Zut, Alors!

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Some of you may wish to take this opportunity to weep like a disgruntled Maginot Line engineer a week after the Blitz (see above).  

That’s right it’s crying time again.   That time when the gold and silver bulls that as of late have been so docile and yielding of fresh milk (as far as you know) have now grown into raging Tauruses (Taurii?), trampling your bloated carcass and rifling your pockets for loose Good & Plenties.

But let’s check our calendars shall we?   Has Sinterklaas arrived already, muling his burlap bag of kittens and freshly polished wooden clogs?  

Has Mother already placed a large roasted poultry on the dusty “for guests only” dining room table and surrounded it with gut-stuffing, cream-embossed ancillary vegetation  seen — thankfully — only once a year?

For that matter, have even any cleverly disguised neighborhood brats beaten on your manor door, claiming King’s Right upon any nougat resident?

No?

Well, then, heck — go order a Kung Pao or something.  Take the day off.   Feed the birds.    Go have a pigeon sandwich with pigeon sauce on the side.

Or if you’re of a mind, and have recently grubbed some coin selling an egregious biotech hand grenade with your one remaining three fingered hand, see if there aren’t some glittery bargains out there you may have missed the first time around.

Caution — nothing’s really much of a bargain, valuation wise.    To buy here you’ll have to accept the thesis that we are “dollar unhinged” at this point, and that gold and silver are going quite a bit higher.   If you’ve been with me since inception, you’ve probably bought into that much. 

We’ll look at the dollar later tonight.    There will be a low and a rebound, but I don’t think it’s coming until [[UUP]] is down below $22.00.   That said, we’ll remain cautious.

There’s not a ton out there that I’m eyeing to add, but that’s only because I’m so “jug full” at this point.     I  continue to think the silvers offer the best opportunity, so I may want to look at the double POS(ilver) [[AGQ]] .

I also think [[PAAS]] is an opportunity here, thanks to yesterday’s sell-off on the merger news.  

[[CDE]] is hardly taking a breath (and I forgot to include it in yesterday’s list, my bad).  

 Silver Standard Resources Inc. (USA) [[SSRI]] has been lagging, but it’s known to catch up rather quickly. 

  Silver Wheaton Corp. (USA) [[SLW]] is of course my favourite (sic) silver,and don’t forget mighty mite [[EXK]] .

On the gold side, my current favourite — and non-Jackson — Allied Nevada Gold Corp. [[ANV]] is pulling back here.   I also like Yamana Gold Inc. (USA) [[AUY]] and [[BAA]] on this pullback.    

Of the Jackson golds, Royal Gold, Inc. [[RGLD]] is “the one” I choose above all others, thanks to its royalty leverage.   IAMGOLD Corporation (USA) [[IAG]]   and Eldorado Gold Corporation (USA) [[EGO]] have also been champions and will see the 20’s by Christmas, in my opinion.

One last thing, platinum is really picking up after lagging here, and I think  [[PTM]] is very close to “BTFO”  in the $16.50 area.   This is one to have in your portfolio as a “core holding” along with [[SLV]] and [[GLD]] , in my humblest opinion.

That’s enough for now.   Go to the boulangerie and weep over an anisette and black-black coffee.

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I’m really juicing my returns!

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I know, I know, so few of you even watch baseball anymore… It’s more than likely that this reference is something of a stretch.

Better I should stick with the metaphor of football, with its place of honour (sic) and royalty amongst great American sports, and it’s apt illustrations of long bombs and crashing sprints to the goal line.

But for now, humour (sic) me, and act like you know what I’m talking about when I describe an increasingly obscure sport played by men in tight knickers carrying large whittled  pieces of timber, who seek to knock a tightly wound and sewn sac of leather onto a perfectly mown lawn, preferably with no interference by opposing knicker-clad men who have handicapped themselves with enormous envelopes of leather appended to one hand .

It’s not unlike “the jai-alai,” in that respect.

In recent years these men, perhaps grown jealous of their larger athletic compadres playing in the NFL, have taken to augmenting their physiques with such muscle enhancing chemicals as horse hormones and testicular steroids.    One such famed participant was Mark McGwire,  a now near-forgotten and disgraced performer for the St. Louis Cardinals, who put on so much additional mass via home chemo-therapy that he began to resemble the famed Michelin Man of French tire hocking renown.

Then he broke Yankee Great Roger Maris’s single-season home run record and marked the beginning of the end for American baseball.  

But enough of that funeral oratory, as I only bring up Mark McGwire to remark upon how easy it seems to have gotten to knock home-runs in the precious metal space.     So easy, in fact, that I remarked in The PPT yesterday that it was like watching the aforesaid McGuire hitting warm up fungoes in batting practice, or better yet — easily winning the Major League All-Star Game Home Run Derby almost every year he entered it.

