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Many have claimed that there’s no end is sight for this downturn, or recession or depression– until we see an uptick in the housing sector again.

Still others claim that until the banks are “fixed” and back on their feet, we cannot experience stable economic growth through strong credit support.

It appears each claimant is at least partially right, and moreover, that each of those sectors live and die together, wrapped in a form of symbiosis that is both mutually beneficial… and destructive.

This may all be “Master of the Obvious” stuff for you, but I figured I’d bring it to illustrative life for you anyway.  There’s not been much talk of the housing sector recently on these boards, and maybe that “out of favor” status is warranted.  Whatever the case, it’s clear that both housing and the bank index are again marching in lock step, and seemingly to their doom.

First I’ll show you $BKX –– no surprise for my readers, who’ve seen my starting to ring up purchases in the anti-bank index SKF because of this very weekly (sic) chart:

 

Note now that in comparison, I won’t use the Housing Index ETF– XBH— mostly because it’s made up of a lot of non-house building stocks.  Same with another housing index–  ITB — where some 70+%  of the stocks encompassed is not home builders but instead retail accessory places like Pier 1 and Home Depot.   No, I simply took the most popular name in the home building industry– Beazer Homes (BZH)– and ran the weekly chart.  The similarities are astounding:

 

And like $BKX, it seems BZH is readying for a rebound as well.  It makes no matter, I wouldn’t trust either as far as I could throw their Chief Investor Relations Officer.  These are sectors that are ripe for shorting at any major moving average (which on the weekly charts above would be the 13 and 34-week EMA’s).

Have fun and keep an eye on both for any profitable divergences.  Make no mistake, both sectors are hurting right now and should continue to do so into the near future.  That doesn’t mean a scalp won’t be available on the upside every now and again.

My best to you all.

 

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Yeeeeeeehhhh-haaaawwww!

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Omm-nom-nom-nom.

Deee-licio-OH-SOH.

What do you do with a market that won’t go down like this precious metal market will not?

You continue to take what it gives you, like a nice salami & provolone with banana peppers, and rub your belly into the close.

If you were wise enough to see the imminent destruction of the currency with the “Three Lemon Slot Machine Pull”  (POTUS, House & Senate) we ushered into office in November 2008,  you– my friendo — are sitting pretty right now.

Finally, you can afford all the best poodle grooming salons, and when you take your wife out to Chez Cherise you can order two rounds of Appletinis and there’s no talk of “Going Dutch” — practically ever.

You’ve grown so bold you’ve begun to get cheeky with Dr. Fly and starting throwing jibes his way over such nettles as Flotek and the teeny tiny coffee jug plays. 

Oh yes, you’re bold.

Well snap out of it!  The market doesn’t grow to the sky and three beanpoles do not a salad garden make! (Or something to that effect…)

Now is the time to harvest.  In fact, it’s beyond time.  You should be selling down at least a third of your stash as I have here.

Today I sold even more [[AGQ]] — another 1k shares at $68.05.   Just 600 shares left, sob.

I sold New Gold Inc. (USA) [[NGD]] — egregiously late as it turns out.  They announced  problems with the Mexican gov’t on one of their mines today and were punished like a thieving child. 

I took 60% of the position off (8k shares) at $3.74.   My over 50% gain in that stock melted down to 34.5%.   Que sera.  

I also took down a quarter of my NovaGold Resources Inc. (USA) [[NG]] position at $5.33 (4k shares),  mostly because it had the same first two letters as the above loathesome NGD.   For some reason, I left Northgate Minerals Corporation (USA) [[NXG]] alone.

I guess I like X.

I did not touch [[EXK]] , Exeter Resource Corp. [[XRA]] or [[ERX]] today.

I enjoy things with X.

I also dumped about 15% of my Golden Star Resources Ltd. (USA) [[GSS]] today (2k shares) at $3.56.   Just shaving.  Just paring.  Just rebuilding the war chest.  

To that end, I sold one more thousand shares of Silver Wheaton Corp. (USA) [[SLW]] at $15.89.   I cried when I did it.  Fat, hot, soapy tears of real grief. 

In the odds and ends department, I launched the remainder of my OmniVision Technologies, Inc. [[OVTI]] , my Beazer Homes USA, Inc. [[BZH]] at $12.81 and $4.83 respectively.   

That’s a lot of trading for me.   My fingers are tired.  My cash horde is looming.  I am not gruntled.

Adieu.

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[youtube:http://www.youtube.com/watch?v=8Qtgm5g5Gyo 450 300]

Fly Takes on the Mustachio’d Bearshitters via Liberal Use of The PPT Hammer

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Here’s the full vid, if you’re interested.   I tried to isolate the part where Bugs sells the King’s garden property to the Sheriff of Nottingham (pictured above), but couldn’t find that select clip. 

 I thought the Sherriff’s self-head hammering in that scene (about 4:00 or so in the full ‘toon) a particularly apt metaphor for the ursine intransigients, but I guess the scepter-malleting depicted above will have to serve as an able “second best.”  

He is making the Sheriff a “KNIGHT” after all, right?

Too unsubtle?  Pity. 

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More of the same wanton winning today, even as my activities in The PPT were relegated mostly to assembling one single ginormous call position in [[GDX]] .  

 I sought “deep-in-the-money” leverage here, purchasing the December 39’s and 40’s at $8.60 and $7.90 respectively.   I had to buy both at the ask, which I don’t like to do, usually.  However, I was unsuccessful with limit orders at lower prices, and did not want to wait another day, as I think GDX could launch again at any time.

I expect to hold these calls til near Turkey-Day, for what it’s worth.   I may shave some exposure if we have a large run-up earlier than I expect.

