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That’s right, folks, I’m just going to keep steepening the metaphorical curve until this market breaks, no matter how ridiculous I eventually become.

Don’t worry, “SuperNova” is still some weeks away, and for now we will talk about silly bulls idling about in a bucolic wheat field only to be set upon by a near-silent International Harvester Combine with razor sharp blades that will quickly render them into so many two and a half inch ribeye’s ready for dry-aging.

Again, despite myself, my portfolio edged up again today, a half percent, sparks flying and hedges hedging.  And weirder still, my half and one-third positions (thus far) in QID, SDD and SDS were all off rather minimally today.  In fact, SDD was even up a tad.   None of this action is making me think my thesis is wanting, though I may be stuck waiting while we grind to the end of this current cycle.

The only hedge that drew significant blood today was the one that had no counterpart (unless you count my small core position in SLV), which was my one half position in ZSL, the silver commodity ultra-short ETF.    Everything else was offset, including my SLW sold calls, which were outpaced by the underlying stock’s gains. 

Many of you chided me today about silver having a good day, but in your heart of hearts, you saw how the price struggled, and how my two favourites, SLW and EXK struggled to retain gains.   This is not the action of a bull ready to take off, but rather one that is seeking a siesta.

Make sure you have cash on hand, and please, stay out of the cornfields, Children…

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[youtube:http://www.youtube.com/watch?v=4cnAfSsk2wc&feature=fvw 450 300]

A Gentleman

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Interviewed above is a man who is arguably one of the best rock and roll musicians of all time, with an indelible legacy that will never be questioned by the more serious students of the genre.   And yet Levon Helm is also indubitably a Southern Gentlemen in the truest sense.  Born to poor cotton farmers in an Arkansas town just west of the Mississippi, he was brought up with impeccable manners, respect for others, and a healthy fear of God.   The phrase “salt of the Earth” is cliched, but applies here if anywhere.

Note the patience, humility and even respect he allows the over-earnest newsdork interviewer?  A teevee journalist who, much like myself and most of my urban Northeastern brethren, reveals a contrasting self-important air of arrogance that far belies his functionary status?   It’s awe-inspiring.

Hell, I’ll say it– Levon is inspiring.    And his example and those of many of his generation is one of the major reasons I wanted my kids to grow up down here.   I wanted them to meet people with the quiet American dignity you see in this clip.  People like my children’s grandparents, and their grandparents’ kin from the Appalachian regions.   Because make no mistake, even in the South, folks like Mr. Helm are slowly becoming a rarity.

Every day, therefore,  I will strive to be more like him– not in talent, of course, but in pursuit of that humilitous honorability — as I believe that a most worthy goal.

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On the trading front, I covered a large number of my silver sold calls today, specifically SLW, PAAS, MVG and EXK, all at 35-55% profits.   I did this mostly because I think we will have a short term rebound here.   Maybe 2-5 days.   I find it hard to believe we are done, however.  

I think the noobs who piled into the PM markets in December still need to be shaken like rats running from the terrier.   What fun is a bull, after all, if it’s weighted down by noobs? 

I kept almost all of my gold hedges, not because I don’t think gold will bounce as well, but because the silvers are more volatile, and I have alloted the gold calls (sold) a bit more rope.   I will likely step out of them tomorrow morning.

The dollar is ramping, and it may return to our old mid $81 resistance levels once again.   I am preparing, and prepared.   You should be as well.

Lastly, if you are looking at the rare earth’s we’ve dabbled in recently, you should think of paring some here.  I expect a larger market correction to be upcoming, and that means the hottest stocks will be the hardest slapped.  Take note on AVL, as well as REE and MCP if you have any (I’ve neither).

Best to you all.

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Remember Children, Listen to Jake and NEVER Suck Your Thumbs!
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As I suspected (though I was never bog-standard certain), gold and silver broke their fevers today on a brief pop on the dollar. Listen, they’ve needed a rest for some time now, so let’s not get overexcited. If you have been following the blog, you’ve got a tonne of cash and you are probably riding some hedged covered calls as well.

If not, let that be a lesson to ye. Bad news is, I don’t think we’re done. Good news? We’re still in a bull here and the only thing that you’re giving up here by holding and waiting is a little opportunity cost.

And who knows, we could reverse and take off here tonight (I doubt it), and you could be ahead of the game. In the meantime, I stand and wait, and look for opportunities in some of these ridiculous rare earth metals. They too could use a rest, but perhaps not as much as our PM friends.

God bless, and stay away from those thumbs tonight…

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I have finally finished my 2011 Predictions.  That exercise, combined with the Worst Giant Loss in Two Centuries has sapped my creative energies and limited my blogging potential.

Let’s leave it tonight with my assurance that I will be hedging many of my positions again this week.  The dollar is struggling, but so too are gold and silver, which tell me that we are at a  short term peaking period.   I don’t think we get to the end of the year unscathed.

Prepare ye, and good night.

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[youtube:http://www.youtube.com/watch?v=QESfEd180rQ 450 300]

A Metaphor, of Sorts…

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Let that header sink in for a minute.   Then read this piece from the Indians.   They’re buying gold too.

This week can bring us a near term peak, and I don’t want you to panic in either direction.  I don’t want you to go insane buying gold and silver you don’t already have next week, as I believe we are perilously close to a dollar bottom.

This evening, we are also very close to $30 an ounce on silver, and we just broke $1,400 an ounce on gold.   These are significant levels that should not be tossed aside on a near term basis.   I think we will burst past these levels, but only temporarily, and then we will retrench.

But don’t get me wrong on the ultimate course here.   The Chinese are buying gold.   And they will buy silver.  And they will buy platinum, too.  And in the process of this accumulation, I posit they will make BIDU look like some bland utility stock before this is all over.

However, I don’t want you all getting off on the wrong foot–  especially since Le Magistrate has given you all the green light on silver surger EXK.   Now is the time to be wary as we are reaching overbought levels on multiple fronts.   There will be a time to gorge oneself on silver miners, but now is the time to sip… sip… sip. 

Like a butterfly at a nectar font, you must sip.    And keep in mind the auto accidents, eh?

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[youtube:http://www.youtube.com/watch?v=BKzNVrZ5Q_s 450 300]

For My Conspiracy Minded Brothahs

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The site was partially Vincenza-pated tonight, so I’ll be brief.  Silver’s got a way to go, here, and it may be the strongest PM available to us, as the various cloack and dagger Knights Templar types scramble to cover the shorts they’ve been laying on our asses since the Crusades.

Here’s the main dog, the price of the metal itself, via the SLV ETF we all know and love…  we just filled the gap:

Already bouncing out of oversold territory and making frisky like a kitten fresh out of the tumble-dryer.   Speaking of which, EXK  is also looking resiliant in the in the daily charts… had I said something earlier on that?

Look at that, the 20-day EMA looks like it was the spot, no?  SLW is also roaring to life again, but then, I don’t have to tell you that…

Do I?

One more precious metal pick– outside of the silver realm– that I checked out today since Le Fly was mentioning palladium in The PPT.    Looks like our pal, PAL is seemingly off to the races, perhaps permanantly here… Look at this weekly:

Looks like PAL will actually brings some returns here for people.  I may grab some on the morrow as a result.  Thanks Monsier Le Fly, et al!

Best to you.

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