Joined Apr 19, 2009
721 Blog Posts

Brave New World



Maybe this is the week of the “Paul Ryan Feel Good,” or just the week when Joe Biden rolled himself in a child’s wading pool full of tar and scrap paper, and then set himself alight.

Maybe the world feels a little more optimistic these days than they did even three weeks back.  Maybe that’s just an optical (auditory?) illusion.  Whatever the reason, the dollar is finally starting to budge a little bit, and we may be sniffing a break of $82.00 within the next week or so.  As a result, the risk trade, especially in the precious metals, refineries and earl & gas plays has finally begun to become more appetizing here.

You know I love SLW, and it’s really looking strong again here.  After consolidating on the 200-week moving average for ten weeks (but not breaking below it, important!), SLW is now over it’s 13-week and 34-week moving average.    Above $30 right now at a close today of $31.65, you might want to set a buy stop right at that low $30-ish level.  It’s worth waiting a bit for here, as the last couple of days have been explosive.  Almost always, SLW will reward the patient hand.  Again, SIL is for you if you do not want to own individual silver stocks.

On the gold side, I don’t think you could do much better than RGLD.  Right now it’s forming the right side of a mini-cup, and I really think the next time it breaches $80.00, it will be home free — flying in virgin territory.  It’s absolutely astounding what this stock has done over the last 10 years.  In 2001, it was trading at less than $2.00.  They’ve only gotten stronger in their royalty finance commitments recently, and now appear to be stepping into the big leagues.  I also like AUY, as mentioned, and of course GDXJ.

Last but not least, I like the refiners.  I love my WNR, and still clutch it, but for my money, I think PSX warrants a lot of attention too. After it settles down from its most recent breakout on the weekly chart, I think it’s a purchase at the $39.00 level. Whether it’s the year of the monkey or the Age of Aquarius, for some reason refiners are hot again, and it’s time to take advantage.

I think this string will run at least to the end of the month, especially if the dollar continues to cooperate.  At that point, however, I’m going to start at least selling calls, if not whole swaths of stocks.   This POTUS race is going to tighten, and I don’t think that will be good for market breaking into mid-September.  Until then, however, let’s play that grasshopper music.

Best to you all.



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I Need A Show of Hands


At least this kid has an excuse… he’s a fuggin’ BABY!


OK, I’m going to need some help here.  After posting last night’s piece on the stellar Paul Ryan, I came to a rather astonishing conclusion.  Specifically, it appears there are still some iBankCoin correspondents who are leaning towards pulling the lever for  Barack Obama and Joe Biden this November.

Granted, some of our correspondents are Europeans and other like-minded (statist) foreigners, and therefore categorized in my taxonomy as “brothers from another planet.”  I believe, however, most of that coalition refrains from participating in the discussion outside of “thumbing down” pretty much every comment I make.  There are a contingent of regulars who have always leaned left, however, and it seems from last night’s badinage that many of them may take part in the mutual suicide pact which has tacitly agreed to give Obama four more years.

I take a second to “caveat” here that I may be wrong, and these fellows are merely pulling my beard and playing “Devil’s Advocate” with old Jake Sprat for a lark.

So I’d like to take this opportunity to inquire of the more traditionally “progressive” among us (and please, make your own judgment w. regard to status here), where do you all stand?

First question: do you plan on voting for Barack one more time this November, if you are able to vote at all?

Follow up query:  If your above answer is yes, then “Why?”  Do you believe you are merely “taking one for the team,” as a quasi-loyal Dem or do you believe that Obama still has work to do to cement the “change we’ve been hoping/waiting for?”

Serious questions for serious times.

My best to you.


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Presidential Balls, Mr. Romney!

[youtube:http://www.youtube.com/watch?v=o1yTY2MciOk 450 300]

The Deconstruction.  Note the “Poleaxed Look.”


Most of you who have followed this blog have also registered my laments with regard to the Presidential Politics of 2102.  Like many a conservative who can parse economics and math, I wrung my hands regarding the presidential roster that we were offered this year.  No Mitch Daniels, no Bobby Jindal, and no Paul Ryan.  All were conservatives, and moreover, all intellectual powerhouses that that would have systematically disassembled the Obama Mistake with devastating power and cool analysis.  Instead we got baggage laden prospects like Newt Gingrich and Herman Cain, or worse, one trick social conservative ponies like Rick Santorum and Michelle Bachmann.   I ventured close to despair in realizing that the only legitimate prospect my party entertained was a Northeast Governor who had established a progenitor for Obamacare.

But I must say I took some heart in the vigor with with Romney, when finally bestowed with the nomination, took on the Obama record. While holding back on the big guns that might train on the President’s character and past, Romney has attempted to make this election about the President’s record as President, which has been singularly abysmal.

And then he shocked me again.  By choosing Paul Ryan as his running mate — a Kennedyesque Catholic out of Janesville, Wisconsin — instead of the safer Rubio (Hispanic Floridian), Portman (Swingstate Ohian middle roader), or Nikki Haley (female Indian Governor of South Carolina) , Romney has essentially thrown the gauntlet down.  With this pick , Romney has said to conservatives “No, really, this is about the fiscal future of this country.”   On the other hand, he has said to liberals and Obamanites, “Your way is not sustainable, and I’ve hired the one man who will tear your fantasy world to shreds.” (See above for further analysis).

I could not be more pleased.  Mr. Romney has drafted, essentially,  the anti-Obama.  The young man whom seniors trust, despite his very adult analysis of Medicare, because he knows what that program needs to do to remain solvent.  Romney has drafted man who will have a serious conversation that will send the demagogues sprinting for the exits.  Vice Presidential debates?  Are you familiar with the term “flensing?”  I can’t think of a more appropriate metaphor.

