Bring the Goooooold, lads!
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Amidst all this market shakedown this week, thanks to the Goldman’astra there’s been one stalwart –the gold and silver metals and their miners.

Whilst today Cree, Inc. [[CREE]] and Veeco Instruments Inc. [[VECO]] were mildly to “extra spicy hot” OFF, my trove of golden doughnuts held form well, and in fact look to be setting an example to the rest of the stock world for when everyone else realizes inflation is coming. 

The [[HUI]] , which is an index for unhedged miners  makes for a great example of the relative and overall strength of its sector.  The weekly, which you’ve seen before, shows that the bounce off the 61.8% fib line continues unabated:

Even the daily is showing “whut-whut” these days to the pikers in other sectors:

These are the signs of sleeping giants, gentle people… and they are quite possibly being unleashed by their former masters in the Iberian and Aegian Peninsulas.  Whatever the case, you can be sure more printing is to come.

Here’s a beneficiary of some printing, as pointed out just two nights back.  Silver Wheaton Corp. (USA) [[SLW]] has now tested it’s breakout and is now ready to play in all reindeer games:

You know I’m biased, but you have to admit that’s a pretty sweet formation, no?  She remains my favourite (sic).

Best to you all, my friends.

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Bonus! — The title explained for those who missed the first posting.

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[youtube:http://www.youtube.com/watch?v=yv0MEMyot3A 450 300]

Hercules with Lasers… Go with it!

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It’s time to dumb it down.   Way down.

I am preparing myself for this coming weeks’ action by watching the classic Golan and Globus production “Lou Ferrigno’s Hercules.”   Watching this veritable feast of the cinema has –conservatively speaking — knocked out twice as many of my brain cells as would an all weekend black out date with Johnny Walker Red.  What’s more, there’s no hangover involved… just a rough couple of days of re-remembering my children’s names.

Which is all great preparation for what this market is likely to do should the dollar plummet down the nearest ravine, which I think it should do as soon as this bit of Grecian mess is resolved.  I believe that shall happen … shortly, as the Euro is already firming against the Swiss franc (which is actually made of cheese).  Soon it’s going to be hell for the Euro-bears, and Heaven Hill for we dollar bears. 

Here’s how I see the dollar resolving.  I think Friday’s failure to reach the recent highs and attendant turnover in most stochs is significant:

Not surprising, as we’ve expected the dollar to resume it’s downward drift, and now it appears that with housing numbers up, we have another excuse to expect inflation. 

Besides some of the recent gems I’ve spoken about, like The St. Joe Company [[JOE]] the land whore and the platinum twins [[PAL]] and Stillwater Mining Company [[SWC]] , I think I shall add to my Thompson Creek Metals Company, Inc. [[TC]] , my Cree, Inc. [[CREE]] (on a pullback to $76) and my Veeco Instruments Inc. [[VECO]] at market. 

I also like what [[MVG]] has done to her hair, and will add to Exeter Resource Corp. [[XRA]] the gold spinner too.  Last, two smaller juniors that I believe I will be adding here are Golden Star Resources Ltd. (USA) [[GSS]] and [[BAA]] .  

If I could only purchase one thing this week, however, it would likely be my “baby” — Silver Wheaton Corp. (USA) [[SLW]] which is just now breaking out all over again:

My best to you all, and Merry Hercules to you, too.

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The M&A boom in the precious metal sector that I’ve long predicted on these page has finally begun to blossom.   [[LIHR]] supernova’d today on news of it’s rejection of egregious sexual advances from the Newmont Mining Corporation [[NEM]] and other encroaching crepuscular old men.

This will be only the beginning, as I have mentioned to you.   Large, shambling behemoths like Newmont Mining Corporation [[NEM]] , Barrick Gold Corporation (USA) [[ABX]] and even the nimbler Goldcorp Inc. (USA) [[GG]] will be hungrily seeking  small and medium sized asset-laden precious metal players like voracious toothed pelicans pursuing hapless baby ducks.  Smack! Smack! Deeeelicious!

  I expect that eventually, even the big general metal miners like Freeport-McMoRan Copper & Gold Inc. [[FCX]] and BHP Billiton Limited (ADR) [[BHP]] will get into the act, diluting themselves for my greater enrichment.  What’s up today as a result?  Better to ask what isn’t, but you can infer that the names with the greatest returns on an M&A day like today are very likely going to correlate with the names of other possible acquirees… among them:

Yamana Gold Inc. (USA) [[AUY]] , [[CDE]] , Eldorado Gold Corporation (USA) [[EGO]] ,  almost all the components of [[GDX]] and [[GDXJ]] ; silvers Hecla Mining Company [[HL]] and [[MVG]] (congrats to Employee8/Teahouse on this last one), and the two of  “the three N’s:”  NovaGold Resources Inc. (USA) [[NG]] and New Gold Inc. (USA) [[NGD]] . 

