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Silver’s lost its mind and is seemingly out of control.   It’s up another 75 cents tonight at at new highs in the upper $43.30’s.   Like a monkey that just had his rhubarb stick stolen, I’m standing here and continuing to sell into the whirlwind.

For example, I let loose another 600 shares of AGQ, this time at over $285.   I marvel at that price, as I can remember buying AGQ in the $20’s the first time around, and now you can make the downpayment on a decent Miami Beach condo with only 100 shares.  

I also sold more EXK, more MVG, and started selling SLW for the first time this year.  Last, I sold a large piece of my NGD, which had become cumbersome in it’s size, but is now more manageable.

Don’t get me wrong — I still have some 65% of my original PM positions, I just have a gut feeling, honed on many years of having that same gut knifed by this thinly traded murderous market, that it’s time to take some profits here.   Pigs get slaughtered, etc.

I will continue to look for a break here in the silver momentum.  I don’t expect it will very long when it comes, but it might be scary enough to shake some of our weaker hands.   I will look for more opportunities to divest into the whirlwind tomorrow as well.

My best to you all…

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As beautiful as silver and gold are, you cannot eat them.  No, not even the Wonka Bar wrappers or the Hershey’s Kiss coverings you’ve meticulously assembled into a quilt for the spare bedroom.

No, since they are only useful as “stand-in” for a much poorer form of currency, one can only use silver and gold as placeholders for the more awful green stuff that we can then exchange for our MACDonalds (sic) greasy burgers and large fries.

In other words, sometimes you have to sell– even the good stuff.   So why not, then,  cash a little in when things are getting a bit overstretched?   Especially in the instance of a number of our small silver miners.   EXK is one of my favorites, for instance, but even I can’t turn a blind eye to the recent break out of the triangle and (as I’d predicted) parabolic advance immediately thereafter.  Now may be the time to scoop a bit of cream off the top… just to make sure you have pizza money:

I think we blast through $12.00 tomorrow, and I do believe I will take off one sixth of my position when that happens, ensuring myself beer money for the weekend.

I also think AGQ and some of the other miners are in similar rarified air.  I may shave some off of those as well.

If I have some money left after many a frosty bottle downed, I may even grab some more of IAG, as I believe it’s months long “saucer” consolidation is at an end and it will soon be headed to $30, and more:

Note the above is a weekly chart, and that’s a long time coming chart if I’ve ever seen one.  I also see similar breakout potential in both EGO and NGD, the former being more immediate than the latter. 

I will try to post some more chart looks tomorrow.  There’s a lot to be excited about.  Play safe.

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[youtube:http://www.youtube.com/watch?v=iCQ0vDAbF7s 450 300]

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Rock your socks off like a blazing set of gold & silver monkeys!

ANV?

AAU?

AGQ?

AG?

Folks, that’s just the “A’s.”

Heck, that’s just some of the A’s!

LOL.  Hang on, and keep your hands inside the compartment at all times.  These are historic times, and I’m glad you’re along for the ride.

Watch as long suffering junior golds like RBY, EGO, IAG and yes, even NGD, roar forward here.

Back on the road again tomorrow, but I’ll try to check in tomorrow evening.

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You probably think I’m being metaphorical and yet you’d only be partly right.  Actually, I am drinking from the NCAA Golden Cup this very evening.  You see, for the first time since I’ve been participating in the Big College Hoops Tournament pools, I’ve won my whole pool prior to the first Final Four game being played.  Ridiculous, but true.

How, you ask? Well, it’s largely a consequence of this utterly fuktarded (excuse my bastardized French) 2011 Tournament, where not only did none of the #1 Seeds not make it to the Final Four, but none of the #2 Seeds did either! Sacre Bleu, if I weren’t crazy enough of a homer to recognize the latent maturation of the Kentucky Wildcats’ mostly-freshman team, I’d have had picked zero Final Four teams.  As it is, I picked one, and that proved enough for me to win a large amount of money.

