Joined Apr 19, 2009
721 Blog Posts

Dollar Pick Up


Jake Cashes in some Chips for “Butter & Egg Money.”

Yes, I’m raising more cash ovah heah, and even buying puts for the first time since the March ’09 lift-off.    Sure I’ve sold calls in various weighty PM positions before this, but today I actually bot a starter in January [[SPY]] puts.   100 Jan 110’s @ $2.82-.85, to be exact.  

Was I early?  Sure looks that way.   That said, I think we’ll have a dollar bounce here very soon, and my purchase will prove propitious.   That said, I won’t add the second half until  I see a break, ovah heah.   Note the evidence:


In the meantime, I am continuing to sell down exploding higher PM positions, much to my rue and chagrin.   I just sold 2k more Allied Nevada Gold Corp. [[ANV]] @ $13.97,  2k more Eldorado Gold Corporation (USA) [[EGO]] @ $13.92 and 4k more [[EXK]] and Golden Star Resources Ltd. (USA) [[GSS]] at $3.91 and $4.23, respectively.

I cannot bring myself to sell anymore Silver Wheaton Corp. (USA) [[SLW]] , even as I know it’s the right thing to do at this juncture.  

My advice?  Now that the Fly is legitimately cussin’ and hollerin’ I think it’s time to raise cash like it’s “bread day” in Zimbabwe, people.  

In the least, it will be good practice.



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A Day In Dente’s (sic) Inferno


The Gentle Artisan Hard at Work at His Craft


I know I don’t usually do these “day in the life” blog posts, but I figured I owed you all an explanation of why I wasn’t blogging like the wind today, promoting the most excellent “on fiah” aspects of The PPT, and generally contributing to the greater wisdom of iBC.com…

Or at least letting some of the Gore defenders have it on that previous posting.  Seriously people, focus like a laser here… loving one’s children and one’s environment and taking it hard to the global authoritarian hypocrites who attempt to manipulate those values for power and profit ends are not mutually exclusive concepts…. sheesh.  

But we’ll continue that discussion at a later date.   First,  my day in hell…


It actually started last night whilst I was clutching my tooth brush betwixt my teeth whilst simultaneously helping the wee one with some pajama misalignment he had orchestrated.   A faint “click” in the front of my mouth told me something was wrong, and sure enough, one of two crowns I’d had placed on my rabbit chompers after a tragic rugby-game collision-excision had somehow broken loose from it’s mooring, leaving me with a gap in my face that had me looking like an extra on Deliverance, sans classy banjo and bowl haircut.

Not exactly the “captain of industry” look I wanted to work for my Monday morning meeting, however.

 Luckily, my extremely attactive and efficient –if retardedly expensive —Lady Dentist was able fit me into her earliest slot at 7:30 am this morning.  I figured I’d be in and out with a repair before market open.   I thought horribly wrong.

After being ushered into her warmly lit and well appointed rooms, I was quickly and efficiently seated, x-rayed (twice) and tucked in with a descending flat screen and cosy neck pillow rigging by her equally comely Eastern European dental assistant, while I awaited the return of Lady Dentifrice, Lip-Glossed Queen of the latte-set tooth crowd.

She returned all frowny faced, my vexxing x-rays clutched against her charcoal gray cashmere-sweatered bosom, and a gleam of concern nesting behind her au currant steel framed specs.   The news was bad, and I won’t bore you with it, but it did not come out of the “bloodless, pain-free and inexpensive” box from which I’d pulled so many previous procedures in my incredibly lucky 40 year dental track-record.    No this one started with minor oral surgery and ended with expensive cosmetic sturm and drang.

