And One for Le Docteur Who’s Sprawled on Butter Biers down le Lane.
I’ve scanned the bulk of the stocks that I follow, and save for the ones that have been ruthless stolen by my fellow bloggers, I do believe that BAA-BAA Black Sheep presents the best opportunity for profit going forward.
Note what I’d remarked earlier about this stock’s flirtation with $5.00, and how, like EXK finally did, it would one day break that barrier for once and all?
Well I believe that time has come. Come, see the violence inherent in the system:
And here’s the daily, which also seems to indicate we are on solid ground, and probably will not rest for another quarter or so…
I also like AUY, XRA and EGO here as soon as tomorrow. Lots of stuff will be popping, however, so keep your eyes open along with your coin purse.
Time and time again, I’ve stood here and recounted the reasons why I stay away from the large cap gold miners like AEM, ABX, NEM and even GG (though I do own a little of this one from the Wheaton Gold days). Sure, these are all fine old girls, but they often end up on the wrong side of an acquisition play which then ends up trashing their stock price in a volatile gold market.
That means these big hulks are generally buyers, for the most part, as their management team has little to do but acquire more assets in order to expand away from relatively diversified and well known properties. They need new territories, fresh blood, new meat; and the highest percentage way to continue drilling on profitable properties is to acquire them from juniors who have done the sweat work to seek them out.
Well, it seems my lonely EGO has gotten all egotistical on me and wants to be a “playah” like the big boys. No more holding it’s hand out as trade bait for the majors, Eldorado Gold is officially leaving the middle-market gold mining community in its dust and going gold speculating in Turkey, Greece and Romania.
Yes, you got that right. They’re offering $2.5 bn of their own stock in order to buy a company (European Goldfields) that is looking for gold in respectively, the next Islamofascist hot spot, the First Beggar of Europe, and oh yeah, a place known for producing pickpocketing gymnasts with facial hair and night dwelling blood suckers without.
That should work out well, fellahs. Probably very little nationalization risk you’ve paid for there….
In any case, these M&A purges usually overdo themselves, so my beaten down EGO is probably a good pickup here tomorrow morning after what I expect will be a final washout. There’s support at $12, but I’m not sure we’ll get that far. Nevertheless, I’ll place my bets in that area, hoping to catch a bounce.
Oh, and I think everything else will bounce as well. Most especially earl and gold. So tomorrow, if I get my flush, I’m going to throw down for some NUGT and for some ERX.
Don’t worry, my stops will be tight. I’m not a masochist, after all.
I have a daughter who was born in 2000. She’s going to a classmate’s party today, and you guessed it, the classmate is also 11, on 11/11/11. Pretty cool. Of course my daughter also knows kids that were in 10 on October 10th and 9 on September 9th, and almost all the way down the line. I guess that’s one of the hidden perks of being a Millenial Baby.
Of course all that fun ends next December on 12/12/12, which will not coincidentally also soon after auger in her first year of teenagerdom. Teenagerhood? Teenagedness?
In any case, I’d better gird my loins.
But let’s not lose sight of the importance of the Day itself, written into history in 1918 as the end marker of “The War to End all Wars” — WWI. Unfortunately that was a bit of hubris, wasn’t it? The very Treaty (Versailles) signed that day in fact set the groundwork for an even worse World War only a little more than 20 years later.
The study of history shows that human nature is cyclic, and that we tend to make the same mistakes, no matter our careful plans to eradicate them by mutually agreed consensus. There will always be those who seek to take advantage of said consensus, just as there will always be those claiming we’ve finally arrived at the “End of History.”
To expect otherwise in future is a fool’s game. We can only do the best we can, and improve ourselves individually and as a society by gentle consensus, and with a constant and humble awareness that we will backslide. That knowledge, that humility, will allow us to rebound all the quicker.
I would humbly suggest we hold then to our accumulated traditions, our respect for others, their person and property and our fealty to consensual agreement over forced autarchy. For these are the traditions that set the Free People of the West apart from civilizations of the past, and from the failed societies of the present.
But let’s also be most cognizant that these traditions are under fire from many quarters, and that in many cases, all that stands between them and the less enlightened cohorts of the past are the blood of those willing to defend their preservation.
So let’s raise a glass to our Veterans, and to those who carry the sword — voluntarily — into battle for our civilization today. And pass that good word to a soldier in uniform not just this day, but from this day foreward.
As I expected (was hoping?), the dollar gnomes have collapsed the dollar anew. This has led to some very nice activity in the silver and gold pits, with the kind of flagging (bullish) that makes my heart grow fond.
I will likely add here and there to my hordes today, and will let you know if I do. Right now I am enjoying strong moves in SLW, EGO, IAG and my various ETF plays, including the doubles AGQ and NUGT.
