[youtube:http://www.youtube.com/watch?v=ZfINBYmGD1A 450 300]
___________________________________
I don’t often talk about the University of Kentucky on this site, being a “mostly” Louisville Cardinals fan (and they don’t like it much around here when you’re “both.” You might as like to try to “borry” from a man’s still instead). However, UK freshman, SEC “Player of the Year,” “Newcomer of the Year,” and quite possibly #1 NBA draft pick John Wall makes for a nice metaphor for today’s dollar discussion.
Wall, while deified in the Blue Grass for his eye-popping offensive talents, is going to be the number one (or #2, his teammate DeMarcus Cousins may go #1) draft pick because of his defensive capabilities, which are sometimes similarly eye-popping. It’s arguable, for instance, that he beat Vanderbilt at Vanderbilt all by himself with a last second shot block on a dead-eye three-point shooter, followed by a clean pick of the ball right from said startled shooter’s hands.
What’s that? Of course Youtube has the clip!
[youtube:http://www.youtube.com/watch?v=EZzXhhd6CRA 450 300]Pretty spiffy, no? You don’t see that kind of instinctive defensive thinking in a lot of freshman.
And that kind of defensive, er… “wall” brings to mind our old weekly dollar chart and the “fib wall” we’d identified as going to be a tough area to breach. It turns out, the 200-week exponential moving average (“EMA”) served as a barrier as well. Look at the slow topping we’ve seen here, keeping in mind this is a weekly chart:
I think this bodes well, at least in the near term, for our commodities “risk trade,” and especially the precious metals, which are perking up quite nicely this morning as the dollar (DXY) drops below $80.00. [[AGQ]] is taking all it’s friends out for a champagne party, and purchasing them Norma Kamali handbags. Fellow silvers [[EXK]] , [[CDE]] and even rag-tag Hecla Mining Company [[HL]] are also again off to the races. As always, the best name in silver is Silver Wheaton Corp. (USA) [[SLW]] . On the gold side, you know my favourites (sic) but NovaGold Resources Inc. (USA) [[NG]] is really picking up steam as it matures here.
Keep an eye as well on our dollar proxy [[UUP]] , which we’d like to see stay below $23.60 for our shiny metal dominance to continue.
On top of our usual metal trades, it seems that the regional banks [[KRE]] are also back on thier horses. You know I love BB&T Corporation BB&T Corporation [[BBT]] as a long term hold, but don’t be afraid to grab a little Fifth Third Bancorp [[FITB]] and Huntington Bancshares Incorporated [[HBAN]] here as these “Ohio chancres” will someday soon be able to cover up their cold sores and sashay out into the bank M&A saloons once again, all a-flooze.
Last, don’t forget about Elite Eight pick Cree, Inc. [[CREE]] which is still getting its wind back (thankfully, so is SanDisk Corporation [[SNDK]] ) and it’s sister Veeco Instruments Inc. [[VECO]] , which has really been gaining some nice ground recently. I like both as hedges against future “Inflato-rama Drama.”
My best to you all.
_____________________________
Comments »