Luckily, she felt she could get most of it done today, and in about two or so hours.   Big deal,  I thought, so I have to watch Kudlow with that weird haircut and Erin suck up to Dubai money men for two more hours… I’ll live…

Two quarts of lidocaine and probably a good pint and a half of my blood later, it was nearing two o’clock and my back was beggining to spasm on me.   While my sturdy and still impeccably lip-glossed Lady Dentite had managed to take care of all the complicated prepping, modeling, whittling, etc., that came with fixing not one, but two of my damaged teeth (turns out the second one was showing similar fractious inclinations, so…), she still had not managed to extricate the last bit of “root” from aforesaid canal…

And it wasn’t for want of trying, either, let me tell you.   The woman has forearms like coiled springs of moly-carbon steel.   But I can only assume she was getting tired of the jets of arterial blood just missing her custom-cut snow white Armani lab coat, because she finally sent me to the oral surgeon to have the final piece removed.

At 2:15 today I drove approximately 1.5 miles to another dentist/M.D. office in the same neighborhood, but I might as well have been driving to the gates of hell.   As warm and inviting as my dentist’s offices were, these new rooms were like something out of a fifties-era Raymond Burr sci-fi movie.   The front office ladies were plump and over-makeuped, and their smiles!… Their smiles put the chill of the winter grave in me…

After filling out five(!) pages of insurance and disclaimer/disclosure errata, I was ushered into the pre-Roe v. Wade clincian’s “operating room” which looked nothing like the warm and modern offices from which I’d just travelled, and really not un-like a not so recently outfitted janitor’s closet.  

The tools of my imminent torture were laid out on a wooden bench that looked like it had been stolen from Jacob Marley.   They were wrapped in sterilized plastic, but they were no disposables… no, quite the opposite.   I was pretty sure that those ratchets, blades and sutures had seen as many summers as I had — if not more.   The drill was brass — I shit you not– as was the suction vacuum!  It was like something out of a steam-punk graphic novel.

At this point, I’m looking around for an escape route out of there, but I have another problem — my anaesthesia from the long hours previous had begun to wear off and the hole in my head was beginning to throb.   I flagged down a passing nurse and she nodded knowingly — “Can you take Vicoden okay?” she asked me. 

I’m like (WTF?) to myself, but then I realize she’s only getting my pain prescription ready for after the coming ordeal, and I make it clear, I need to be “re-Lido’d” post-haste.  (By this time, around 3 pm, I’ve got all the  lingo down cold.)   She ambles off to find the doctor.  

He finally comes in about fifteen minutes later (luckily, I’d brought a book, my friends at CNBC were NOT an option at this shoppe), and he’s lanky and athletic, wearing scrubs that had seen better days.   You ever have that feeling when you first meet someone who’s supposed to be a doctor and the first thing that pops into your head — unbidden — is “Is this guy really a doctor?”   That was my first impression.   

He looks at my x-rays (yes they had to take a third “full header” this time) and looks over at me and says “Number nine… well, you know that’s gonna come out right?”   I think I gulped in assent, because he proceeded to whip out another steam punk-device, a Jules Verne-looking plunger with about a four inch needle on the end of it.   The man could’ve started knitting with this thing it was so big.   He proceeds to do the “shake the lip” needle insertion thing my Dad’s dentist (who I was sentenced to as a kid) did 35 years ago.  

So far so good.   The old half gallon of numb-juice from the previous episode in what in contrast was clearly Ellisium held fast and I only felt about a quarter of the four inch spike he was inserting.   Then he threw me for a loop and said — sorry, we need to get the palette, too.  Gulping again, and praying to the Anaesthesia gods that my personal dentite had sufficiently benumbed the roof of my mouth as well I took a sharp intake of air and he went in…

No dice,  I thought, as I felt him trying to drive that instrument of Vulcan into my nasal cavity from below.   Yipe! I said… “Sorry” he said — very sympathetically, considering the circumstances.   His assistant grinned stoically.  Grimaced, really.    15 more minutes went by as they waited for all this new juice to “settle.”   I began to worry it would start wearing off, when he finally reappeared, smocked out and read for action…


You know what… I am going to end this here, rather than get into the medieval-on-my-ass scene that followed.   I just realized I’m probably making quite a few of you ill with all this,  and it’s getting late and my Vikes are wearing off again…  Let it comfort your heart to know it all came out well in the end, and I’m halfway done with this “simple fix.”



