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

Salud.

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Everything must go!

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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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He was Emo when Emo wasn’t cool.
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Stubbornly and like an ass, I sold continuously throughout  the day.    

In drips and drabs of course, but it becomes cumulative after a while.   Frankly, I don’t know how Docteur Le Fly does it.   It seems like one day he’s fully invested and then — BOOM! — He’s 60% in cash.

It doesn’t even seem to faze him.

I, on the other hand, agonize on every share sold in a rising market, even as I know deep down in my medulla oblongata (sic), it must be done.  I am at a little more than 25% cash right now and I feel as if I’ve been scourged on the wheel for a fortnight.

Perhaps I shall cut out that nasty M.O. and be shrived of my cognitive dissonance sins at last.  Who needs motor function anyway? I can always blog at you via sophisticated “eye-blink” technology, right?

Onto the shriving.   Needless to say, I bought nothing today, despite the ambulatory nature of such Ag Gems as Jacksonians The Andersons, Inc. [[ANDE]] and Monsanto Company [[MON]] , which finally broke back over the $80 barrier.    You remember the old Fly-saying, yes?  “If it gets over $80, it’s going to $120?”

We shall see.   I also like Intrepid Potash, Inc. [[IPI]] and Agria Corporation (ADR) [[GRO]] , but lower.

Sales today were across the board on the PM’s and I even took the time to sell off some odds and ends as well.

I sold some enormous Eldorado Gold Corporation (USA) [[EGO]] today — almost 30% of my stash, 4k at $13.12.     I also sold 2k shares of the enormous performer IAMGOLD Corporation (USA) [[IAG]] , one third of my holdings in that name, for $18.85.    Sawing a hunk of my shoulder blade off would’ve been less painful.

Of my 6k shares of [[GDX]] I sold 2k outright at $50.18, and then hedged the remainder by selling March $50 calls at $5.25 a piece.

Taking a dull spoon to my eyes, I sold another 4k of Silver Wheaton Corp. (USA) [[SLW]] , and then hedged 7k of the remaining 11 by selling 70 March $16 calls at $1.90 and $2.00.     Perhaps talking about it here will assuage my pain? 

I sold 2k of [[PAAS]] at $24.68 and another stray K of Allied Nevada Gold Corp. [[ANV]] at $12.16, leaving me with 4 and 10k respectively.    What will you have of me next?  My children?

Oh my, I must have been putting this one out of my mind, as I’d almost forgotten… I also sold 8k of [[EXK]] today (40%!) at $3.68.  Arthur Koestler, I know your Darkness at Noon!

Last on the precious fronts, I sold 1.5k of [[CDE]] at $21.99 and $22.03, and 4k of Rubicon Minerals Corp. (USA) [[RBY]] at $4.16.  

On the “odds and ends” front, I sold another 2k of [[BIOS]] at $7.68, leaving me with only 2k left, which I will not sell outside of Armegeddon, where I may need River Styx fare. 

I also sold 6k of Citigroup Inc. [[C]] for a rare loss (only a couple of pennies plus commish) on a complete “cautionary” basis.   I think I can buy those back cheaper, is all.    Last, I sold a stub amount (1k) of Sinovac Biotech Ltd. [[SVA]] which I’ve owned since the low $3 range, for $7.51.

Last, but not least, I booted the remainder of my [[ERX]] (1.5k) with the dividend pushout, at $38.46.

I am quite exhausted and on tenter-hooks, ovah heah, but I must trust my charts and instincts, or all is lost.   I am thinking we will see a correction at least into Turkey Week, as Tim Geithner and the Klown Kircus will be selling more yummy T-bonds into the maw of Mother Market whilst we prepare for Pilgrim Foods.

You know what that usually means by now, I expect.   If not, you have not been paying close attention, and are condemned to suffer the fate of Piglet during Swine Flu Saison (sic).    (Ostracism)

Best to you this weekend.   Off to see an Opera.

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Addenda — if you haven’t already done so, be sure to ring up your block head Senator and tell him/her that this Obamacare is a train wreck waiting to happen.     It looks like Dirty Harry Reid and the Dem Senate are taking a page out of Madame Pelosi’s book of legerdemain and are going to try to jam this through in a Saturday Night Special.   If this were a good bill, of course they’d have no need to be so serpentine.

Ciao.

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Happy Birthday to the Big Big Boy

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Days like today are painful.

For instance, today my youngest is four. I go now to his natal festivities.

There’s nothing that says “looming mortality” than knowing that this one — your last for sure — is finally gone from babyhood. Next year, the little genius will be on his way to kinny-garten (sic), and the home will become a near-empty nest.

(Note to self — send the wife out a job-hunting.)

And so it goes, I guess, as we shuffle on towards the grave.
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Today was also a meloncholy portfolio day. Yes, all my glorious precious metal plays remained strong and the recent string of steamer trunks full of cold hard cash continued to arrive like lost Titanic luggage in my accounts, much to the chagrin and further penury of the Palo Alto Bear Fund.

But I also continued to liquidate. Do you know how hard that is in this kind of rising metal environment? It’s damn hard. But it must be done, if I’m to fertilize further conquests with the renewable blessings of the Turkey Gods.

