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Stepped up the buying today, in the teeth of the downdraft.  I see these fat white bloated English bodies piled high, but stand firm in my resolution that we are approaching an oversold bounce in the precious market.   [[GDX]] gives me more than a ray of hope with it’s action today:

Note the 61.8% retrace hit on this weekly chart.   That’s a very significant level, which will usually put up a ton of support from the underside (as well as resistance on top).   Now we may get another tap of this level tomorrow, but I think this is the place we should all be accumulating our PM’s of choice.

You know I have.

Today, I added another 2k of Silver Wheaton Corp. (USA) [[SLW]] at $14.03, and yet another 40 June 11’s of the same name, this time at $3.90.   Don’t ask me why I keep buying 40 contracts at a time, there’s probably some internal fibonacci mechanism at work here.  I also added 2k more of Allied Nevada Gold Corp. [[ANV]] below $13 and another 4k of [[EXK]] at $3.32.  Last I put on 1k more CDE at below $15-.   I think that’s it for me in that name.

I also added significantly to my [[AGQ]] net weurth (sic), with another 800 shs at $51.52, give or take.   I now have 2k shares total.   I will add, but cautiously, to this bucking bronco.   I think that the dollar — [[DXY]] may scoop to $80 here, which could some additional pressure on the PM’s.

It will all be temporary, I aver.  

On the hedging side, I dumped another 50 of my [[SPY]] puts at a nice profit, which generally means that there will be a waterfall decline tomorrow morning.

You think I’m kidding.   I’m not.   I have 100 SPY puts left, and am still “full up” with 14k [[BGZ]] and 10k [[QID]] .   This has cushioned some of my long losses these last few days, but I can tell you verily that I look forward to blowing out of these positions.

I think we approach that time.   Keep in mind silver is trading right now at one sixty seventh the price of gold.  That’s nuts, and could presage a gold drop to $1,030-ish.    Even there the POG is still well over 60x the price of silver.  

Short summary — silver is already sold.   I don’t feel it has a whole lot farther to go.  Trade accordingly.

Best to you all.

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[youtube:http://www.youtube.com/watch?v=jIfu2A0ezq0 450 300]

Official Theme Song of Obamerica

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I may own 16 tonnes (sic) of No. 9 Silver by the end this downdraft.

So be it. 

Yesterday, I took it up a notch, as reported in my comments section.  Not only did I add yet again to my Silver Wheaton Corp. (USA) [[SLW]] call horde, with 40 more June $11’s at $4.10, but I also began to purchase my old friend [[AGQ]] , with 600 shs at $53.77 and later in the day, another 600 at $55.11.    I may add to that double silver horde again this morning if I can get this post done.

(It’s troubling to me that sometimes the blogging gets in the way of trading and other weurth(sic)-while endeavours (sic).)

For those of you watching at home, I’m almost back up to my total pre-December concentrated position in Silver Wheaton Corp. (USA) [[SLW]] with 18k shares.  Another 2k will finish that hording.   I am also up to 14k on the smaller [[EXK]] , and 7.5k on [[CDE]] .    Because of the selling I did in December, I still have a lot of dry powder, which I will employ if we get one more push to the $1,030 area in gold.   As it is, however, we may not get past the $1,075 I’d mentioned earlier in the week.

The important datum in this scenario, however is the ratio of the prices of gold and silver — right now, the price of gold stands at a nosebleed 65.75 multiple of the price of silver.   As I’ve mentioned before, recent historical price ratios are normally between 40 and 50 times.   So yes, gold may drop from here, but even in a drop to $1,030 from here, gold is still at near-nosebleed 61.6x the price of silver (with silver at the $16.71 an ounce it’s at right now).

So yes, I’m accumulating silver, in the sixteen tonnes range — it’s a value play at this point, and indubitably so.   As one of my colleagues in The PPT explained yesterday “I had a dream where everyone’s future wealth was determined by how large of a silver belt buckle they wore.”

I also added 2k of [[PAAS]] yesterday in the $21.65 range.   That was a standing buy order that just got hit.   That’s been happening a lot lately. 

On the gold front, I will look to add to Eldorado Gold Corporation (USA) [[EGO]] and perhaps some Allied Nevada Gold Corp. [[ANV]] today, as I got my IAMGOLD Corporation (USA) [[IAG]] position up to 10k shares as of yesterday as well with a buy in the low $14’s.     For the record, I am not adding any [[SLV]] or [[GLD]] here, as I still have half my positions left over from the December sales. 

If anything, I will add more [[AGQ]] today, and judging by it’s price, that may be soon.

Best to you all.

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Update:  Sorry for not mentioning the banks, which continue to look good, even as the Great Bankers (Geithner and Bernanke) continue to look bad (and mad) before the dopes in Congress.  Odd, no?

  BB&T Corporation BB&T Corporation [[BBT]] continues to be a top pick, and even the stalwart sons of the Confederacy down at Sterne Agee and Leech(es) have given it a “buy” with a target of $33 (my target is $38, as you know).   Thanks to The PPT for that bit of information.    

