This is good…

[youtube:http://www.youtube.com/watch?v=4wty7974IKg&feature=related 450 300]

This might be even better….

[youtube:http://www.youtube.com/watch?v=b8XVMU5obkc&feature=related 450 300]

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C’mon California!  The Giants have done the hard part and dispatched the Crackboys for you.   This leaves the NFL safe for Niner and Charger domination.   Who knows?  Even the Raiduhs are showing signs of life…

Now all you have to do is get rid of Barbara Boxer and reclaim one of the greatest states in the Union.

I know you can do it.  God speed.

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If you were on The PPT today, you saw that I added a tonne of metal back to my portfolio.   AGQ, EXK, GSS, IVN, RGLD, and even FRG were all added at favorable prices.

I also got rid of the last of my hedges at a slight profit. 

Last, I added to my PBR, my favorite long term earl play.   Yes it’s Brazilian, and someday it will be worth a Brazilian bucks to my family.

That is all.   Keep watching that dollar.   My best to you, especially those people in Kelly-Phonia, who can once again give direction to the U.S. with the right move here.

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Not my Yanks, that’s for sure
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Drawdown days are a bitch, I don’t care how well hedged you are. Some of my positions took 7 and even 8% haircuts today, but mostly that was the small ones. The bigger ones were hedged, so the bleeding was not entirely egregious. I was almost entirely out of my AGQ with only 400 shares left, so that was not a horrible caining I took even in that double slammer today, given I formerly owned 3k shares.

Word to the wise, the $HUI index is oversold already on the deep dive it did today, so I would not dwell long in the land of shorting this gold bull.  You are far more likely to receive  profitable thrills by waving your junk at a basket filled with hungry ferrets.

Of all the single precious issues out there, I like IVN and GSS to rebound first.  Don’t ask me why, just attend to my Spider Senses.   I also like almost precious REE, if it ever comes back down to earth again.  

In the non-metals world, I still love the Trannies and their strength here, relative to the scaredy cat sell off.   I especially love UPS, and you should look to add to this core holding if it can dip just a little below to it’s 50-day EMA at $66.60 or so:

RGLD is another core hold  you should be looking to glom here.   I will be adding to it, to ANV and to SLW very shortly. 

Watch the dollah!   More tomorrah!

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________________________

The $HUI, he is glo-rious. 

The Fly, he is un-der the bus.

The Man, he is Chuck Nor-ius.

You’ll lose teeth if you

Neglect to floss.

________________

Be at peace if you have no gold

This might not be the time to hold

Y’see…

The oscillators all grow old

And all my calls have since been sold.

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Check the graph if you have the mind

To see the $HUI crescent’s very rind

That’s flashed to me the warning sign

To take my nuggets off the line,

Chunk my Barca-lounger…

lever, and… recline.

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Now, as a caveat, I’ll have you know

If the buck stays under the weekly low

Price at $80’s recent undertow–

Then I’ll be next to risk a throw

On Sainted Saxon Knight…

Lord Ivanhoe!

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Good day to you, sir!

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Indeuuuuuuud!

 
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Monsieur Le Docteur (actual footage above) was toiling away in his mad scientists’ lab today in The PPT (located in a secure concrete and steel rebar-reinforced bunker buried deep beneath the last tree in Bed Stuy), and he came across a fantastic discovery that may very well account for the vast amount of winship I’ve been experiencing during this nine plus year secular gold bull.

Specifically, he reported this:

During all previous Oversold cycles (2.30 and below to 3.00) GLD traded up 85% of the time for an avg. return of 3.5%.  Best performer was IVN.

and even more curious, he finished with this additional information:

During Overbought cycles, GLD still went up 70% of the time for avg return of 0.76%

Could this be the very Grail that poor, waylaid Noble Sir Timmah was looking for?  The contrarian never-fail end to his troubles? 

I dunno, somehow I think he’d find a way to screw even this much up, but you never know.  Meanwhile, here’s IVN — the “oversold Tiger” mentioned above.   Ironically, I own little of this.  But then, I don’t high-volume trade much either:

Look upon the beneficence that The PPT showers upon you with the occasional freebie above.    Keep in mind, this is but one treasure from the horde of information waiting to be extracted from that pristine and beautiful engine.   How can you be so Pennywise a clown to eschew The PPT while risking a stark and foolish pounding?

Make haste, haste to give him laud, the Mage, the Fly of Harami!

That is all, carry on.

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Exchanging the Secret Handshake
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The guy on the right in the picture above is counting on the stupidity of his majority peasant populace to pull off one of the grandest day-time thefts in recent years — the 50% devaluation of his country’s currency by fiat Executive declaration. Like the crazed-with-power dictator in Woody Allen’s classic comedy Bananas who declared “All children… under the age of 16 years old.. are now…. 16 years old,” El Pizza Face above is “declaring” that every unit of currency (the “bolivar“) is worth one half of what it was worth yesterday… just “because.”   

What’s even funnier is he’s now saying that retailers cannot raise prices in response to this devaluation, upon pain of seizure.  How long do you think retail businesses can stay open charging 50% under cost of goods?   One wonders also how long even the economically illiterate majority of Venezuela will stand for such blatent skulduggery?   I’m guessing for about as long as the food stores hold out.

Meanwhile back here in this country, we’ve got that pesky Constitution getting in the way of any similar grand plans to immediately double the money supply.   But our leaders want to get in on the free-gov’t-money-for-votes-racket too,  so they’ve got to come up with more creative methodologies.  

