[youtube:http://www.youtube.com/watch?v=iCQ0vDAbF7s 450 300]

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Rock your socks off like a blazing set of gold & silver monkeys!

ANV?

AAU?

AGQ?

AG?

Folks, that’s just the “A’s.”

Heck, that’s just some of the A’s!

LOL.  Hang on, and keep your hands inside the compartment at all times.  These are historic times, and I’m glad you’re along for the ride.

Watch as long suffering junior golds like RBY, EGO, IAG and yes, even NGD, roar forward here.

Back on the road again tomorrow, but I’ll try to check in tomorrow evening.

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I apologize again for only being among you in rare circumstances these past few days. Except for a brief glimpse at The PPT and the regular iBankCoin panopoly today, I had little time to visit and surely none to roll out a post of any quality.

You see I was getting ready for my Washington trip.   Washington, DC, the seat of the Federal Maw, that is.   And oh what an egregious trip it is, as I’m off to see an actual Federal functionary.  A cypher.  A paper pusher.  A true honest to goodness Level 15 bureaucrat.   Assistant to the assistant secretary of Tax Payer Deflowerment and Refurbishing. 

I attend with a client, and I must say I’m morbidly curious.  I’ve never actually had to correspond in person with a Federal government employee (at least none that didn’t have to be elected first).  We are actually going to see this particular green eye shade public pensionairy about an interesting subject that I wish I could share with you here, but cannot.  It would make for a good story, let me tell you, and maybe I’ll roll it out a year from now.  

Until then, I will be busy as Paul Ryan in a forest of red tape and pork loin.  I will try to Blackberry in, and perhaps post from my hotel tomorrow evening, provided I’m not eaten by some brand of obscene government-provisioned and taxpayer fortified bed mite.

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What’s that you say?  Wasn’t it a shame to see all the lily-livers jumping off the bus at 3:00 pm today?  Well yes, I admit it was.   But I must also say it was quite amusing, as I was in meetings all afternoon and only got to review the tape in 20-20 hindsight.  It’s amazing to watch the experienced, hoary old gold and silver bulls shake the noobs like a passel of defeated rats fleeing the maze.  Here’s some advice next time the dollar is melting down and you feel trapped into pushing the panic button:

Be the maze.  Don’t listen to the dufuses and the short termers, but think about how you are constructing the web, the maze, the golden thread spun up around their misbegotten strategies.  You are the maze, and they cannot gnaw their way out, as you are a maze constructed of the finest cement… not maize.

Attend to the dollar this evening:

We could bounce here again, for sure.  But the way the rest of the stochs are looking, it doesn’t look like a bounce is imminent.  I think we’ll see a snap of this long term support line, and then there will be the deluge.

For now, let’s stick to high quality names, though I like crazy stuff like AAU, IVN IAG, NGD, EXK and even AGQ.  However, there is one silver stock that stands asportfolio  royalty — the mineless and therefore sinless, SLW.  Remember this reminder chart I published just over two weeks back?

Did you indulge?  Those who follow me on The PPT did, as do those who are watching my pick in the March Madness Tourney.  All found SLW and were comforted:

Thank you indeud for you patience and indulgence, as always.

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Listen up kids, I don’t do drugs.  

No, really.

No, I get high on… silver highs.   New one’s especially.  ‘Fact, I might even OD on breaking all-time highs, but I am doing wind sprints and having my sons jump out of random closets at me— “Cato-Clouseau-style” — in order to get my adrenaline glands in good condition for the eventuality.

Cause I’m pretty sure it’s coming.   Tonight we have new 31-year highs at $33.12, which is making me very happy.  Mind you I started buying physical silver at about $4.50 an ounce, and have never sold any of it.  That’s over 630% since 2002.  I wish I could say the same for my silver stocks, which I’ve traded perhaps with over-zealous vigour (sic).  In truth, they’ve been even more volatile than the commodity price itself.  

My favorite silver play continues to be the royalty play Silver Wheaton — SLW— which does not dirty its fingernails with crude dirt-scratching but instead secures royalty payment in silver at a certain price in exchange for financing miners.   Would you screech out loud if I told you that SLW had arranged to be paid in silver at the equivalent of less than $5.00 an ounce?   That’s like taking a time machine back to 2002 and rifling the unsuspecting corner numismatic storedfront for less than appreciated 100 oz. ingots, only to return to February 2011 and have them assayed for over $33… and counting.

Can you see why I’m so excited about royalty plays?  They are, in fact, leverage for the leveraged price of the precious metal, as that is what the miners do — they allow one leverage on an increasing precious metal price.  The royalty play is one step higher up the chain of amped return.  Is there risk of default and other mining related problems?  Of course, but like a bank, a diversified portfolio will absorb some of that volatility.  

 Remember this SLW  chart from a couple of weeks ago?   The two arrows are the places where I’ve made recent buys.  We’re still not back to our old December highs, but I think we’ll be there, maybe as soon as this week.  

 Royal Gold — RGLD — is another royalty play, this time on the gold side, and with an even more diversified portfolio than SLW.   That’s another Jacksonian you want to own.

I also like EXK, AGQ (be careful with this one), PAAS, MVG, SVM, AG, CDE (small), and SSRI.  Another great catch all for all of these (or most) is SIL, the silver miner ETF. 

For gold, the old standards, ANV, EGO, RGLD, IAG, GDX, GDXJ, NGD  are recommended, and newcomers IVN and AAU to taste.  I continue to believe also that the rare earth metals will resume their volatile climbs, and I like AVL and QSURD best.

Nothing going on in the U.S. stock markets tomorrow, but the precious metal, U.S. dollar and futures markets should be fun.  Ciao for now.

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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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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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