I also like Pacific Capital Bancorp [[PCBC]] on this weakness, just remember it is a lotto type pick, and go lightly, Holly.   Fifth Third Bancorp [[FITB]] and Huntington Bancshares Incorporated [[HBAN]] continue on the Crosby Still Nash & Young theme of “Four Dead in Oh-hi-oh” — as Nat City and Provident are already dead, and these may survive, AND MORE.

Best.

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No, it’s not what you think.   I’m talking about  a jump to value ovah heah.  

Getting ready to add even more Silver Wheaton Corp. (USA) [[SLW]] this morning at $14.87 (announced on The PPT yesterday) as I have a longer term buy-stop in at that level.   Also liking Allied Nevada Gold Corp. [[ANV]] at these ridiculous levels as well.  

The one thing that’s great — and horrifying – -about these PM miner markets is that  you are never really “out of the game” until that final ridiculous blow-off top.   There’s almost always an opportunity to grab shares cheap thanks to the high volatility, and more important, low float aspect of these markets.

I am hoping for a nice hard sell off into the 10 o’clock time frame.  Hard enough to make one’s kidney’s seize up like they’ve got hold of a spot of rancid hot cawfee.  

I want to buy into that fear this morning.   I am putting on the armor of steely determination now.   

For your bennies, I’ll be looking at the gems — not only the above mentioned two, but Eldorado Gold Corporation (USA) [[EGO]] , Royal Gold, Inc. [[RGLD]] , [[EXK]] , [[PAAS]] , IAMGOLD Corporation (USA) [[IAG]] and yes, Chanci, even [[SVM]] for the first time for me.

Don’t forget also about the bank stocks I’ve mentioned — BB&T Corporation BB&T Corporation BB&T Corporation [[BBT]] , PNC Financial Services [[PNC]] , Pacific Capital Bancorp [[PCBC]] , Huntington Bancshares Incorporated [[HBAN]] (watch for earnings on this last), and the two LED sweeties — Cree, Inc. [[CREE]] and Veeco Instruments Inc. [[VECO]] .

Last, note the ags are again on the march.  My favourites here are The Andersons, Inc. [[ANDE]] , Sociedad Quimica y Minera (ADR) [[SQM]] and of course, the Franken-Corn Friends at Monsanto Company [[MON]] .

I hope to have more for you later….  Hit ’em low and hard.

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What the Frig?
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I have to thank my Massachoo friend, E8, a.k.a. “Teahouse on the Tracks” for giving me this easy throwaway header.

But let that not distract from the niceness of this junior miner in the full Lawn Guylandesque sense of the term. Fronteer Development Group Inc. (USA) [[FRG]] is no doubt “BTFO” as we say around here, and the daily tells us so:

With that kind of lift off on volume like we had Friday, you can expect further action as follow through, but if I’m youse (sic), I’m gonna wait and let it flag some. Why? Well, the weekly should be an indication:

As you can see, there’s a secondary consolidation zone that we’ve just broken into. I think that means we’ll see a little bit more consoliadation here, and maybe even a pullback to the original breakout line at $4.85 or so.  

When we’ve dealt with this little dollar eruption in the next couple of days to a week, I think FRG will resume it’s heading back over the $5.60 mark, where it should have clear sailing well into the $8-9.00 range.

Keep in mind we should have some pullback on our favorite miners here, so keep your eyes open.  I will be looking to grab more Silver Wheaton Corp. (USA) [[SLW]] , [[EXK]] , Allied Nevada Gold Corp. [[ANV]] and Eldorado Gold Corporation (USA) [[EGO]] in a rigidly opportunistic fashion, like Frank Sinatra on Rookie Cocktail Waitress Night at the Sands.

[[PAL]] and [[PTM]] remain strong relative to gold and even silver.   These laggards need to catch up.

Keep in mind also that the 13-week EMA’s for Cree, Inc. [[CREE]] and Veeco Instruments Inc. [[VECO]] of which I spoke a few posts back, should be looming into view this week as well.   This is not an opportunity to ignore.

May all your bastards be glorious, and I hope to speak to you tomorrow sometime.

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I’ve been abominably busy and there’s just no accounting for it. You’ll just have to put up with my ghostlike presence as I H.A.L.O.-parachute in with various recs from the troposphere.

The good news is, nothing is going on that hasn’t been anticipated for some time. You might be at the opera, you might be at the symphony, you might simply be out at the soda jerk’s enjoying a nice sasparilla with your best girl, Friday, but you haven’t missed a thing.

You’re right in the middle of it, so it’s time to lay down your knitting needles and Persian cat, and lookee here at these six charts of wonder. They are all in the weekly format, so you know there’s “no bullshit” gumming anything up, making you lose your nerve.