The smartest man in Congress is now in the hunt.  The Republic is in the balance.  Let the contest begin.

Gold looking good, stay the course with those ETF’s I mentioned last week.


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The Other Night I Saw the Fly

The other night I saw the Fly
And Jeremy and Chuck Am I.
Chess and Wine and Gappy Too
(Might sound like three, but only two)
Woodshedder bedecked in denim
Scotty with lovely wife, God bless’im

Cain Thaler came on wheelchair made
of Bamboo- wire and cut jade
Ancient even past his years
He breathed blue smoke and shed dry tears
For Detroit his home benighted so
By corrupt gov’t and cold grey snow

Fly made toasts to kith and kin
Whilst Jemmy’s stomach near augured in.
Gapp and Chuck, wolfish rakes
Assessed the women (even Jake’s)
Yet stayed their hands and played the part
Of gentlemen, with Gentle Heart

RC of course, the Silent Giant
Hove to the table, his palette pliant
Without his better half’s restraint
Drew ample beverage, drew ample plate.

One party missing, and well missed
The liberal heart, whom Nature kissed
No Cronkite and no Greenman showed
To plead ‘gainst MONstah, and for “O.”


Progenic duty stayed the bars
(And further frolics with cigars)
Sent “the Jakes” home by one AM
Whilst Friends of Fly (and Chess and Jem)
Went forth with blessings from us both
For IBC, for friends and “Growth.”

Someone claimed I haven’t posted in two months! Calumny!
It’s been a mere one month. It’s only seemed like two in our accelerated world. Things have slowed, or blowed, or both, and I won’t bore you with details, but I should be able to post somewhat more often, at least in August.

Did I mention I had to cut my vacation short and come home three days early? Yeah, I know, boo hoo, at least I have a job, right? What right have I to complain when this is the lot I’ve chosen? Right. None.

Meanwhile, while I’ve been resting my keyboard, the silver markets have begun to show signs of life again. If you are not in EXK and AG, you’ve still got time, but probably not a tonne of it. Likewise SLW which had a nice move today. Dollars to donuts the lesser bodies like MVG and SSRI will also begin to rise alongside the champions. Like usual, the real moves will be made in the Fall for those stocks, but it certainly wouldn’t hurt you to start accumulating now. As usual, SIL is a great “combinator” if you don’t want to agonize over the usual suspects.

Gold stocks have become almost too annoying to mess with on the individual side, so outside of RGLD, and maybe AUY, I am not going to recommend you dabble in anything but the ETF’s like GDX and GDXJ.

Before you ask, yes, I still own the rare earths (QRM and AVL, especially), despite their declines. I just add more on whims. What the hell, they are popcorn cheap and I am quite certain they will Bela Lugosi when the dollar heads down one more time this coming Election Season.

What’s got me in “near term buy” mode however, are a couple of stocks I’ve owned for a while that are showing nice promise right now. One is nat gas former superstar ECA, which looks beautiful, especially on a pullback to the $21.00 range. Another is PSX, which I “inherited” when it spun off of COP, back in April (COP being one of the Samurai Seven along with fat dividend gold stock AEM, which has also risen from the grave as of late). And along with PSX, I will take some HFC, another refiner. I like them both at $38 if you are looking for a buy range.

I will endeavor to be more faithful to you my friends. The spirit is always willing, as you know… the flesh? Well…




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Excuse me, El Presidente? What’djoo say?

 If you were successful, somebody along the line gave you some help.  There was a great teacher somewhere in your life.  Somebody helped to create this unbelievable American system that we have that allowed you to thrive.  Somebody invested in roads and bridges.  If you’ve got a business — you didn’t build that.  Somebody else made that happen.  The Internet didn’t get invented on its own.  Government research created the Internet so that all the companies could make money off the Internet.

     The point is, is that when we succeed, we succeed because of our individual initiative, but also because we do things together.  There are some things, just like fighting fires, we don’t do on our own.  I mean, imagine if everybody had their own fire service.  That would be a hard way to organize fighting fires.

Absolutely. Fucking. Unbelievable.

Is anyone still out there in IBC-land still making excuses for this Wandering Harlequin Show?

Inquiring (sentient) minds want to know…


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Back in Black

[youtube:http://www.youtube.com/watch?v=0fSEjlLQcRY 450 300]

The dollar’s off 70 cents as I type this, down below $82 again to a low we haven’t seen since mine and the Fly’s birthday on the 25th of last month.  That “chuffing” sound you hear is Ben Bernanke’s magical reverse vacuum blowing hundred dollar bills at Spain by way of behind the scenes European central bank bailout transfers.  $125 billion you say? It’s a mere bag of shells when one can print up one’s own constantly deflating sovereign currency in a zirp atmosphere.  Isn’t this fun?  Why didn’t Japan think of this??

Anyone else getting the hard stuff while it’s cheap?  Take a look at my two “T’s” — TKC and recently murdered TC for a flyer.  Of course I still love BAA, but ANV is looking very tasty and has RGLD ever really disappointed you?  On the silver side, it’s broken record time again… AG, EXK and SLW remain the nobles.  PAAS for a flyer. For those with less time, GDXJ and SIL are the ETF plays for now.

I had one of the worst Friday’s in my career this past week, dealing with a very large dollar client issue that one would have to hear to believe.  One thing I can say about my industry, there’s hardly ever a dull moment.  You guys think trading stocks is a bitch?  Try something more illiquid next time…

Best to you all.




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