In other news, the “Killer Bee’s”  [[BAA]] and Beazer Homes USA, Inc. [[BZH]] continued to mint coin for myself and my compatriots in the bullion vaults of The PPT.      That’s just one letter of the alphabet in double digits…  I’ve another 25 in here ready to roll.

It’s been that kind of day in The PPT Wintocracy.  

 I continue to like IAMGOLD Corporation (USA) [[IAG]] , [[CDE]] and Silver Wheaton Corp. (USA) [[SLW]] for accumulation purposes here.

Tomorrow, I look at an interesting metal play starting with “A” — I think you’ll be intrigued.  

Until then, Slange (sic), and out.

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Did you take some action today? Were you nimble? Were you quick?

I’ll have you know today I, “Jack,” jumped many a candlestick, whilst running away from ex-Nazi dentists with maddeningly persistent, OSHA-oriented questions.

Did you?

I’m not going to mess around posting a bunch of charts, mostly as so many of them look the same with their one day reversal candles… but I’m going to say it here and leave it up to challenge. Today was a gift from the PM stock gods.

You see, today was the day “they” — the Operators — were going to shake the tree on all the trepeditious weak hands in the PM sector.  They were going to drive gold below $1,000 and then knock you over the head with a sockful of nickles to see how many positions you’d drop onto the ground for them to Hoover up.

And they were successful — to a point.  They were able to force gold below the $1k surface for a little more than two hours of trading this morning (NYSE hours) before, like a dirty beach ball in the Coney Island medical wash, it broke out above the waves again and headed higher. As I type (11:15 pm), POG is almost $1008 again, and POS is approaching $17. I’m betting we see more recovery tomorrow.

The same thing that happened to physical gold and silver happened across the precious metal mining sector. Very rare was the singular breakout like our previously recommended Corriente Resources Inc. [[ETQ]] , “the Latina Beauty.”

No, most of our names offered instead outstanding opportunities to buy at deep discounts today.  Just pull the chart on any Jacksonian or other oft-mentioned PM name and note the reversal dojis as they roared to recovery, some all the way to the green.

And yes I took advantage, though I announced only to The PPT today, as I mentioned I would. And no, I don’t mean to torture you like Sir Laurence Olivier with a rusty dental drill, but… well…

You see, I think we are in trading this Fall in very opportune times, and I want to make sure the people kind enough to keep this worthy site going “in custom” as it were, are rewarded with first dibs on choice observations.

So please don’t think me unkind, but rather, think of me as merely giving you yet another incentive– by way of whirring dental drill– to at least take a peek at The PPT…  for your own “toothsome good,” as it were.

Here’s an (edited) log of my announcements on The PPT‘s famed User Notes today:

10:30 & 11:15 am— Bot 15k shares [[CVM]] @ 1.90 (blended)

11:03 am— Bot 40 Silver Wheaton Corp. (USA) [[SLW]] December $9 strike calls @3.60, (SLW @ $12.12)

11:45 am — Bot 1k more [[PAAS]] @ $22.84

11:51 am — announced “POG back over $1,000 oz. again, if you blinked you missed it.”

12:02 pm — announced a potential new flag break formation on Beazer Homes USA, Inc. [[BZH]] .

1:07 pm — Bot another 2k of BZH @ $5.75 (limit order placed at 12:10 filled)

1:22 pm — Took advantage of the huge discount in IAMGOLD Corporation (USA) [[IAG]] and added another 2k @ $13.66 right as it bounced off the upward sloping trendline.

1:36 pm — pointed out the (then 12%) breakout in Corriente Resources Inc. [[ETQ]] .

In addition, after the above purchases, I also gave a “preview” on three potential plays that I think are setting up, maybe as soon as tomorrow. And remember, this is the kind of thing that is happening every day on The PPT, and not just with my picks, but with trades, observations and analyses of every serious trader involved on these pages and elsewhere.

As a result, we’ve become near-Homeric in our collective winship. Grab an oar if you like, we’re off to Troy again tomorrow.

Slange (sic).

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Makeup bonus:  Just to prove I’m not an over-secretive ogre, I’ll divulge a non-PM tasty I’ve been eyeing.  Take a look at ANADIGICS, Inc. [[ANAD]] on a pullback to $4.75-.80 here.  I think it’s going places. Best to you.

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Thanks for waiting the whole day. Turns out you didn’t miss much on my “super-secret” pick of Beazer Homes USA, Inc. [[BZH]] today, although you might have been able to buy it at the lows of $4.01 had I mentioned it first thing like I thought I would. But let’s be honest, how many of you would’ve grabbed your cups at that point and drank deep of this possibly downswirling poisonous homebuilder??

That’s right, none o’ ya. Besides, I bot it at $4.21 near yesterday’s close (when I announced it on The PPT — are you subscribing yet??), so I don’t feel bad about letting you in on it at right around the same price.

Why Beezy? I have no idea, I guess the Inflation Gods are moving into even the crappy homebuilder space. The only thing I know is the charts are showing compelling interest and very close to “BTFO” levels at today’s close. Please to enjoy the following picture show… first the weekly for the price and volume overview:

Then the Daily to show the turtle head that caused me to take my “starter position” at $4.21

On top of this new pick, the Jacksons are starting to make noise again, with Silver Wheaton Corp. (USA) [[SLW]] and Eldorado Gold Corporation (USA) [[EGO]] making nice moves today.   Thompson Creek Metals Company, Inc. [[TC]] continues to be punished for the sin of issuing capital to Canuckistanian Securities Firms, may God curse their Yukon Cornelius beards to immediate dreadlocked disarray.    Soon, I will be forced to buy a tonne (sic) more.   We shall see.

My [[GDX]] call play is beginning to look nice as well, and I believe all will  be well with us if [[UUP]] continues to stay below $23.30.

Best to you all.

 

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