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Despite my adopted team, the Green Collar Jets, winning an improbable playoff victory over the hard-to-like Tom Brady Patriots this weekend, I am in full choler right now, due to the exigencies of hardware failure. I’m downstairs posting from the kids’ computer tonight because my trusty Sony Vaio has gone “Vaio (sic) con Dios!” on me, and seems to have left the station for that great electronic synapse farm in the Sky. I guess that last trip out to California was just too much for it.

Suggestions are welcome, as long as you do not recommend I purchase a Craapl.  I have no interest in seeking out a new career in fashion and design, thanks very much.

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I expect many of you — my more loyal readers — are already in the bunker due to my ample warnings over these last two weeks.   Many of you, however, resemble the man at the top of the page, and love The Funnel so much that you’ve fashioned special Funnel Hats to celebrate itscoming, and your imminent dive down it’s narrowing throat structure.

Well, the original man with no heart —Steve Jobs — just declared he was going on another Health Holiday, most likely so he can rendevous with the Mother Ship and pick up the next space alien technological doo-dad for Craapl, and therefore kick Bill Gates’ & Steve Ballmar’s asses with greater alacrity.  That also means the market is now free to sell off with great vim and vinegar.

Got your QID yet?  I’ve only put half of mine on, as planned.  I think tomorrow might be the day for the rest, however.

Meanwhile, back at the old gold mill, I have sold down to a comfortable level, and I continue to believe we will see a pull back in the 10-15% range off the recent highs.  That could easily bring us to $1,300 or less on the POG, and we all know silver likes to make gold’s price moves look kittenish in comparison.   As a result, I have even purchased some ZSL to warm the bed I’ve made for myself.   You should consider trimming your EXK and SLW and PAAS, for sure, and please get out completely from the AGQ, before you hurt yourselves.

What’s that rumbling you hear from my garage?  Why yes, it does happen to be my 12-cylinder dual cammy (I have no idea what the means) slung back black coupe FAZ-mobile idling in the drive.   I haven’t taken it out for a spin yet, but I will be eyeing the BKX with great interest, JPM “grande” earnings aside.    Heck I may even break out a bowl of Skiffles for my morning repast tomorrow. 

It’s been a while hasn’t it?   And yet, somehow… it just feels right.   

Remember the plan, now Funnelites.  The plan is to have cash to invest in this PM bull for the long run into dollar implosion.   That emphatically does not mean you play “long-only” for the duration.   You should have a core in store, but right now is not the time to be a hero.   Take a break, take a vacation, or better yet, move to North Carolina.   No need to make life any more stressful than it already is.

Best to you all.

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

A Fistful of Awesome!

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Yep, I went and did it again today.   I didn’t like the pin action in the price of gold, not to mention the dollar, and so hedged most of my major positions, including SLW, ANV, EGO and RGLD, with short calls, just slightly in the money, one month out (Novembers). 

I also trimmed my AGQ once again, selling another 400 shares at $104+.  I now have only a measly 400 shares left from my original 3,000.   We are retardedly over the 200 day moving average in silver, which just refuses to stand down, but AGQ will be a hard break when it does finally succumb to gravity, I’d contend.  

The good I see ahead is in the precious metals, big surprise, no?   That’s why I’m only shorting calls, rather than selling big chunks, though I did sell 30% of EXK yesterday, instead of selling the calls.   At prices below $5, however, and really even below $10, I see there being little difference in the price of a call, and the price of a stock, so I just sell the underlying to a point where I’m comfortable holding through the storm, and then I just hang on.

The bad I saw today, was in the bank stocks.  I thought at first that this mortgage gig was a smokescreen, readied by The Powers That Are  to scare some valuations down for coming bank M&A’s.   That thesis may still be correuct, but I was given pause by the action of the bank index ($BKX) today.   Observe:

 After all this hooplah since early September, you’d think the financials would have something better to show us than the above, no?   And yet, it’s looking bad for now.   I shall revisit my “possible takeover” thesis later in the year, as I still believe there’s a strong percentage still in betting on a flurry of acquisitions coming off at the end of this year.

In the meantime, I dumped the last of my BBT, FITB and even JPM.   I may buy back one of those after this storm has passed here, but for now, cash is better than banks.

The ugly is none other than the mighty U.S. dollar, which seemed to get it’s bounce today, off the $76.40 low area and is now almost 30 cent higher at $76.70.   

This bounce should give you an opportunity to consolidate some positions, and perhaps enter others.  I have my eye on more GSS, which is one of the few gold and silver plays that is not yet overbought.  But be ready to pounce with all alacrity on the whole universe, as this pullback may be short lived.

Or, not lived at all. 

My best to you.

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