Also,  the silver cabelleros [[PAAS]] , Silver Wheaton Corp. (USA) [[SLW]] , Silver Standard Resources Inc. (USA) [[SSRI]] and [[SVM]] are all hot (and even stodgy [[SLV]] and his steroidal brother [[AGQ]] ), and let’s not forget platinum friends [[PAL]] and Stillwater Mining Company [[SWC]] .  Last, let’s not forget “X” factor, recently unspun Exeter Resource Corp. [[XRA]] .

Untroubled by today’s rush are eight PM underperformers which may only be laggards to today’s action, and therefore bear watching: Allied Nevada Gold Corp. [[ANV]] , [[EXK]] , Gold Fields Limited (ADR) [[GFI]] , Gammon Gold, Inc. [[GRS]] , Golden Star Resources Ltd. (USA) [[GSS]] ,  Northgate Minerals Corporation (USA) [[NXG]] , Rubicon Minerals Corp. (USA) [[RBY]] , and Royal Gold, Inc. [[RGLD]] .   You know that last is one of my all time buy and hold plays, so watch it especially here.

For my part, I will continue to ride the invisible neon flow of the Matrix, to the envy of my friends and the chagrin of my enemies.  I wish I could tell you all the momentous things which currently abrade my precious thread of cohesion with you all, but it would just as likely cast you into the pit of despair as lift your spirits to the heavens. 

Tomorrow is a day of Remembrance for me, and a day of quiet for the Markets.   I will try to stop in to share cause and cost with you, but if we not speak, may you all be well, and good to one another.

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Diiiiiiiiiiiiiiiiiieeeeeeeeee!!!
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Forget about your regular run of the mill “Denningerite-Goldman Sachs” conspiracies, I think there are heavier machinations afoot.  

Let’s take this Old Dominion win over the weurthies (sic) at Golden Domer Land ( that’s “Notre Dame” to you foreign debils).  Obviously someone has spiked the Gatorade in the Southern bracket, as fellow Big East weurthy Villanova needed overtime to dispatch that grab-bag of hirsute and unlaundered ruffians from Robert Morris University (I believe they are the largest providers of “Executive Assistants” in the Western hemisphere).  

No one needs to sniff around long to realize this is all just another  “pad the Duke run” conspiracy, no doubt cooked up by the seminal communist claque at CBS Sports and the villainous Koach Kryszistikanmstlplx of the Permanantly Punched-off Mustachio Society.

As a result of my suspicions, I fear greatly for my Louisville Cardinals, who will play the Bezerkley Cal Bears tomorrow night in their respective Tournament tip off game.   In fact, I have even warned them– via multiple flash texting– to beware the laudanum crystals that will no doubt be sprinkled upon their Soup & Salisbury Steak pre-game meals.    

This would be no coincidence, mind you, as their next opponent is the hated Duke Blue Devils, should both teams advance to the round of 32.   And while the Pukies (sic) are already the beneficiaries of an ill-gained #1 Seed, they will likely take every nefarious precaution short of chain-sawing off the legs of their next opponents and calling it a “freak escalator mishap.”  (And only because they did that last year and don’t want to risk the usual “too coincidental” inquiry). 

I am hoping of course that there is a God in the Heavens who will caffeinate Duke primary opponent Arkansas Pine Bluff’s Cocoa Puffs tomorrow morning and make them the first #16 seed to knock off a #1 in T0urnament history.    The hated Blue Devils are well deserving of the honour (sic).

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In stock land, it looks like I got out of the rest of those June $11 Silver Wheaton Corp. (USA) [[SLW]] calls just in time last night ($5.45) , as it seems stocks are finally going to head into a cycle low here, with the PM miners leading the charge.     Of course I kept 30 of the original 240, just for “esses and geegles.”    I also got rid of the final 60 June $40 [[GDX]] calls at $7.55 this morning as well.

Last, I dumped another 1,000 shs of [[AGQ]] at $57.94 at the open this morning.  I retain a final 1,000 shares out of the original 4k. 

I also dumped 8k of the Pacific Capital Bancorp [[PCBC]] at @ $2.19  with my thanks and a promised steak dinner to brother “Rage in the Cage” , who put me onto this neat little fiduciary a couple of weeks back.  I retain 12k shares for the “free cash money” heck of it.

One last peculiarity I will point out, and take it as you will…

 Despite the pullback in PM stocks, the price of gold has held rather well, and the dollar can only hiccup higher over Grecian death rattling ( [[uup]] up about 17 cent today).   Note also, however, that the “King of the Transports,” a.k.a., “The Mighty Big Brown,” United Parcel Service, Inc. [[UPS]] is enjoying a renaissance in price movement it has not seen since before the 2008 “Year of Black Ddeath.”  

Charles Dow calls out to you from the grave, citizens… will ye listen?

