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It seems Mother Market has decided to “take the piss” as they say in the jolly old UK, on my beleaguered soul today.   She drove the dollar up and the Amex Gold Bugs $HUI Index down to recent sub-optimal climes, while rifling my pockets for spare cigs and change for the jukebox.

I continue to call bullshit on she and her precious dollar, however, despite her mischievous manichean attempts to subdue me.    Because the dollar rolled today, only to see gold and to some extent, silver, remain unchanged.   I believe the reason the move was not taken altogether seriously is the amoung of overhead resistance the dollar will be limping into as early as tomorrow.   Note the base line “hold” (#1) and the three resistance lines (#’s 2, 3 & 4) fast approaching for the buck:

As a result of my decision to flail the dollar with a whipe of intertwined balogna skins today, I began adding more silver and gold miners this afternoon.  I did not add more AGQ, as I’d rather buy that on an uptrend, and escape its inherent volatility in an unsure market.   I did add, SLW, EXK, SSRI on the silver side, and NG, NGD, and AAU on the gold side.   Nothing extravagant,yet, mind you.   I’m  just pacing my way back into the game so I can blow cigar smoke at my nearest opponents’ wives.

SLW gives me comfort here, as far as today’s headfake.  Can you tell me why?

SLW is a must have in the port, ladies and gentlemen.  A must have.

Thanks again for all your kindness today, and I bid you adieu for now.

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And Just the Right Colour (sic), Too!

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It certainly feels good to stretch one’s wings once again, especially after a period of soreness and chafing, when the gold and silver markets pulled back in feeble, milquetoast fashion, rendering my hedges dull and feckless, and largely a waste of my time.   Luckily, I exited the remainder of my precious metal hedges today, and for the most part in the plus column (while my short ETF hedges were not), and the whole unpleasantness was avoided save for a more optimum re-entry price on a few select names.

As I previously stated, the dollar and the Amex Gold Bug Index ($HUI) were my guide in re-entering this morning, and the $HUI preceded the dollar in breaking that “roof” at $535 that has been plaguing us for the best part of a week.  I think today’s strong candle — on volume not evident in this chart, but in the individual names — gives we longer term players the assurance we need to be back in for the final ramp into Spring:

Note that upon the strong break this morning, I piled into AGQ with the gusto of a small ravenous narwhale amongst the migratory squid, immediately purchasing my first allocation (about one half of my expected total) without a limit order.  When things are breaking out like this, you always want to make sure you at least wet your beak so that you are not left behind in a tidal surge.   I also put in limit orders at this morning’s gap — and they never came close to being filled all day.   Tomorrow I shall try again for my fills there.

As planned, apres this break,  I also added to my considerable hordes in EXK, SLW, SIL and NGD.   As early as tomorrow I expect something of a pullback, but I will be adding at each opportunity.   Next in line is PAAS, AG, MVG and perhaps even CDE and HL.   I shall be as a fat suckling pig in a candy shoppe.   And no, I will not forget Prometheus’s gold — EGO, ANV and IAG will be added to as well, perhaps with IVN and AAU.

Scratch that, I just looked at the charts.  I will definitely be adding some AAU tomorrow.

Cheerio! Wot?  Your friend, Happy Jake.

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The pot is beginning to burble over to the extent that I believe we are approaching one of those periods where even the crappy little small time gold and silver miners will begin to shoot golden fountains of coyne (sic) out of their arses.  Tonight I offer two to hold until the 4th of July, at minimum.   In the penumbra of the rockets red glare, there ye shall banque.

I have a bunch of these in my portfolio both as “option” investments and as long term plays, and they are usually characterized by their “less than $10” price range.  

Like an undiscovered vintage of small California vineyard Cabernet, however, these little gems tend to be “unearthed” and then the real fun begins.  I remind you here, and tell you later — SLW, EGO, ANV, and even IAG were all sub $10 stocks less than 18 months ago.    I believe these two juniors, and perhaps also GSS, possess similar characteristics.

