_________________________

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.

_______________________________

Comments »

[youtube:http://www.youtube.com/watch?v=DgwJJ3pXvOw 450 300]

(Appropos of nothing, really)

_________________________

I don’t even know why I attempt to suggest other varietals.   Is it the desire to be au courant?  The obligation to entertain?  Devil-may-care hair in the wind type stuff?

I don’t know, but really… it’s just plain silly.  There’s a single bull market at play here, and this is what we are about.   I had a bunch of positions take egregious losses today, most notably those in the “hot but not” LED space, like CREE and (worse) VECO.    POWR hung tight, but I can’t imagine that nasty Friday WSJ article will leave it be, either. 

I even took a small bit of VECO off today, in the mid-33’s, because I figured it would be a while until I saw that position back in the drivers seat.    No matter, as I bought more AGQ with the proceeds and promptly saw it rise a buck and a half (to $60 a share).  Is there anything more exciting than having one’s steed cut down from underneath one in the midst of pitched battle, only to find a stronger charger at the ready?

That is why I was not down today, despite egregiousity in the above names and even some other hard metals like TC and TCK.  It was all due to the gorgeous strength of our gold and silver portfolio.    I speak primarily of the silver miners, including SLW, PAAS, EXK, SVM, MVG, CDE, SSRI and HL.   But the gold’s included prized champions like RGLD, ANV, EGO and IAG, who were stalwarts too.   

Note how the $HUI index held up today on the weekly:

Am I wearing cats’ pajamas or is that thing looking like it wants $520?   You tell me.

Then there’s one of my favourites, ANV.   She’s just been a trooper since we picked it up just under $6 last year, and is seeming to have no trouble moving on three times that size.  Note that strong weekly consolidation?

 

And the daily looks just as promising, after a decent pullback:

Another promising pick, and one I should leave alone and go macrame a duvet, or something “crafty” like that.  God knows I’m only dangerous going outside my “comfort zone” in the PM world, and He surely sent me a signal today.

May be time to re-assess and de-stress.   Real money is coming back into vogue once again.

__________________________

Comments »

 

_________________________
I had a reader inquire on the last posting about the state of some of my favoured (sic) silver-golden children. I speak particularly of [[SLW]] and [[IAG]], of whose Canadian charts, he was somewhat ill-taken. Point of fact, I think he was experiencing some painful reverse peristalsis, to cadge a term.

He mentioned also [[AUY]] but while I’ve spoken of them before as a decent buy and hold, they fall into my “aquiror” basket rather than potential “acquiree,” one and therefore I find them less appetizing.

But still nutritious with regard to a balanced portfolio of course!

Back to [[SLW]] which you all know holds a favoured place in my heart, much like one of my children, save not breathing or in need of sustencance, and quite weighty for it’s size and youth.   Whenever I need some perpsective on these names (or any names, s’truth) I repair to the weekly charts for a more holistic gander.  In this regard, SLW shows us a pattern in good standing:

As you will note, we are consilidating after breaking to multi-year and yes, “all time” highs.  If anything, we’re forming a bit of a handle whilst using the 13-week EMA as support.   Not exactly cause for alarm given the 13-week’s reliability over the last 15 months or so. 

Next let’s look at the weekly for the Gold Man Sacks, otherwise known as [[IAG]]:

IAG may need some time before it  breaks back above that $20 mark that defined its recent high back in November of ’09, but this consolidation pattern is by no means a sickly one.  The 13-wk EMA serves as the stalwart in this case as well, and should be watched as IAG grinds higher.

[[AUY]] is the least pretty, and frankly, its last quarterly earnings report denote some work that needs to be done before it can recapture it’s place of “honour.”  Note the Limbo in which it currently finds itself:

 While I believe this is a decent “buy and hold,” I think AUY likely has at least a quarter or two more to go before it can attempt to break to new highs.  It, too, should hold abover the 13 week EMA, but in this case, the real test will be a break of $13.

Good luck and do not fear, as I believe the dollar will be our friend going forward, in ascendency or demise.

Best to you all.

_______________________

One last thing:

Happy Memorial Day to all, and especially to our veterans here and departed, without whom we would never have the pleasure of these inter-tube conversations. Thank you for your sacrifice.

And a special treat — the inimitable Renaissance Man and combat veteran Mark Helprin has a special Memorial Day essay that is “must” reading for all sensible citizens of this great land.

__________________________

Comments »

Lost My Shirt, Danglin’ by a Thread… Still Got the Girl, For Now

_________________________________________

Just a little bit longer, now I think.

I told you I took advantage of the Bollinger Band crash trade  (thanks for teaching me this, Gary) today when I purchased some kookie SPY calls at 1082, yes?   Well, you can see how that worked out.  But then, these crash trades almost never work out right away, even though they seem to work out over 90% of the time, in the more intermediate-run.  