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UPDATE:  GO YE MURRAY STATE RACERS!!   Beat those South’n Commodore Vanderbilt Goofs!

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[youtube:http://www.youtube.com/watch?v=it-RXp0T2TA 450 300]

Cuter  than Bing, no?

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I’ll have you know, the direct translation of “too ra loo ra loo rah” is “Get drunk, you Irish monkey, and buy stocks.”

Here’s hoping my good friend M. Le Docteur de la Fly, who is resoundingly French on all days save this one, will comply.

Why?

Well, it seems the tell-tale market indicator, the BKX, has broke the shilelegh (sic) out, and wants to take the rest of the market with it.   Everyone with an ounce of Galway joostice (sic) in him knows that means the market wants to rip.  

Want proof?   Here’s a shot of Jamison’s and a chart for ye to consider in your bear suit:

Will we have a pullback?  Sure, most likely.   And I will likely lighten a bit more tomorrow, as I did today, with my Silver Wheaton Corp. (USA) [[SLW]] calls, [[GDX]] calls and [[AGQ]] sell off, all at a tidy profit, mind you.   But I haven’t sold a drop of BB&T Corporation [[BBT]] or even Pacific Capital Bancorp [[PCBC]] as I think the banks are for real here.

You see, the dollar has begun it’s move back down to the $78.50 or so level, and that’s going to be tough love for those of bearish persuasion going forward, even after our expected pullback.  

As a matter of fact, you might even think of adding to your [[TBT]] because Ben as much said he’s all for inflation today, that crazy bearded leprechaun of questionable heritage.  

I’m hoping all my fellow Irishman will lay down their “dukes” (sic) and join me in a pint of Guinness (and some Diageo plc (ADR) [[DEO]] ? ) this glorious day.  Celebrate our heritage, get a little drunk, get a little long.

It’s easy.

Erin go Bragh!

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[youtube:http://www.youtube.com/watch?v=ZfINBYmGD1A 450 300]

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I don’t often talk about the University of Kentucky on this site, being a “mostly” Louisville Cardinals fan (and they don’t like it much around here when you’re “both.”  You might as like to try to “borry” from a man’s still instead).   However, UK freshman, SEC “Player of the Year,” “Newcomer of the Year,” and quite possibly #1 NBA draft pick John Wall makes for a nice metaphor for today’s dollar discussion.

Wall, while deified in the Blue Grass for his eye-popping offensive talents, is going to be the number one (or #2, his teammate DeMarcus Cousins may go #1) draft pick because of his defensive capabilities, which are sometimes similarly eye-popping.   It’s arguable, for instance, that he beat Vanderbilt at Vanderbilt all by himself with a last second shot block on a dead-eye three-point shooter, followed by a clean pick of the ball right from said startled shooter’s hands.  

What’s that?  Of course Youtube has the clip!

[youtube:http://www.youtube.com/watch?v=EZzXhhd6CRA 450 300]

Pretty spiffy, no?   You don’t see that kind of instinctive defensive thinking in a lot of freshman.

And that kind of defensive, er… “wall” brings to mind our old weekly dollar chart and the “fib wall” we’d identified as going to be a tough area to breach.   It turns out, the 200-week exponential moving average (“EMA”) served as a barrier as well.   Look at the slow topping we’ve seen here, keeping in mind this is a weekly chart:

I think this bodes well, at least in the near term, for our commodities “risk trade,” and especially the precious metals, which are perking up quite nicely this morning as the dollar (DXY) drops below $80.00.    [[AGQ]] is taking all it’s friends out for a champagne party, and purchasing them Norma Kamali handbags.   Fellow silvers [[EXK]] , [[CDE]] and even rag-tag Hecla Mining Company [[HL]] are also again off to the races.  As always, the best name in silver is Silver Wheaton Corp. (USA) [[SLW]] .  On the gold side, you know my favourites (sic) but NovaGold Resources Inc. (USA) [[NG]] is really picking up steam as it matures here.

Keep an eye as well on our dollar proxy [[UUP]] , which we’d like to see stay below $23.60 for our shiny metal dominance to continue.

On top of our usual metal trades, it seems that the regional banks [[KRE]] are also back on thier horses.  You know I love BB&T Corporation BB&T Corporation [[BBT]] as a long term hold, but don’t be afraid to grab a little Fifth Third Bancorp [[FITB]] and Huntington Bancshares Incorporated [[HBAN]] here as these “Ohio chancres” will someday soon be able to cover up their cold sores and sashay out into the bank M&A saloons once again, all a-flooze.

Last, don’t forget about Elite Eight  pick Cree, Inc. [[CREE]] which is still getting its wind back (thankfully, so is SanDisk Corporation [[SNDK]] ) and it’s sister Veeco Instruments Inc. [[VECO]] , which has really been gaining some nice ground recently.   I like both as hedges against future “Inflato-rama Drama.”

My best to you all.

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