Sometimes life is not fair for the other guy, and I recognize that with humility. I will therefore buy the drinks for whomever is going to pitch a “Go Cats!” party this weekend, using my dirty winnings as salutory payment.

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On to the Golden Cup itself… Zombie asked for a “gold and silver update,” and while I scoff at such short term imprecations, I will humor him in appreciation of his long time one-liner hilarities on our collective blogs here.   My analysis will be based on the chart of the stodgy gold ETF, GLD, which I’ve owned for years but speak little about.  It’s part of my “core,” and therefore almost forgotten in any analysis of my day to day trading interests, as I’ve not interest in selling any for some time now.

That said, GLD’s chart can provide some insight onto the future movements in the precious metal environs, and particularly, the miners.   Note, that despite the great success of the miners recently, GLD has had some trouble breaking free of the $139-140 levels as illustrated below?

Note that since November, the price of GLD has flirted with that Maginot Line of $139, and only recently– in early March–  has it breached the promised land of $140 and higher?   We know our friend Mr. CANSLIM, William O’Neil, will quickly tell you that a higher right side of the “cup” in a “cup and handle” formation, is exactly what we should be looking for to best take advantage of an accelerating price situation.

Well, it seems that’s what we are looking at above, and what’s more, it seems the “handle” Mr. O’Neil is so fond of has also appeared over this last month.   Right now, the dollar is struggling to maintain it’s seemingly false Friday gains, and gold and silver seem to be shrugging off any attempts to sell them down.

That tells me, along with the chart above, that we haven’t long before we get a firm break of the $140 level.  I believe that will “bring down the house” so to speak, in terms of actively traded gold stocks.   While I continue to like silver, I think this week will belong to the gold flavor, like the rapper with the gold teeth and the big clock.

Oh right, that’s all of them. 

Carry on, won’t you?  I like NGD, AAU, IAG, IVN and of course ANV, here.

My best to you all.

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[youtube:http://www.youtube.com/watch?v=9QS0q3mGPGg 450 300]

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Even without 7-gram rocks, we’re still winning.   Meager pullbacks in silver names like EXK and PAAS represent new chances to “win,” and nothing less, as stalwarts SLW and SSRI were up along with most goldies.

Meanwhile tonight we’ve witness the rarest, yet greatest chart formation known to homo traderus man setting up… the infamous “Winking Friar Super Bullish Formation.”  Note the rounded head and fine Romish chapeau? 

Now, note the wink and the winsome smile on this knowing cherubic Papist?  All this good cleric says is “Wining with NGD!” 

Now just go.

Go, and sin no more!

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[youtube:http://www.youtube.com/watch?v=2m2FIQzal9U&feature=related]

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The knock-out makes the fighter a star, but there’s a lot of steps leading up to the fatal punch, that money maker.   It all starts with foot-work.  Ali had the greatest footwork this side of Sugar Ray Robinson, and he defined footwork as a defensive weapon in the famous rope-a-dope strategy, that combined an amorphous passive-aggressive upper body roll with a sly shuffle-dance against the ropes that literally sucked the power from the brutish giant, George Foreman, on that signature humid night in Zaire.

I advocate a similar strategy to assist in absorbing the brutal retaliatory flurries that will inevitably arise from this tidal bull we presently enjoy.  Roll with the punches.  Bleed some shares if you must — 10%, maybe even 20%.    I would not go beyond 30% at this juncture, however.   Keeping cash on hand is one thing, keeping too much of the nasty stuff and missing the rocket launch that is coming is another.

I hope this post will be timely, if in fact today’s hesitation leads to something more stomach churning.  Most important is that you do not lose your focus while the roller coaster whips you about.  

In the end, you must ask yourself the rational question:  Has any single component or fact set changed in the paper money destruction thesis?   If not, you must carry on to the predictable end.

Hint — We’re not there yet. 

EXK, SLW, PAAS, MVG on silver.   IAG and ANV and RGLD on gold.  AAU and NGD and PGZ are for your higher risk plays.  All of these on the expected dips in the next few days.

Pax.

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