But in the market, things are not supposed to come this easily, and so my mind has strayed to areas of oncoming resistance much like a hobo seeking lights at the far end of a train tunnel.   Remember, there will be pullbacks, and I think our friend “Baby $HUI”can be our guide again in this regaurd (sic):

My best guess is we run to that first line of resistance as depicted on the weekly above, and then fall back to the trend line.   So if you are looking to unload phat options positions that have grown unwieldy with greasy profits, your window may be approaching.

There’s also a chance that the dollar dumps with the ferocity of an aging bull elephant beset with cholera.  If that happens we may run all the way back to all-times highs as featured on Saint Paddy’s day of 2008 (and illustrated in red above), when oil was peaking at $147 a barrel.   

 Word to the wise — oil is half that now.  Act accordingly.

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For specifics, silver is still lagging gold, which as we’ve discussed, has broken to all time highs and is now over $1,061 an ounce.   Silver remains below $18, and it’s all time high is  $49.45an ounce.      That’s why I’m on those stocks like Woodshedder on a corn-dog. 

In order of immediacy,  I like [[PAAS]] on the sell-off, Silver Standard Resources Inc. (USA) [[SSRI]] on the pullback, [[EXK]] , Silver Wheaton Corp. (USA) [[SLW]] and finally the dog, Hecla Mining Company [[HL]] .

Also, on the gold side, I have to make a shout-out to favourite Allied Nevada Gold Corp. [[ANV]] and new The PPT find Exeter Resource Corp. [[XRA]] which is up about 25% since being singled out by The PPT early last week.

Last, I am accumulating [[TBT]] for the near inevitable rise in interest rates.  I added 1,000 more yesterday.

Best to you all.

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Great day for Pat Boone and friends… Pat looking on warmly with that glint in his eye, as opposed to the gleam he reserves for bad days, when his guitar strings break and he ends up beating Debbie and the wife.

Smaug’s Lair of The Hobbit’s late-chapter fame is a good metaphor for this market, if you are like myself and need metaphors to get you through the day like a nice semolina bread and head cheese sandwich at lunch.     The old treasure dragon from the Tolkien classic  signifies the danger implicit in this precious metal bull, and yes, maybe the greed, too.

So let’s try to remain cautious and harvest prudently when the corn grows high, whether by selling calls or taking our positions back a bit.  No need to be piggish and end up as dragon droppings amidst the mithril.

Only one chart tonight, and maybe tomorrow I’ll give you some new picks to augment my Jacksonian rockets (The Jackson Port ended today at 38% despite loss positions in both Monsanto Company [[MON]] and our ultra-hedge [[TBT]] ).

Tonight is a silver night, however, as my seven silver horses [[AGQ]] , [[CDE]] , [[EXK,  Hecla Mining Company [[HL]] , [[PAAS]] , Silver Wheaton Corp. (USA) [[SLW]] and Silver Standard Resources Inc. (USA) [[SSRI]] were up a combined average of 9.19% today.  

These miners will continue to perform as silver tries to catch up with already “BTFO” gold, which broke to new highs today.   As you can see with [[SLV]] , there’s still a lot of room for silver to grow up in this cycle:

More later tomorrow after yet another morning meeting.   Remember — be cautious with the sleeping dragon, lest he make a tasty canape out of your chitinous carapace. 

Ciao.

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“Buy! Buy! Buy!  Booooo-yaaahh!”

I’m going to give you a night off from the precious metal plays, since you shouldn’t be squeezing your head like an overipened melon about those picks every day anyway.  Relax and have a clove cigarette or something.

Stop obsessing about [[EXK]] and come look at what I have over here, damnit.    And Capricorn One, you petty thieving third tier somnabatch… don’t think I don’t see you over there in the corner taking notes.   You’d better at least change the title of the post on this one … goat faced fugger.

First up, a stock I got “amped to” by none other than Johnny C. Lee, back in the bad old days of early summer, when it was in the sixes and he was “renting” it for the day.   I liked his  [[CAR]] so much I just kept it, and it’s been blowing Benjamins at my feet ever since.  

I think you can see from this daily chart, why I think that after today’s action, it’s getting ready to start running those printing press again like The PPT during earnings season:

 

“Treat #2”  (or is this one a trick?  I can never remember) is an old favourite (sic) of mine from down Bluegrass Horse Studdin’ Way — Lexington, Kentucky.   Rather than pay rednecks to stand around and watch horse-on-horse action, however, this enterprise NGAS Resources, Inc. [[NGAS]] pays Bill Daugherty and company to punch gas holes instead.