On market stuff, nothing of major surprise today.  Well, Monsanto Company [[MON]] was a bit of a pleasant surprise, as was the continual holding of the PM markets in green territory.   I still think it’s a mirage however, and my “tell” stock United Parcel Service, Inc. [[UPS]] looks like it’s going to take Christmas break early.

Have cash on hand.   Pullback coming.   Best to you.


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The Eternally Melting Glacier, and other Myths

Global Warming Emperors Witness Melt Down,  Fully-Clothed
Wow, so this whole global warming meme really is a concentrated hood-wink after all.  Who would ever have thunk it?

I mean, what with International Socialism taking such a sharp stick in the tuchus since the fall of the Soviet Union and all, who would’ve thought those parties interested in heavily regulated authoritarian governance would’ve migrated to a different — if only slightly varied — alarmist message in order to bring forth a similar global regime?

Shoot-fire, it’s not like there was any money in it, right big Al?!  Or any other reason to contrive a bureaucratic-media alliance posing as science?

Take a damp sauna this week and step away from your trading post for a second to offer a short prayer of thanks to whatever Turkey-god unto which you may confer worship.  Thank that idol that this stuff is all starting to break forth, despite the media grandees so emotionally and cognitively invested in keeping this scandal silent.  Thank them also that it’s been broken before the awful “Cap & Trade” legislation passed in the Pelosi House this past summer has been imposed upon our barely ambulatory American economy.  

The faked data, the fudged models, the conspiring “climatologists” — it was all of a piece meant to throw great steel bands of punitive regulation on this economy, bands that would restrict your freedom and funnel funds from states that provided energy to those who used it (and consequently were hurting for cash),  while at the same time carving off a fat “vigorish” to the select captains of finance and government facile enough to “get their piece of the billions” in green economy rent seeking at Joe Six Pack’s expense.

Don’t get me wrong.  I don’t have a problem with bankers and financiers seeking to make a buck off a new economic paradigm, as long as it’s one legitimately established and beneficial to society, not parasitical and authoritarian in its intent as this anthropogenic global warming (AGW) hoax has so proven to be.

This thing smelled from the very beginning.   Now it’s grown ripe and broken open.   Be mindful and be wary of a concentrated group think that calls itself “science” but looks and sounds more like authoritarianism, especially since similar efforts are being put forth on behalf of health-care alarmism.   Responsibility is a heavy burden, but one we must take up as citizens and parents.

Bonus piece — The 128 year (and counting) Crisis of the Melting Polar Ice Caps.  (hat tip to Ed Driscoll).


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Hocking the Silver Service into the Close

Everything must go!


As the Turkey Gods take awkward flight from the Bridges of the Kosciuszko (sic), so too they leave with Mom’s silverware firmly “en beak.”

And hey, what a shocker that the markets found an excuse to sell themselves into perdition this late in the daily cycle, no?  Who would have thought?   

For my part, I was only happy that I was afforded the chance to sell some more gold and silver positions at only a slight discount to Wednesday’s highs.   Today, I cut into the actual bullion positions, with a 5k sell of [[SLV]] at $18.02 and a 1k sell of [[GLD]] in the $115.40’s.  I also boosted the last (600 shs) of my [[AGQ]] position just south of $68.

For those who’ve been paying attention, that’s about 50% of each PM position in my port if you include the 40 Royal Gold, Inc. [[RGLD]] April $55 calls I sold today (at $4.80 and $4.90) as well.

I also dumped 2k  more Allied Nevada Gold Corp. [[ANV]] in the $13.02-.04 range.  I am now up to 30% cash overall, and if you exclude the large position in United Parcel Service, Inc. [[UPS]] that I cannot sell, I am very close to 50% in cash for the remainder of the portfolio. 

Here’s what else — I expect to sell more Monday and on any knee-jerk bounce in the early parts of next week’s “Tryptophan Rebound.”   Remember:

The Ghost of a Turkey God does not a Turkey God’s Blessing endow.  (Confucious)

I may throw up some charts, but for now, I am taking the Jacksons to 50% cash as well, with a “butcher’s cut” slap chop to every position in uniform fashion.   I will likely post that revision this weekend along with said charts, if you are lucky, and if I am not overburdened by post-Holiday catch-all catch-up here at the homestead.