Point is,  I think we’re pretty close to a bounce,  where I will GTFO of those calls, and hopefully back into some nice dry gold lame suits.

The gold market seems to be holding up okay, and that Allied Nevada Gold Corp. [[ANV]] weekly chart I showed you yesterday is still holding that trend line, if only barely.   The $HUI index also looks  like it’s ready to finish it’s plunge here as well.   Maybe just a little bit more on the daily, here:

Oversold on the RSI, and the stochs are not far behind.   I think the touch and go will coincide with the rest of the market, maybe as early as tomorrow.  Here’s the weekly for perspective:

Still like the bigs, including Goldcorp Inc. (USA) [[GG]] , [[GDX]] and Royal Gold, Inc. [[RGLD]] here, but also Allied Nevada Gold Corp. [[ANV]] , Eldorado Gold Corporation (USA) [[EGO]] and IAMGOLD Corporation (USA) [[IAG]] .    On the silver, [[MVG]] seems to be holding up well.   [[EXK]] took a big dump, as the small caps will do, but I think it’s a bargain hunter opportunity.  Silver Wheaton Corp. (USA) [[SLW]] remains your best buy in the silver sector.

Step slowly, if at all, and I will see you all tomorrow, God willing.

PS — The PPT has been invaluable the past few days.   Fly has been on fire, and he’s even more available and open about his strategy there, away from the leeches.   It’d be well worth giving it a whirl for the summer, I tell you.

____________________

_________________

Comments »

That’s “Loin” not “Lion!” 

______________________

We’re a little bit over a year into my tenure here, and we’ve probably had three or four “one of those days” days since I started. 

Today was one for sure.

This is life in the PM bull, friends, and we should be used to it by now.   I expect we are not fully shaken out, although that over 10% move in the $XAU index today might have scared some people off for the next decade or so.

That said, opportunities abound.   [[EXK]] was even up by the end of the day, and Silver Wheaton Corp. (USA) [[SLW]] filled two large gaps from the prior month’s work.  In hindsight, I likely should have taken the opportunity last week to sell some calls, as I’ve done in the past, but frankly, I was just too busy.   That’s why I choose to play long term secular bulls like the gold and silver markets, however, and that strategy has served me well.

So buck up Cowboy, and get ready for some more bull-riding, pleasant and not so much.   The good news is those with some dry powder can still grab some great names, perhaps as early as tomorrow morning.   I’ve mentioned Allied Nevada Gold Corp. [[ANV]] before (I also like Eldorado Gold Corporation (USA) [[EGO]] here), and you will remember this weekly chart from a couple of days back:

Note we’ve touched that trend line today, as I’d predicted.   We may do so again tomorrow, but that mid $17’s area remains a primo area to pick up some nuggets.  

On the silver side, besides the two I’d mentioned above, I think [[PAAS]] is still one of your better bets, and riding that weekly trendline like a refusnik on the potato line.  

Feel free to stop by here, or The PPT to discuss stocks and trends.  I’m here for you during the roller coaster times.

______________________

Comments »

 

_________________________
We may get some pull back here in the golden markets, as — ironically — the dollar declines and the Euro strengthens. This reversal would be a sign of diminishing panic, and may be taken as a cue for traders to offload some “bunker assets” like gold and silver and lovely platinum, the precious platypus of heavy metals (much like the late Ronnie James Dio, R.I.P.).

But as I said to a faithful reader today — do not forsake the bull for the distress of  an uneven ride.  Bulls can be ornery and force one to pour over the Yeller Pages for the solace of a chiropractor, but they are in the end, powerful avenues to wealth for long term trend traders. Until much further notice, we are in a PM bull, and all eyes should be focused on the quality names.

As a result, I must fall back to Allied Nevada Gold Corp. [[ANV]] again, despite their recent capital raise that has their stock back on it’s (round) heels. Still the weekly path could be no clearer here for those still waiting to participate:

The daily is a little more hairy but describes some nice entries.   I like the 20-day here ($18.64) , but only if it holds like it has been since March.   It’ll be worth waiting for, I think.

On the silver side, I liked [[EXK]] ‘s action today, but I still love Silver Wheaton Corp. (USA) [[SLW]] for the long haul.   Here’s a look at the weekly chart and SLW’s quest for a more tolerant planet:

And here, again, the considerably uglier daily chart, which I believe is still under voice-command until further notice:

In short, I think opportunity will be knocking soon, in it’s best Vince Sham-Wow “Limited Tyme (sic)” pitch guise.   There will be others (for example Cree, Inc. [[CREE]] and Veeco Instruments Inc. [[VECO]]   who shined through today) but these are my two current foundation plays.  

I am leaving Royal Gold, Inc. [[RGLD]] out only because it’s a different royalty animal, but I’d get any of that that was available as well, should we dip on the PM side.

Stay strong, despite the mugfuls of black charnel soap bubbling in your Campbell Soup Kids’ cawfee bowl.

__________________

Comments »