First, my current favourite (sic) in the small popper category is the lovely FRG.  After announcing a measurable find in their most recent presser on Monday, they have been somewhat “off to the races.”   I think the release was just an excuse for the baby to rally.  She’s been waiting a while:

You probably remember this chart from late April on my site… well now you can see it is on it’s way to new rocket heights.

The second name is NGD, one of the famous “Three N’s” along with NG and NXG.  I like them all, but NGD seems the most promising for the next month or so.  Have a look at the weekly:

(Shit!)

It’s just breakout out above long term resistance at $6.50 and you see my target of $9.50 in the short term.  

I’m holding it for much more than that, but that’s the way I roll.

Best to you all.

Keep watching the best of the best, too — SLW, ANV, EGO, IAG, PAAS, EXK, XRA, MVG, CDE, even GG and AUY.    If you want ETF’s there’s GDX, GDXJ and SIL for the miners and GLD and SLV for the solid stuff.

Live long, prosper.

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From Your Biggest Fan!
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Bon soir, mon ami, et Bon Anniversaire! I hope this evening finds you croque’d to the gills on your favourite Bordeaux or Gamay Beaujolais, if you will.

For my part, I intend to eat multiple sandwiches tomorrow in your honour (sic), as it seems like we may have to withstand another drawdown if this afternoon’s last minute plummet and tonight’s weak futures review hold course.

On the good news front, [[GLD]] and [[SLV]] hung on and look to be bouncing with more relative strength than the rest of the market. Some previously beaten down junior minors looked like heroe as well, including [[XRA]], [[GSS]], [[NGD]], [[FRG]] and my favourite, [[ANV]].   Note how ANV kept that uptrend intact on the weekly:

THe daily is less pretty, but still hanging in there:

Keep your eye on the quality, and on that weekly chart.  If we break that line, we will likely see further consolidation.  Right now, both gold and silver are higher even as stock futures look weak.   At some point we will likely see complete separation in trading behaviour.

Best to you all, mes amis.

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Avast Ye Steam-punk Scalawags!
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Looks like the bewigged and wedge-shoed scarlet coats of the Federal Admiralty have thrown down their first frilly gauntlet and taken a shot across our portside bow last evening with a cannon-load of “hot grape” called “quarter point discount rate increase,” in the less civilized quarters of New Orleans and other pirate dens.

Powdered pooftahs that they are, they are already begging our mercy come the morn as we swing our starboard cannon about to rake their pommy sides amid-ships.    Too late for them, and theirs, I’m afraid, as there’s gold in those Admiralty cargo holds and we mean to have it.

Let’s not get all a-sweat and a-lathered, me scurvy dogs.   The thesis has not changed and certainly the Fed is not going to take the “brave man’s step” of setting the Caribbean afire with rum-soaked English scrip whilst our Parliament (of Whores) continues to spend like grog-stupefied wainwrights on barrel-selling day.    No, maties, they seek to confound us with this Mary-move of callow authority.   No man can call his actions bold while pleading apology in the next breath!  

If anything, said grape-shot toss was mere subtrafuge to cover for additional scrip production in yonder Admiralty’s subterranean printing gaols!  What will occupy the Admiralty’s cargo holds for years — baser and baser scrip — will be what ensures our golden Treasures worth! 

So be not a-feared but rather emboldened by the tightness of Rear Admiral Bernanke’s wedgies, and the sagging of his pompadour.  Now is the time to press the hot cutlass to their throats and let roar with musket, grape and cannon.   The battle is near-won, me swabbies.   Let us not then quail at the size of the Admiralty’s frigates, but rather laugh at their frailty — they are made of paper, lads!

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This day I shall be indulging in all me favourites, but  most especially those in the silver Escudo doubloons, for the price of bonnie silver is racing back up even faster than that of gold.    To that end I shall be indulging in me favourite miners, Silver Wheaton Corp. (USA) [[SLW]] , [[EXK]] , [[SVM]] , [[PAAS]] and maybe even the worm-bitten dogs [[CDE]] and Hecla Mining Company [[HL]] .   [[AGQ]] is only for the traders, but it may boom off of any pullback here.

