[youtube:http://www.youtube.com/watch?v=7WZ33w3B8Hw&feature=related 450 300]

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I hope you took Frankie’s advice last night.  When I went to bed last evening (I had an exhausting day), there were enough people wandering the iBankCoin desert wearing hairshirts and declaring the coming of Armegeddon that I thought I’d wandered into a particularly ascetic strain of the Stinkify Wall Street protest movement. 

But I put my faith in the machinations of the Great Machine — The PPT, more than I do the easily beclouded emotions of my fellow piker traders.  You see the Great Machine runs on blood of cold nanobytes and young trader stem cells.  It cares not for your fears and your worries any more than it feels like patting you on the back in your more elated or expansive periods. 

It feels nothing but the data.  And what’s curious about yesterday’s readings was not that we came off over “overbought” levels, but that The PPT “leveled off” at a certain point yesterday, and held fast over a period of increasing trader nervousness here and across the internets.   It certainly gained my attention.  Were you watching?

And that fastness in the mind of the Machine was telling us something.  Just as Timmah and his group of Eterno-Bears were rubbing their fat little paws together in anticipation of a plump pic-a-nic basket, the titanium hand of The PPT was wheeling back to strike a sharp blow to their tender snouts.  

Not so fast, little Bears… did you think it was really going to be this easy?

And truthfully, if we look at our long term signals, there’s not a lot indicating much of a correction in store.   For example, you think the Big Boys maybe had an idea about what GOOG was going to do?   Have a look at the $NDX weekly for a clue… It’s launched this week off both up-turning primary EMA’s, the 13 and the 34 week exponential moving averages.  It’s also got a lot of room to go on teh RSI and slow stochastics before it’s overbought. 

When the techs are that lively, it’s often a sign that the bull is not done goring his fat brother bear.   Perhaps this weekend I will extrapolate, if you so desire.

In the meantime, I still hold one last third of my QLD position, which I may have been too hasty to sell (but I had a plan to sell at $86, and one must stick to one’s plan, no?).  I also still hold a  small postition in SKF, which I will hold to as a hedge, through the rest of this roller coaster ride.

I also kept all my gold and silver positions, as they showed similar resiliance — that stickiness — that The PPT showed yesterday.   Also PPT related, the silver ETF went “oversold” ridiculously early yesterday.  That often portends a shallowness in the market that will soon be reversed.

Pay attention to sentiment, folks, but above all consult The Machine in these bear-colored times.   It will guide your hand and let you sleep at night.

Best to you all.

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Not to be disparaging, but I’ve felt I’ve spent the week with a squadron of flying goats.   There you are flitting from tree to tree looking for the best green shoots, ears up and horns out,  “baaaaahhhing” it up to beat the band.   

Chips stocks!  Cancer stocks!  Lenny Dykstra Car Wash franchise stocks!  Get ’em while they’re hot from the chute!

But why must you make your lives so difficult?  There’s no reason to search for rare buds in the top branches of the acacia tree when there’s plenty of bull grass right here on the ground.   Come down from there and take a look at the freshly scythed alfalfa I have gathered for you, my yellow-eyed friends. 

Remember our weekly $HUI chart from last week?

Well, look what’s happened this week…. Pop!

Can anything be more promising than that little green bud out of the consolidation zone?    And yes, we’re a little overbought here, and should be coming into some more resistance around 400 or so, but we should welcome that opportunity.  

After all my boy, it is a bull market — and maybe the only one you’ll see for years to come.  So relax some, take a load off, and get your nets ready.   It’s almost harvest time again.

This week’s Jackson Core Holdings Portfolio results were very pleasing, especially as measured against the indexes.   So have some nice goat cheese this weekend, and maybe try to pause a second whilst hoisting that relaxing beverage to remember those who have served, and especially those who have fallen in order that you could enjoy this great country.    Be well.

Name	5/8/2009	5/15/2009	∆	5/22/2009	∆
ANDE	$    21.50	$      21.31	-0.88%	$    23.34	9.53%
GDX	37.46	37.65	0.51%	42.05	11.69%
GLD	89.98	91.55	1.74%	94.45	3.17%
IAG	9.92	9.83	-0.91%	10.86	10.48%
MON	86.42	89.95	4.08%	86.61	-3.71%
NRP	23.39	21.29	-8.98%	22.21	4.32%
PAAS	19.35	18.66	-3.57%	21.42	14.79%
RGLD	39.90	39.97	0.18%	44.26	10.73%
SLV	13.79	13.77	-0.15%	14.50	5.30%
SLW	8.91	8.58	-3.70%	9.34	8.86%
SSRI	20.06	19.06	-4.99%	21.73	14.01%
TBT	52.24	49.13	-5.95%	53.57	9.04%
TC	7.98	7.65	-4.14%	8.64	12.94%
TSO	16.72	16.60	-0.72%	16.23	-2.23%
		AVG	-1.96%		7.78%
Name	5/8/2009	5/15/2009	∆	5/22/2009	∆
SPY	$    92.98	$      88.71	-4.59%	$    89.02	0.35%
QQQQ	34.23	33.37	-2.51%	33.54	0.51%
DIA	85.47	82.78	-3.15%	82.87	0.11%
NDX	1,394.16	1,355.11	-2.80%	1,363.17	0.59%
RUT	511.82	475.84	-7.03%	477.62	0.37%
		AVG	-4.02%		0.39%

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