Luckily, they’ve got a compliant Federal Reserve whose number one priority is saving themselves and the badly damaged fractional reserve banking system.   That means the Fed’s alleged “guiding missions” of maintaining low inflation and a high rate of employment take a back seat to the Darwinian imperative — “survival at all costs.”   This is good news for the dear leaders in Congress and the White House.

What’s more, our leaders have got the rest of the world using our currency as reserves.   That means, for this brief shining moment in history, our leaders can do what Hugo Chavez only wishes he could do — print fresh new bails of cash via deficit financing with little to no apparent consequence to our national economic status.

For now. 

But Mother Economics is even more of a caustic wit than Mother Nature, and much like these soi-disant world governors who are being served flaming slices of “Humble Baked Alaska” with these record-breaking cold temperatures, so too will our Congressional and Fed Capos reap multiple facial hatchetings to their long beards for this extended abuse of global trust.   The dollar may not halve in value over night like the Meatball’s Bolivar did, but it’s breaking down all the same.  

Today’s action has us back in the congestion zone again, which is a sticky swamp as of late.   This means good news for commodities and other real things as the clarion bell of inflation is being rung once again.   Answering the call is your one and only “Stock of the Year” pick Silver Wheaton Corp. (USA) [[SLW]] , now clearly BTFO’ing to new 52-week highs.   I like it on a pullback, as it has a reputation for filling gaps.

While [[GLD]] is moving up in a stately patrician manner, [[SLV]] and its turbocharged brother  [[AGQ]] are playing catch-up, and will likely out-perform in the near term.   Same holds true for the other precious non-gold varietals like [[PTM]] and the two platinum-palladium miners [[PAL]] (which is a rocket ship headed to the sun, Icharus-style) and Stillwater Mining Company [[SWC]] .

Don’t forget all the junior burritos I’ve given you in the past.   Allied Nevada Gold Corp. [[ANV]] , Eldorado Gold Corporation (USA) [[EGO]] and IAMGOLD Corporation (USA) [[IAG]] head the list, but the “Nth Factor” — NovaGold Resources Inc. (USA) [[NG]] , New Gold Inc. (USA) [[NGD]] and Northgate Minerals Corporation (USA) [[NXG]] are roaring too, along with Ivanhoe Mines Ltd. (USA) [[IVN]] , Rubicon Minerals Corp. (USA) [[RBY]] , Exeter Resource Corp. [[XRA]] and many others.   

If I had to pick another “launch to the sun” like Silver Wheaton Corp. (USA) [[SLW]] I think it would probably be [[EXK]] .   It reminds me of SLW in the old days.     Hold on to your capital people, they will try to appropriate it in multiple fashions going forward.  

Best to you all.

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There’s room for Every-frickin’-body!
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It’s quite likely I’ll be busy today, so I wanted to throw a couple of brontosaurus burgers out there for your barbecuing pleasure in case things get all jiggy like yesterday.

‘Cause, make no mistake, we are entering into primo deal season here, if all of my bidness (sic) radar array are working in proper function.  My group is busier than a one-armed Palo Alto Perma-Bear at a self-congratulatory back-patting contest, and if the middle markets are moving, then I’m going bet the big boys have more cooking than just Uncle Warren’s Train Set purchase yesterday.

For one example, look for deals in the edumacation business, for one thing — companies like Apollo Group, Inc. [[APOL]] and DeVry Inc. [[DV]] and Career Education Corp. [[CECO]] have all been beneficiaries of a sea change in education delivery in the last decade or so.  

However, I think the paradigms are going to change even more drastically going forward.  I am getting this intuition from the myriad start-ups and later stage deals I am seeing in this space over the last 12 months.   As a result, I’d look for tuitions at all but the most exclusive post-secondary schools to come down in the very near future.   As a father of four near-genius children, I couldn’t be more pleased.

That aside, I think there’ll likely also be acquisitions in the Precious Metalspace as well,  as the various hedged and non-hedged behemoths squat and mark their territories by gobbling up junior miners with promising cargoes of “ounces in the ground.”   

To my chagrin,  I have no insight from an M&A perspective, as the majority of that deal making occurs north of our borders in the frozen outbacks of Canuckistan, completed by cigar-puffing investment bankers wearing snow-blindness goggles and polar-bear fur pantsuits.

Therefore, I can only point you out the promising junior and middle sized firms that may be in the snowmobile screens of various behemoths like Barrick Gold Corporation (USA) [[ABX]] , Newmont Mining Corporation [[NEM]] , Goldcorp Inc. (USA) [[GG]]  and AngloGold Ashanti Limited (ADR) [[AU]] .    These include:

Golden Star Resources Ltd. (USA) [[GSS]]

IAMGOLD Corporation (USA) [[IAG]]

Eldorado Gold Corporation (USA) [[EGO]]

Silver Wheaton Corp. (USA) [[SLW]]

[[CDE]]

Hecla Mining Company [[HL]]

Exeter Resource Corp. [[XRA]]

[[BAA]]

Ivanhoe Mines Ltd. (USA) [[IVN]]

[[EXK]]

[[PAAS]]

Silver Standard Resources Inc. (USA) [[SSRI]]

Compania de Minas Buenaventura SA (ADR) [[BVN]]   ———->>>> note: this one can be an acquiror or an acquiree, given it’s geographic interest.

and of course, the “catch all”  — [[GDX]] .

There are quite a few more that I’ve left off as I’m rushing, so feel free to add your own, and I may or may not add or comment on those later.

Best to you all, and one last thing:  beware the bear traps — and those calling petulantly from within them.

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Update: In a shocking and unexpected move the dollar is down again [[UUP]] .

Who could’ve seen it?  Heh. 

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