You may recall this company’s egregious summer financing, which had many a PPT and piker player crying in his suds.    Well, recent volume buys have signaled — along with today’s nice 7%+ move — that it’s getting close to “go time” for this puppy as well.   Feel free to eyeball my latest graphics efforts on aforesaid Two Buck Chuck —    $2.50 is where I’m buying, maybe as soon as tomorrow:

Go forth, be fruitful, and multiply thy Benjamins.    I may throw one more treat out intraday tomorrow…. or maybe just to The PPT… we’ll see.   Beazer Homes USA, Inc. [[BZH]] looks ready to get going as well.

My best to you, even to the pikers.

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I just grabbed back all the [[EXK]] I sold yesterday for over $3.21 at between $2.88 and 2.90.  Let me tell you why:

Because it’s mid-September and it’s time to get your goat on.  

Listen, the next couple of months could be as dangerous as skipping around on the lower shelf of the Appenines right outside Roma.  So barring the requisition of a  bunch of high dollar mountain climbing equipment including Maui Jim Sunglasses and flashy ankle boots, you are going to have to harness your inner goat, ovah heah.

You see, EXK jacked almost 100% in three weeks.   As an owner, Mr. Goat, you just climbed Mt. Everest, congratulations.   Here’s the problem — you’re still on Mt. Everest.   What’s more, there are some nasty rockslides ocurring around you.

So be nimble, like a sure-footed billy goat, and be sensible, like Monsieur Le Fly.   Take some profits off the table on these 100% movers.   Sell some calls when things get extended.   Don’t be a pig.

Be a goat.

Last, if you haven’t yet signed up with The PPT, you may just be crazy.   Many many sure footed goats live there (and no trolls, imagine that?) that can help you skirt from Alp to Alp, twirling around like Julie Andrews in a mountaintop meadow, whilst wearing Lederhosen and blowing the Ricola horn.

 

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After all, this is why we are socking away wins for a rainy day:

So yeah, the Jacksons (up a collective 36.5% since May 1st as of today’s close) may be doing egregious “loaves and fishes” type miracles with your cash pile, but let’s keep our nose to the grindstone, as you’ll need that dough when a ham on rye, hold the mustard sets you back $36.25.

Remember we are all about dollar destruction here.   Take a look at that chart and ask yourself if the Congress and the Fed are going to support that kind of spending (not to mention the huge Medicare and Soc Sec liabilities) via the good old fashioned “belt tightening” of increased taxation and spending cuts?  

As they say in Texas, “No, hail no.”

So let’s be opportunistic and remember that there will be pullbacks in these metals, but that we need to manage our positions to maximize cash flow in this critical period.   For me that means selling calls at critical junctures, and even trimming the sails to raise cash from time to time.  If I’m reading things right, however, you are in for a bumpy, but enjoyable continuing ride here.

Keep in mind Rubicon Minerals Corp. (USA) [[RBY]] has broken to new highs yet again, and Allied Nevada Gold Corp. [[ANV]] remains a favourite pick.   I may take some leverage (ie, bot calls) off the table in Silver Wheaton Corp. (USA) [[SLW]] soon, as it’s run faster than it’s brother silvers by far, with over 66.8% returns since May 1st inception, while [[PAAS]] and Silver Standard Resources Inc. (USA) [[SSRI]] are only at 43.5% and 29.2% respectively.   I think SSRI especially will gain from here. 

On the junior level [[EXK]] continues to be a junior trooper, and I continue with a leveraged position in [[CDE]] as well, because of the acute lack of overhead.  I also own Hecla Mining Company [[HL]]

On the gold side, IAMGOLD Corporation (USA) [[IAG]] remains the monster of the pack, with 85.8% returns since inception, but I’d look for a pullback here before jumping in.   Eldorado Gold Corporation (USA) [[EGO]] and Allied Nevada Gold Corp. [[ANV]] still look like they can pack punch here, however, so keep an eye out on them and yesterday’s mention Gold Fields Limited (ADR) [[GFI]] .  

 Last, non-PM Monsanto Company [[MON]] grabbed back some ground today but continues to be undervalue in the Jacksonian sphere.   Still a “grandkids pick.”   The Andersons, Inc. [[ANDE]] –up over 106.5%  since Jackson inception — is still our leader, and looking for $39 as it’s next “achievment.”

I’ll have more tomorrow, but let’s shut it down with a veritable classic from my youth.   Share it with a favored son of daughter, and it’s likely they’ll never forget it:

  [youtube:http://www.youtube.com/watch?v=P7tQVEEPWv0 450 300]

Slange.

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