My take — this is not over, even as I concur with many on this boar that the Dubai thing was a rasher of extra rancid bacon from those who eschew such lovely pork products in their nutritious diets. 

Be cautious, and be wary of stopped-watch bears who are right once a quarter.   Best to you all.


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Euros Throat Grabbed by Angry Turkey Gods

“The Check Is in the Mail, Inshallah”
The Turkey Gods are punishing Europe and Asia for not properly honoring Thanksgiving, as is proper and righteous.  

If you think, however, that we will escape the “surprize!” news that Dubai may default on all those re-donkulous island developments with which they were blotting the Arabian Sea during the height of the funny money period, well… have another bowl of stuffing and steel yourself for a margin call.

There was massive selling on strength in the [[SPY]] yesterday (close to $700 mm) and I thought that would mean Fly would get his 10,500 and “done” on Friday.   With the Euros getting emasculated in early Turkey Day trading (down anywhere from 3.2% to 3.4%), however, all bets may be off, and our sweet tongued friend may remain “family friendly” till at least the end of December.

In other non-surprising news, I sold even more Silver Standard Resources Inc. (USA) [[SSRI]] and Silver Wheaton Corp. (USA) [[SLW]] yesterday, 2k shares each, and to my horror, at prices well below their close.   That said, I am feeling more and more comfortable with my cash horde, and with my taking money off the table in these high falutin’ $HUI stocks.  

On Friday, I expect I will take the final step of getting rid of the rest of my [[AGQ]] (only 600 shs left, so not much) and selling some [[SLV]] and [[GLD]] for the first time in 14 months. 

I will not sell Royal Gold, Inc. [[RGLD]] or Exeter Resource Corp. [[XRA]] only because I have not yet built full positions in those, and will take this pullback as a gift.  I have trimmed every other position anywhere from 30-50%, however.

I plan to celebrate tonight with some nice turkey and egregious amounts of California cabernet.  Caymus Special Reserve is my favourite (sic), but I’ll also bring some Freemark Abbey, as it’s a friend’s winery, and I’m partial.

Please have a Happy Thanksgiving, and try not to think too much about how cranes in Arabia (or other wealthy developing nation enclaves) nearly always designate a market top for most of the Western World.    

Best to you all, my friends, and watch the drinking and driving.

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Stretched Taut

[youtube:http://www.youtube.com/watch?v=ba8OGkwgPOc 450 300] ____________________
Yeah, I’m still selling.

Maybe “Armegeddon-style.”  Like I’m one of these fine Japanesey blokes fighting like a samurai to smoosh my face against the rising nylon tide.

All I know is that the dollar trade is stre-e-e-e-e-e-tched taut. There’s only so much a dollah can take, after all.

Before it snaps.

So I’m selling, into egregiousity. I’m selling beautiful IAMGOLD Corporation (USA) [[IAG]] — one third of my portion at 2k shares @ $18.87.

I even sold more Silver Wheaton Corp. (USA) [[SLW]] today… only 1k at $16.15, leaving me with 10k left.  I got rid of the bulk of my KKR Financial Holdings LLC [[KFN]] as well, 4k shares at $5.35.

Meanwhile, in Market Earth, people keep appeasing the Turkey Gods with supplications comprised of gold scoffing and precious metal pilgrimage, saying :

Oh Turkey Gods, if only you will make this a secular bull, and give reasons unto us that will be economically feasible for this uplifting in the markets, I will promise to stop throwing trash and banana excrement on my neighbor’s lawn, in Thy mercy.”

Too little too late, I say.  My pendulum is stuck at 9 o’clock, but not for long my fair thee widgets.   Said pendulum will come “crack-back” style to implode the knees of those hoping for a consolidato (Italian for “get up & go market”).

I am at 30% cash right now.  Near unprecedented.  There’s only so much a market can take, and guess what?   I’m selling more calls tomorrow.

Best to all you nylon tug of war mavens.


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