[youtube:http://www.youtube.com/watch?v=-dzpTFQR0Tg&feature=related 450 300]

Whatever happened to gay rap anyway?

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Today was kind of interesting, no? False alarm breakouts all over, and almost none of them held…

Save for the PM miners of course. Sort of like a… a… PM Dawn, no? I took my cue off the Baby $HUI earlier today, as it had gracefully touched the bottom of it’s trading channel and then sprung up like a coked out stallion loose in the mare barn.  True, it sold off some at the end of the day after that initial hop up.. but I still like the pin action.  Note:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Despite the long wick in that last candle, I like how there’s still lots of room to run on the RSI and the other stochs.   This puts me in the mind that we are seeing a genuine handle breakout here.   On this action, I doubled up on my XRA and BAA positions, as noted in The PPT today, right before lunch.  I also added to EXK, AG, GDXJ and SIL.   I even bought some more RGLD, just to add to that pile.

Some other nice movers today that I own, but did not add too (much to my chagrin) included AXU, ANV, AUQ, AUY,GSS, NUGT, IAG, NXG, etc.  Keep an eye on these for further developments tomorrow.

As I type, the dollar is below $77, Gold is well over $1,810 and silver is over $40, indicating the $HUI is steering us in the right direction.   Enjoy tomorrow, as I will be “road-bound” again, and checking in from remote airport locations & scruffy hotel bar rooms.

My best to you all.

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There is no Bernank, Only Zuul

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I don’t have a lot of time this morning, so I’m just going to feature the chart I put together last night.   As you know, I’m increasingly bearish here, and more so on the financial sector than any other, primarily because they are — like our internal deficit and debt problems — another can that has been kicked down the road.

Back in 2008, when the world was melting into a hardened polystyrene ball thanks to the implosion of the easy money real estate bubble, banks were allowed to escape (some just barely) thanks to the ministrations of the Fisc and the Fed via TARP and other more nefarious and clandestine sources.   Worse, Freddie Mac and Fannie Mae, the twin dogs of Zuul the Destroyer, were allowed to remain in their positions of power “for the good of the market.”

In other words, little was done in regard to true reform save “shoring up” for “the good of the industry and the economy.”    Bad mortage loans are still on many books, and real estate prices have been frozen in a glacial slide to the sea, rather than being allowed to correct in a more natural — if radical — manner.

Ironically, it is not those mortgage time bombs which will kill the banks in the immediate term, as the “propping up” methodologies of Congress, The POTUS and the Fed are actually hurting the taxpayer while assisting lame banks.  No, it will be the regulatory overkill administered in the fecal kludge which is Dodd-Frank Reform Bill, also known as “the second 2,000+ page bill that no one read before voting through.”

To give the Congresscritter some defense however, we can’t blame them for the criminal act of not reading the bill, since there were hundreds of pages of regulations YET TO BE WRITTEN found within its pages.  In my opinion, this is the far more egregious and unconstitutional sin.   In the case of signing a law that carried unknown legislative directives in it, Congress is yielding it’s power to an unelected alphabet soup of Federal financial bureaucracy.

Banks are just now beginning to “implement” some of the new regs.  You are already familiar with the loss of revenue due to debit card restrictions, but there are other capital and revenue limiting aspects which will also affect banks both large and small.

Ultimately, this will likely lead to another round of consolidation,which is what the cronies in Congress would like, as they loathe competition and it’s messy donation collection implications.   Until then, banks will be a mess, and I would steer well clear of them.   If you are adventurous like me, you might even take an interest in their downfall:

As you know, I added to my SKiFfles the other day, along with a position in TZA and more TBT (which remains a hair shirt).   What you don’t know, unless you are a member of The PPT was that I also loaded up on EXK, GDXJ and AG calls yesterday afternoon.

Yet another reason to look into a subscription for The PPT as soon as possible.  My best to you all.

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[youtube:http://www.youtube.com/watch?v=_qO66Rmi1Mw 450 300]

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I don’t know what’s going on, but it appears we’re about to be overrun by Viagra-popping leprechauns.   I’ve been buying some stuff back in drips and drabs but have been mostly waiting.  I added AUQ today and bought some more IPSU too. Both of those seem to be working well.  Meanwhile all the stuff I sold last week is doing aerobatics.  That’s annoying.

This is why we keep the core of course.  We don’t know what the bull is going to do… especially at these end stages.

I looked over all my charts tonight and there are quite a few looking like imminent breakouts.  These include AG, ANV, AUY, EXK and even — strangely — goofy old BAA.   Even GDX and GDXJ look pretty good, if you are into the ETF thing.   It’s our old friend the gold bug index $HUI that will provide the signal for me:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Most of those names in the chart above should break out with the $HUI index here, but I wouldn’t worry about having to pile in.   There should be pullbacks on all of them after the breakouts, so you should have ample opportunity, if you want to be cautious.

Besides the above, RGLD and NGD are rather stretched here, and I will be offloading some likely tomorrow on any $HUI break.

Best to you all, and watch out for midgets with orange hair, green vests and knotty chestnut shilelaghs.  Those fuggers will wield those beatin’ sticks.

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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.

Peace be upon you.