Don’t forget me favourite golds either, which number three — Allied Nevada Gold Corp. [[ANV]] , Eldorado Gold Corporation (USA) [[EGO]] and Royal Gold, Inc. [[RGLD]] .   Some dogs that may be opportunities thanks to yesterday’s scare off  could be New Gold Inc. (USA) [[NGD]] , Exeter Resource Corp. [[XRA]] , NovaGold Resources Inc. (USA) [[NG]] and Northgate Minerals Corporation (USA) [[NXG]] , along with Rubicon Minerals Corp. (USA) [[RBY]] and even [[BAA]] .  Of course [[GDX]] is a great purchase if you want a catch all.

I also think the Ag side will continue to stay hot, so any weakness in Monsanto Company [[MON]] , The Andersons, Inc. [[ANDE]] , The Mosaic Company [[MOS]] , and Potash Corp./Saskatchewan (USA) [[POT]] should be seen as an opportunity.  I will likely have more to say on this front.   

Many of you may have seen I chose Cree, Inc. [[CREE]] as my March Madness pick (SLW is too volatile).   I like it and Veeco Instruments Inc. [[VECO]] as my two hottest tech names for the intermediate to long term (the only way I play).  

Best to you all, my hearties, and if anything today — WATCH SILVER — something seems to be “up.”

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Sun, Sun, Sun, Here He Comes…
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Today was golden, metaphorically and physically.  Aye, my purse weighs heavy tonight, good sir. They’ll be more to come, but let’s see what today’s action meant for one of favourite picks.  Today, I examine the daily Allied Nevada Gold Corp. [[ANV]] chart for some near term lessons and targets:

What a difference a day makes, no?  One successful thrust and we are up and out of the consolidation zone once again, and ready to make a run at the early January highs ($16.50 area).   We may get a couple of pullbacks from here, but I think we will proceed to that stated goal relatively quickly before pausing to coil again.

Our friend Baby [[HUI]] is also showing signs of robust life, not two weeks after becoming as oversold as that index had been back in the dark days of November ’08.  

Note how the MACD and the slow stochastic are only just turning up on this weekly chart?  It makes one want to touch one’s staggeringly huge bouffant, doesn’t it?

There’s a lot of run left in this move, I think.   Maybe we’ll even shoot past the recent highs of $520 in this cycle.   With the dollar continuing to flag, and the price of gold holding about $1,120 — I have all the confidence in the world.

Back in the here and now, I continue to like all the precious plays I named in yesterday’s post, and I also like the “N” team, NovaGold Resources Inc. (USA) [[NG]] , New Gold Inc. (USA) [[NGD]] and Northgate Minerals Corporation (USA) [[NXG]] .   My top picks continue to be in silver, and especially Silver Wheaton Corp. (USA) [[SLW]] and [[EXK]] .

I also like the action in my two tech favourites (sic) today, Cree, Inc. [[CREE]] and Veeco Instruments Inc. [[VECO]] .   I actually attended a venture capital presentation this afternoon on nanotechnology that blew my socks off.   This new company’s first major customer was Veeco.   I think that may be a sign, I dunno.

On the “other metals” area — the three T’s will be strong with steel ripping.   Don’t forget Thompson Creek Metals Company, Inc. [[TC]] , Teck Cominco Limited (USA) [[TCK]] , and Titanium Metals Corporation [[TIE]] , as well as RTI International Metals, Inc. [[RTI]] , which has moved nicely in the last year or so. 

Finally, I would be remiss if I left off my two platinum blondes [[PAL]] and [[PTM]] .   Buy these and get a year’s subscription to Lady GaGa Magazine.   It won’t disappoint.

Your faithful servant in the Reign of the Sun King,

Jake.

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