Omm Nom! Nom! Nom!
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Looks like Mr. Limm and kin are trying to take away our punch bowl.   Not bloody likely, I say.

You see, the Chinese really only have one way to cauterize the inflation wound they are already seeing in their economy — and that’s by removing themselves from their peg to the U.S. dollar.  They can make all the noise in the world about raising reserve requirements and dampening loan growth, but they will will still strain to be heard over the “clack-clack-clack” of the U.S. Mintex 3ooo Printing Robots in the basement of Ben Bernanke’s Transylvania Castle.

I say, if the Chinese refuse to de-peg their currancy and let the Yuan run free, naked and untethered, they ought to just continue to get drunk and buy stocks.    It’s the only rational thing to do when you are allowing your currency to be devalued right along with that of the Great White Ghost across the Pacific.  

And let’s face it, there’s only so much iron ore, coal, copper, lead, zinc, chromium and every other heavy metal for industrial usage left in this globe.   Outside dredging the Hudson River, that is, but even that reclamation project is years away.   The Chinese know all this and realize the only way to keep those prices cheap to them is by miming along to the dollar prop story.  

Again, raising Chinese reserve ratios is not going to do that if Helicopter Ben is easing quantitatively as fast as his machines can print, purchase and store massive haystacks of U.S. cabbage like he is.   We all know (and yes, the Chinese leadership knows) that fast cash to you is just heading right back into the Chinese economy via click-bought and big box consumer goods purchases (oh, and look here, retail sales are strengthening… wonder where those goods are coming from?).  What’s more, that money, once washed up on the shores of the South China Sea has to go right back into the commodity markets as the Chinese continue to build out infrastructure and purchase raw materials inventory.

Here me now and believe me later — The Chinese cannot “whip inflation” by themselves while they are tied to the dollar, and while their growing economy is tied to our consumption.   These are infrastructural realities that are not going to change because the Chinese CB has decided to take a stern line on lending reserves.  So sorry.

My take?  Eat a samich (sic) this morning until at least 11 am to see where the market settles out.    Gold is currently down only about $16 (less than 1.5%) and silver, as usual is taking it harder, down 44 cents (2.8%), with the DXY at a current $80.64.   I continue to believe this is a shakeout, and that the dollar will not continue much higher than here, despite all this “nooze” circulating to keep it propped.  If we break much above $81, however, I will be forced to reassess, and perhaps take a little off some of my riskier metal plays.

Best to you all.

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Update:  I notice in my haste to get out this morning’s post that I neglected to give you a run down on yesterday’s purchases (which were recorded in real time on The PPT, of course, as were today’s).   Yesterday I added to the following positions:

2k Petroleo Brasileiro SA (ADR) [[PBR]] @ $40.60

4k Exeter Resource Corp. [[XRA]] @ $8.46

2k Eldorado Gold Corporation (USA) [[EGO]] @ $12.66

2k Thompson Creek Metals Company, Inc. [[TC]] @ $12.67

10k NGAS Resources, Inc. [[NGAS]] @ $1.62

1K Sociedad Quimica y Minera (ADR) [[SQM]] at $37.06

This morning’s purchases (also “adds”):

2k [[PAAS]] @ $21.75

4k Gold Fields Limited (ADR) [[GFI]] @ $11.75

 

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Leonard Marshall (#70) Disposes of Joe Montana
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It’s been a long while since I’ve talked about Chesapeake Energy Corporation [[CHK]] , but as I’ve stated, I think 2010 will be the year of the gas giants.

As you can see on this weekly chart, CHK is starting to break out into some free-air territory after a long way back from it’s CEO-stock liquidating days back in the Dark Times (ie, December of ’08, a bit more than a year ago).

In my “best of all world’s” scenario, I’d like to see CHK break through 30 with some volume, here, perhaps after a short pullback or consolidation. Barring that, I’d like to buy at a retest of $30 itself, which is the beginning of my free air scenario. As you can see, this thing has a lot of room to run, so I’m not going to feel badly about missing the first buck or two.

I also like ConocoPhillips [[COP]] , Apache Corporation [[APA]] and NGAS Resources, Inc. [[NGAS]] here, under the same cautious parameters. [[UUP]] is holding fast here at that $22.90, so all theses continue to hold true.

Best to you all.

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I’m stepping away from my treasure horde here for a minute in order to evade the ennui of large numbers. There’s only so many bricks of bullion you can stack before you need a Pappy and an Advil, after all.