If I’m you, I’m relaxing right here. I’m not you, and I can’t relax due to my manic tendencies, but don’t feel bad, it keeps my weight down in the winter. I’m relaxing and I’m letting the market come to me. If I’m you, I mean. “Come to me” is code for “wait for the 13-week EMA touch” — especially on these balenes of beauty.

First two LED stocks. “WTF!?” you say to yourself.

WTF, indeud. Come on ovah heah and check out “Elvis” the King — Cree, Inc. [[CREE]] first. Behold!

And his LED brother, from Ghostbusters II — Veeco Instruments Inc. [[VECO]]– almost as purty !

Now those are some pretty formations, no?  Can you say “simpleton easy?”   Good, good.   Now look at my other friends.  My favorite goldie Allied Nevada Gold Corp. [[ANV]] is first:

And who could forget my enormous EGO—  Eldorado Gold Corporation (USA) [[EGO]] ?   Another weekly wonder:

One more golden gate to my heart, is the appropriately named IAMGOLD Corporation (USA) [[IAG]] :

And last but not least, the “Stock of the Year” –Silver Wheaton Corp. (USA) [[SLW]] —  a silver stallion that will outlast them all:

Repair more to your weekly charts for comfort, my droogs.   Remember “13-week EMA” on these high fliers, and let not the shadow of Zul darken your hearts.

Quanza.

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Exchanging the Secret Handshake
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The guy on the right in the picture above is counting on the stupidity of his majority peasant populace to pull off one of the grandest day-time thefts in recent years — the 50% devaluation of his country’s currency by fiat Executive declaration. Like the crazed-with-power dictator in Woody Allen’s classic comedy Bananas who declared “All children… under the age of 16 years old.. are now…. 16 years old,” El Pizza Face above is “declaring” that every unit of currency (the “bolivar“) is worth one half of what it was worth yesterday… just “because.”   

What’s even funnier is he’s now saying that retailers cannot raise prices in response to this devaluation, upon pain of seizure.  How long do you think retail businesses can stay open charging 50% under cost of goods?   One wonders also how long even the economically illiterate majority of Venezuela will stand for such blatent skulduggery?   I’m guessing for about as long as the food stores hold out.

Meanwhile back here in this country, we’ve got that pesky Constitution getting in the way of any similar grand plans to immediately double the money supply.   But our leaders want to get in on the free-gov’t-money-for-votes-racket too,  so they’ve got to come up with more creative methodologies.  

Luckily, they’ve got a compliant Federal Reserve whose number one priority is saving themselves and the badly damaged fractional reserve banking system.   That means the Fed’s alleged “guiding missions” of maintaining low inflation and a high rate of employment take a back seat to the Darwinian imperative — “survival at all costs.”   This is good news for the dear leaders in Congress and the White House.

What’s more, our leaders have got the rest of the world using our currency as reserves.   That means, for this brief shining moment in history, our leaders can do what Hugo Chavez only wishes he could do — print fresh new bails of cash via deficit financing with little to no apparent consequence to our national economic status.

For now. 

But Mother Economics is even more of a caustic wit than Mother Nature, and much like these soi-disant world governors who are being served flaming slices of “Humble Baked Alaska” with these record-breaking cold temperatures, so too will our Congressional and Fed Capos reap multiple facial hatchetings to their long beards for this extended abuse of global trust.   The dollar may not halve in value over night like the Meatball’s Bolivar did, but it’s breaking down all the same.  

Today’s action has us back in the congestion zone again, which is a sticky swamp as of late.   This means good news for commodities and other real things as the clarion bell of inflation is being rung once again.   Answering the call is your one and only “Stock of the Year” pick Silver Wheaton Corp. (USA) [[SLW]] , now clearly BTFO’ing to new 52-week highs.   I like it on a pullback, as it has a reputation for filling gaps.

While [[GLD]] is moving up in a stately patrician manner, [[SLV]] and its turbocharged brother  [[AGQ]] are playing catch-up, and will likely out-perform in the near term.   Same holds true for the other precious non-gold varietals like [[PTM]] and the two platinum-palladium miners [[PAL]] (which is a rocket ship headed to the sun, Icharus-style) and Stillwater Mining Company [[SWC]] .

Don’t forget all the junior burritos I’ve given you in the past.   Allied Nevada Gold Corp. [[ANV]] , Eldorado Gold Corporation (USA) [[EGO]] and IAMGOLD Corporation (USA) [[IAG]] head the list, but the “Nth Factor” — NovaGold Resources Inc. (USA) [[NG]] , New Gold Inc. (USA) [[NGD]] and Northgate Minerals Corporation (USA) [[NXG]] are roaring too, along with Ivanhoe Mines Ltd. (USA) [[IVN]] , Rubicon Minerals Corp. (USA) [[RBY]] , Exeter Resource Corp. [[XRA]] and many others.   

If I had to pick another “launch to the sun” like Silver Wheaton Corp. (USA) [[SLW]] I think it would probably be [[EXK]] .   It reminds me of SLW in the old days.     Hold on to your capital people, they will try to appropriate it in multiple fashions going forward.  

Best to you all.

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