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[youtube:http://www.youtube.com/watch?v=a1iUKCFHWzg&NR=1 450 300]

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I finally broke down and watched my first Republican Presidential Primary Debate tonight.  It was still a struggle to pay attention, despite my “political animal” tendencies.  There were just too many flotsams and jetsams out there that needed to be weeded out to get the ball rolling a little quicker.  I assure you, I would take a paring knife to that list if I were the grand GOP Puzzlemaker, instead of just some mouthy guy spouting my opinions on a lightly regarded stock blog.

The two biggest losers tonight had to be former Minnesota Governor Tim Pawlenty and former U.S. Senator from Pennsylvania Rick Santorum.  Here’s the thing — could you even tell the two apart?  Yeah, I know Rick is the Catholic firebrand and Pawlenty is the cool laconic Lutheran (or whatever they are in Minnesota), but physically they are very comparable, and charisma-wise, well…. I find myself wondering how Pawlenty ever got elected in Minnesota in the first place.

Did his dad own a department store chain, too??

With those two nobodies yanked, the next to go has to be Newt Gingrich.  Smart, no question, but way too unlikeable.  His negatives have to be up there with Hillary Clinton, and its all reflective of the smug know-it-all defensiveness that characterized his every delivery tonight.   No, he’s gone, and please Lord, soon.

That leaves us with the ever entertaining pair of Ron Paul and Herman Cain, who, in a perfect world, would be named Benevolant Dictators of America, because you’re pretty damn sure neither of them would abuse the power.  That said, neither are really ready for prime time, even as both of them gave some of the best answers of the night.  I will never agree with Paul on a foreign policy basis, but I like his libertarian views on civil rights, etc.   Herman Cain is just a whip smart bidnessman and you know he’s honest to a tee — perhaps too honest to be in politics, unfortunately.

That Huntsman creep I don’t even countenance.  The guy worked for Obama for a couple of years and we’re supposed to hire him as Big O’s replacement?  I’m figuring that dude must have shitte tonnes o’ green to burn, because I haven’t seen that much of a no-chance candidacy since the terminally morose Ralph Nadar ran for the Greens.  Huntsman, you’re fired too.

That leaves us with the lovely Michele Bachman and der Mittster.  Michele is lovely to look at, and I really respect her convictions, but there’s something about her that seems a little too frozen.  Maybe it’s here eyelids?  I dunno, but it’s odd how she speaks at the tv’s like she’s reading from an invisible teleprompter or something.    I have to sadly conclude that if she weirds out a rock-ribbed conservative like me who supports much of her platform, she’s got less chance than even Sarah Palin in the general.

That leaves Mitt, whom, as you know, I’ve been cool on since he announced.   I want to like Mitt, because I have some friends who would lay down their life for the guy, and these are not idealistic schoolgirls, but experienced deal guys I’m talking about.  However, as you know, I just have a hard time getting around the whole Romneycare thing.  Well, after tonight’s performance, I began to thaw a little bit on old Willard Mitt.

I thought he gave some really nice answers on many of the business and fiscal questions, and I really got the sense that his calm confidence (contrasted against Santorum’s near-mania at times, for example) really are a nice fit for the current state of malaise in which we find ourselves enmired.

So, for now, I’m feeling like I could pull the trigger for Mitt.  But let’s see what Saturday brings, as I also have a soft spot in my heart for Texans and their way of doing things.  Perry could be the one, as well.

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As The PPT members already know, I dumped a bunch of silver and gold today, but not by any means a portion more than 25% of my horde.  The ones I saw as either ripe or annoying (IAG), I cut down first.   I ended up selling anywhere from 1/3 to 2/3rds of my stashes in AG, ANV, IAG, EXK and NGD.  I also got rid of all of the rest of my DGP and NUGT positions, just to take the leverage off.  I sold no SLW or RGLD, but I may get rid of some of that tomorrow.

In the meantime, gold has taken a little air out, and silver along with her, but nothing extraordinary has occurred yet.  I will be monitoring the situation through tomorrow afternoon and let you know what I’m thinking, if anything.

Best to you all.

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I already gave you this idea a few weeks back, but I wanted to bring my favorite Japanese gold play (not really), Yamana Gold (AUY), back to your attention.  As I mentioned in my last feature, this is one of the longest saucer-consolidation patterns I’ve seen forming in the gold sector since the March 2009 Recovery, and I think we are finally done consolidating and getting ready to launch with vigour (sic). Look at the weekly one more time:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note that the real breakout is probably going to be somewhere above $14, and you might want to wait til you see that number.  I already own some, however, and may add on strength tomorrow.   As I would with any long term consolidation in a bull, I expect AUY to launch quite nicely once it breaks out of it’s saucer pattern here.

Today I cut back on some over-weighted positions, as announced in The PPT.  That includes AAU, RGLD, DGP, some more NUGT and even silver star AG. I still have tonnes left in each of those names, btw.

Today I took advantage of Crazy Eddie “low, low, low” prices to nab some more UPS and TCK as well.  UPS is perhaps one of the most solid companies in the world.  It was on sale today so I added.    I also opened a new position in Borg Warner (BWA) which I have been stalking from much higher numbers.  I really like the auto supplier space.  There’s tonnes of activity going on in the Private Equity market there as well.

Best to you all.  I will be on the road again tomorrow but checking in.

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