I sold another K of [[AGQ]] at $68.36. Only half a position left, there. I sold 4K of Silver Wheaton Corp. (USA) [[SLW]] — my favourite (sic)– at $15.93.   That was only 20% of my SLW stash, but still as painful as giving up a pinky finger to the Sawz-all Wars.

I launched the last 20 Silver Standard Resources Inc. (USA) [[SSRI]] December $16 calls at $5.75, and the last 20 Allied Nevada Gold Corp. [[ANV]] December $7.50’s at $4.70 each.

I also sold 5,000 shares of Allied Nevada Gold Corp. [[ANV]] at $12.18, leaving me 10K, and another 1,000 of Silver Standard Resources Inc. (USA) [[SSRI]] common at $21.61, leaving me with just 3k left.

I still have much to harvest and I may yet be late in doing so.   Such is the special sadness of the fiat farmer.

I am at over 12% cash on the entirety of the portfolio and much more in the PM portion.

I’m off to give a Big Boy presents. Best to you, and good night..

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Bow and give sacrifice!
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You don’t think this cocaine and eggs party can go on forever do you?

Be serious. 

I sold a third of my [[AGQ]] today.   I got rid of the rest of my [[GDX]] calls.   I sold Allied Nevada Gold Corp. [[ANV]] calls.

I sheeved, I shrieved, I shucked.

Tomorrow, I’ll do more.

All things in good time.

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Daaaaaah-DOPE-di-dope-di-dope-dope-dope-dope-daaaaahhhhh…..
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Dateline Palo Alto — Sierra Club President Richard Cecil-Head, IV speaking from his Half Moon Bay headquarter today stated that “No efforts will be spared,” in seeking to preserve the shrinking populace of gold bears in the foothills of Palo Alto.

“Few people realize the boon to society these particular bears can provide,” stated Mr. Head.  

 “Leaving aside their propensity to keep their backyard pools clean of scree and pine dust– sometimes scrubbing them as many as three times a day– these bears also provide significant aesthetic value by selling into every downspike and even potential downspike in this secular bull market over the last nine years.”

“Do you realize how rare a commodity such perfect obtuseness is nature?  Darwin be damned – these knuckleheads must be preserved for the good of us all!”

Head is particularly concerned about the dead and dying bears being reported all up and down the California coast, especially those found with [[GDX]] -brand tire tracks across their furry backs.

“Please,”  Mr. Head told this reporter “Let’s get this story out there.   We cannot afford to lose this valuable animal to the ravages of rational market.”

(Rumours (sic) of Mr. Head’s large investments in physical gold were unconfirmed as of this column’s deadline.)

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Today I was busy, friends.

I sold a lot of phat calls that I owned since the last two dips today, mostly because they were getting long in the tooth (ie, “December strikes”).   I got rid of December GDX $39’s and $40’s at embarassing profits, all thanks and praise to the GDX shorts, once again.   I did similarly with December strike Silver Wheaton Corp. (USA) [[SLW]] calls that I held at $7.50 and $9.00 strikes.  

The profits were unseemly.  I shall not speak of them again, for fear of “colour” (sic).

I also sold 20 Allied Nevada Gold Corp. [[ANV]] December $7.50 calls for a nice mark up, and I hold another 20 I will likely boost tomorrow.   I still hold another 40 SLW and another 20 GDX December 40’s (listen, I had a ton, okay?) which I will likely get rid of for the one reason that time grows short on them.

The next dip I will be starting the process all over again, likely with the same robust names, as they have been “berry berry good to me,” Garret Morris-style.

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Please tell me you got some Royal Gold, Inc. [[RGLD]] over the last weeks and/or months?    It broke the fruits out today, and it’s in “I dunno WTF” territory now.

I would love for RGLD to return to the breakout area of $49.72 or so… I just don’t know that we’ll see it.    I will not sell this stock under $200,  and  I firmly believe it will be the Potash Corp./Saskatchewan (USA) [[POT]] and The Mosaic Company [[MOS]] of the “next” commodity bubble, which will be precious metal driven.

Don’t forget about [[PTM]] in all the gold and silver shuffle, either.  

  Sell some Silver Standard Resources Inc. (USA) [[SSRI]] if you have gains.  It’s a lagger, and I’m cutting back on it.   I think I shall replace it with Allied Nevada Gold Corp. [[ANV]] , on the Jacksonian Roster, fwiw.

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Last, there’s been a lot of back and forth this last weekend over the benificence of socialized medicine, care of Nan Pelosi, Scary Harry Reid and President Obama.   Putting all politics aside, know this — you cannot get something for nothing, and economics law will not self-suspend, even in the name of alleged altruism.

As I explained to a fellow blogger over the weekend, increased demand drives one of two things — higher prices or lack of supply, depending on whether prices are allowed to increase in a free market environment.

Increased participation in a market at a “zero price” (ie, gov’t paid health-care) will put a strain on our current supply of very expensive health care, even positing there is no exit by our  current providers.    If prices are not allowed to rise — or heaven forfend  they are cut — there will be massive “throwing in of the towel” by providers across the board.

Look for a  bifurcated system to arise, in that event, where the best providers that remain will “opt out” of any government — and likely many “governmentalized private” — insurance programs to serve those who can afford “club-based” gold plated care.  

Does anyone think that anybody but the Ted Kennedys and other such plutocrats who can join “the Club” will be happy with what remains for the masses?  

Dr. Fly cannot attend to everyone, you know.

Think hard, America.

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