As always, if you want to toe-dip, start with the basics — GDX, GDXJ and SIL. Highest octane is in the crazy silvers, like my favourites AG and EXK. Today and for the next few days, SSRI should also be moving to make up for the plungerooni (overdone) yesterday.
Lastly, don’t forget about the “rare earth” plays like QRM and AVL for added dollar inflation pop.
My best to you all on this day of honour.
I made good on my threats today, and took everything down to the 30% level on my personal accounts.
I was up an average of almost 5% across a number of different portfolios and I finally said “enough is enough.” I am keeping 30% invested, with the equal expectation that we could hit a precipitous downdraft in the precious metal sector at any time, just as we could shoot past $2,000 gold in an eye-blink.
I care no more, as at this point risk avoidance has become very important to me. If that means I miss the next $200 in gold on 70% of my portfolio, well so be it. It’s very possible we could see a break past $50 in silver as well, and again, I’ll have no nonsense from any of you about it. Really, I mean it. Just shut up now.
And yes, that means I sold large chunks of AAU, AG, AUY, ANV, EGO, EXK, GDX, GDXJ, GG, MVG, NG, NGD, NXG, PAAS, RGLD, SIL and even beloved SLW.
And I blew out the rest of my NUGT as well.
And no, I am not abandoning the PM’s as a theme now, and won’t abandon them should they continue to skyrocket in flight to many more afternoon delights this late summer. I am willing to wait for them, however, and to examine “other areas” whilst they frolic about like mad sturgeon on lady’s night at the Aquarium.
One of those “other areas” includes my old friend, Mr. Skiffles — SKF. Along with his rebrobrate alchoholic brother, FAZ-tard, I believe Mr. Skiffles will be getting some nice exercise this second half of the year. One of the reasons is the behavior of BAC, and now, most recently, the troubles of GS, and it’s Waspy rival MS.
Another is the critical structural problems of Europe erupting again like plague boils on the carcass of its major banks. This is a contagion that may yet again bolt across the Atlantic and may even explain the impolite selling vigor in some of our larger institutions. Will the Fed be there to save their lying souls once again?
Too big to fail, you say? Maybe, but while “fail” might rhyme with “bail,” I wouldn’t be too sure equity holders won’t be left holding an empty bucket this time around. Be warned, friends, storms approach.
Today was a significant day for the silver miners. With the death of Prince Otto, the word was sent by carrier pigeon to Mr. Bilderberg and the Illuminati that they could once again indulge in the precious metal trade. Obviously they took that word to heart, especially in the silver section, with the more sedate Jacksonians like SLW and PAAS up 6.26% and 3.20% respectively, and the silver miner ETF– ticker symbol SIL– up 4.29%.
Even more stunning were the pocket rockets. Of course the double raw silver ETF, AGQ, was up almost 10%, but some of the small miners did even better. My second largest silver holding EXK, was up almost 12%, while AG and MVG were both up over 8% each. Even ANV, the mercurial Jacksonian gold stock, got in the groove, with a move of over 6.72%.
Even more promising was the chart damage today’s moves did on the silver bears. AG is the cleanest example:
EXK had a similar breakout today:
I love how these rockets are leading us up like they usually do. I am not, however “all in,” yet, as the $HUI continues to bedevil me by refusing to resolve itself. The 50-day still remains a micro-hair above the 200-day EMA and they are flattening to a needle point.
My one consolation is that we’ve finally closed above both key EMA’s at $528.42. That’s noteworthy, since we haven’t been above either one since early June. Stay tuned tomorrow for some follow through. I may even expend some cash. I’m looking at EGO and CDE to continue moving higher tomorrow and to the end of the week. My top pick for tomorrow, however, is GPL.
The last of the Hapsburg Empire has taken his leave. Harbor no belief that the positive action on gold and silver today is unrelated. As ancient and corrupt medieval empires crumble into the sea, the strongest of civilization’s institutions remain standing, anchoring our economic and social order.
Otto von Habsburg, who has died aged 98, bore the oldest and most eminent dynastic name in European history and could, according to genealogists, trace his ancestry back to the sixth century. The pretender to the defunct thrones of Austria, Hungary, Croatia and Bohemia (now part of the Czech Republic), he pursued a democratic postwar career as a member of the European parliament and a fervent advocate of European union.
A fervant advocate of European Union? Imagine a thwarted emperor advocating that? One wonders what Otto’s countrymen, Hayek and Von Mises would have thought of all that?
All of the Jacksonians and other gold and silver dreams are celebrating the Fourth Of July, seemingly independent now of the dollar’s flux, up over an average of 3%. Favored Jacksonian’s SLW, ANV and EGO are all up over 4% as of this writing, and EXK is up over 9%. Still, our friend the $HUI is having troubles breaking that near-term barrier at around $528, so we are not yet out of the Austrian woods, so to speak.