I wanted to revisit my old Bluegrass friend, NGAS Resources, Inc. [[NGAS]] — of Lexington, KY. Remember this chart from a couple of weeks back?

Well things haven’t changed much, save for the turn of the coil for one more opportunity towards advancement.   You can see the running along the 20-day MA since my last post, but today we closed above the 200-day MA for a second time ($2.31).   Here’s today’s close:

Given that NGAS has turned north again, and that we are experiencing a rising market with a dropping dollar along with rising oil price, I think the next days may reveal another opportunity to add as the days grow chillier, and the leaves colour and drop.

I will address additional entries in The PPT with the cohort there.   Right now I’m at a “one-third” position, and plan to add at least one more third in the coming days, if price unfolds as I think it will.

Best regaurds (sic).

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“Buy! Buy! Buy!  Booooo-yaaahh!”

I’m going to give you a night off from the precious metal plays, since you shouldn’t be squeezing your head like an overipened melon about those picks every day anyway.  Relax and have a clove cigarette or something.

Stop obsessing about [[EXK]] and come look at what I have over here, damnit.    And Capricorn One, you petty thieving third tier somnabatch… don’t think I don’t see you over there in the corner taking notes.   You’d better at least change the title of the post on this one … goat faced fugger.

First up, a stock I got “amped to” by none other than Johnny C. Lee, back in the bad old days of early summer, when it was in the sixes and he was “renting” it for the day.   I liked his  [[CAR]] so much I just kept it, and it’s been blowing Benjamins at my feet ever since.  

I think you can see from this daily chart, why I think that after today’s action, it’s getting ready to start running those printing press again like The PPT during earnings season:

 

“Treat #2”  (or is this one a trick?  I can never remember) is an old favourite (sic) of mine from down Bluegrass Horse Studdin’ Way — Lexington, Kentucky.   Rather than pay rednecks to stand around and watch horse-on-horse action, however, this enterprise NGAS Resources, Inc. [[NGAS]] pays Bill Daugherty and company to punch gas holes instead.

You may recall this company’s egregious summer financing, which had many a PPT and piker player crying in his suds.    Well, recent volume buys have signaled — along with today’s nice 7%+ move — that it’s getting close to “go time” for this puppy as well.   Feel free to eyeball my latest graphics efforts on aforesaid Two Buck Chuck —    $2.50 is where I’m buying, maybe as soon as tomorrow:

Go forth, be fruitful, and multiply thy Benjamins.    I may throw one more treat out intraday tomorrow…. or maybe just to The PPT… we’ll see.   Beazer Homes USA, Inc. [[BZH]] looks ready to get going as well.

My best to you, even to the pikers.

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Allright, that’s enough of this Barack Obamacare bashing. For now.

Let’s all remember what this blog is about after all, which is sound money market plays. That stuff can’t work out without a crapload of bad government policy to destroy the currency for our benefit. So let’s all take a minute to thank Barack and Nancy and the whole group down at the Fed for the opportunities they’ve apportioned us.

And here’s some more that I think may be burbling to the surface this very evening… First it looks like the coal stocks are catching a whiff, so let’s not forget about the Jacksonian dividend payor — Natural Resource Partners LP [[NRP]] .

Next I’ve got some fun junior golds that I think are ready to take off, not unlike last night’s recommendation [[CNXT]] did today. The first I’ve talked about for many months, and it’s one of my favourites (sic) of the junior miner variety — and here’s Allied Nevada Gold Corp. [[ANV]] ‘s weekly chart:

Looking for a flat side breakout (up) here, with a little additional volume. $9.00 should be the safe zone.

Next is [[BAA]] , which finally got it’s mojo going today. I think a move over $2.14 is the second stage of this story:

Last, an old friend who may be indicating good news (finally) for the Brotherhood of the Natural Gas freaks (like Fly’s Flotek), is Lexington, KY-based NGAS Resources, Inc. [[NGAS]] , which is showing a turtle head pop-out of the downtrend:

Last, the silvers look like they are going to make another run, so keep an eye on the silver Jacksons Silver Wheaton Corp. (USA) [[SLW]] , Silver Standard Resources Inc. (USA) [[SSRI]] and [[PAAS]] . Also platinum finally started getting off it’s keyster today as well — I use the ETF [[PTM]] to invest in that precious metal.

Remember to write your Congressperson about keeping their hands off your private, well supplied healthcare system. Don’t let them kill the goose that’s laying the golden eggs for us and the rest of global health. Best to you all.

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