are strengthening… wonder where those goods are coming from?).  What’s more, that money, once washed up on the shores of the South China Sea has to go right back into the commodity markets as the Chinese continue to build out infrastructure and purchase raw materials inventory.

Here me now and believe me later — The Chinese cannot “whip inflation” by themselves while they are tied to the dollar, and while their growing economy is tied to our consumption.   These are infrastructural realities that are not going to change because the Chinese CB has decided to take a stern line on lending reserves.  So sorry.

My take?  Eat a samich (sic) this morning until at least 11 am to see where the market settles out.    Gold is currently down only about $16 (less than 1.5%) and silver, as usual is taking it harder, down 44 cents (2.8%), with the DXY at a current $80.64.   I continue to believe this is a shakeout, and that the dollar will not continue much higher than here, despite all this “nooze” circulating to keep it propped.  If we break much above $81, however, I will be forced to reassess, and perhaps take a little off some of my riskier metal plays.

Best to you all.

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Update:  I notice in my haste to get out this morning’s post that I neglected to give you a run down on yesterday’s purchases (which were recorded in real time on The PPT, of course, as were today’s).   Yesterday I added to the following positions:

2k Petroleo Brasileiro SA (ADR) [[PBR]] @ $40.60

4k Exeter Resource Corp. [[XRA]] @ $8.46

2k Eldorado Gold Corporation (USA) [[EGO]] @ $12.66

2k Thompson Creek Metals Company, Inc. [[TC]] @ $12.67

10k NGAS Resources, Inc. [[NGAS]] @ $1.62

1K Sociedad Quimica y Minera (ADR) [[SQM]] at $37.06

This morning’s purchases (also “adds”):

2k [[PAAS]] @ $21.75

4k Gold Fields Limited (ADR) [[GFI]] @ $11.75

 

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 [youtube:http://www.youtube.com/watch?v=-ERnT1X9HPw 450 300]

A Song for the Times?
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Well, so much for Helicopter Ben’s New York Times- abetted “tightening” kabuki theater act.

Did you enjoy it?  I hear he’s been studying at the New School.

I dunno, maybe the guys down at Goldman called Bernanke up last night and asked him for some help in getting out of their Euro shorts, since DXY (sorry, no quote yet — see? [[DXY]] ) had run up to about $80.30 today by lunch time, only to tuck tail and (Black?) swan dive right back down to $80 flat just in time for Benjamin’s Jawboning routine at 2:15 pm. 

That particular bit of mummery and prestidigitation must’ve in turn convinced at least one or two bag-holding kaftan merchants from Milwaukee to buy dollars again, because the dollar index got all the way to $80.10 by late afternoon, giving us all that familiar “blah” feeling at the close.

All pretense seems to have dropped away after the stock mavens went home, however, and the dollar is now (as of 12:36 am Eastern) trading back down to yesterday’s low’s at about $79.74, looking at a “next stop” of about $79.50, and then $79 even.     Party on, Garth (and Darth… Vadon, that is).

These incipient moves should be enough to get our rally on in the gold and silver sector, not to mention our other hard currency equivalents including earl, natural gas, and the specialty metals.   I was extremely busy today and I apologize, but my punishment was not being able to add much to the portfolio, although I would’ve loved to finish my Allied Nevada Gold Corp. [[ANV]] accumulation today.   I am quite sure it will be more dear tomorrow.  

I was able to add 60 more June $40 [[GDX]] calls at $5.80.   They were a standing order, and I think I may have been able to get them even cheaper, but beggars, chooser, etc. etc.   I now have total 120 of those $40 June strike calls, and I think I’m done there.  

 The rest of my exposure will remain in liquid equities, and I hope to add to positions tomorrow in the usual suspects, and perhaps some NovaGold Resources Inc. (USA) [[NG]] , New Gold Inc. (USA) [[NGD]] and Northgate Minerals Corporation (USA) [[NXG]] .   I also like Exeter Resource Corp. [[XRA]] ‘s relative strength as of late.  

For silver I may dip my toe in the Chanci selection — [[SVM]] , as I’ve admired their price action recently.  I may also look to grab some additional [[PAAS]] .   If [[CDE]] stalls in the early trade, I may also add to that one.

Platinum is reviving tonight along with its brethren, so don’t forget about [[PTM]] and [[PAL]] . 

On the non-precious side, I may grab some [[ERX]] for a ride similar to that of [[AGQ]] .   I also continue to like Petroleo Brasileiro SA (ADR) [[PBR]] and Occidental Petroleum Corporation [[OXY]] .    I also happen to think SandRidge Energy Inc. [[SD]] is undervalued here, and it is a perennial favourite (sic) of The PPT .

Last, don’t forget Thompson Creek Metals Company, Inc. [[TC]] , Teck Cominco Limited (USA) [[TCK]] and Titanium Metals Corporation [[TIE]] in the specialty metal names, and Sociedad Quimica y Minera (ADR) [[SQM]] , as their lithium is a bargain here as well.    I expect tomorrow will be a good day for we merry shipmates of the U.S.S Jackson.

All aboard!

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