Note, upper left corner — “The Perfect Sammich”
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To the chagrin of Bears and cash horders everywhere, the unemployment numbers were magically re-arranged in unicorn land to gallop forth and match the pixie-dust retail fabulations we got yesterday.

Ladies and gentlemen, I’d like to take this moment to thank The Gap Inc. [[GPS]] for saving America. It’s quite obvious that all those laid off investment bankers and advertising execs are putting their latest model Research In Motion Limited (USA) [[RIMM]] and Apple Inc. [[AAPL]] communications devices to work via banana-skin-tight tee shirt sizing down at the Mall of America.

Let’s face it, late stage consumer meltdown (“don’t get mad, go shopping!”) is the only logical answer to our employment resurgance (only down 35,000 jobs this month, President Obama, we thank thee!)– Coo coo coo joo, Urban Outfitters, a nation turns it’s plastic cards to you… hoo, hoo, hoo.

Hoo, hoo, hoo. Now, get back to folding!

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We didn’t get our [[HUI]] touch of $415 yesterday, and that annoyed me, but only temporarily. I think we may get just enough dollar strenth today (DXY rose to $80.89 this morning on the good news that the mall employee to mall attendee ratio was flattening). Same goes for Allied Nevada Gold Corp. [[ANV]] which got as low as $14.33, but did not fill Monday’s gap at $14.24.

I’d keep my PM buys in there at those levels, as I think those gaps want to be filled. Silver Wheaton Corp. (USA) [[SLW]] is a different story, as it fell quite a bit yesterday on typical pre-employment number chicanery trading. I would be buying it right now, as I think yesterday’s washout was a last wriggle before it heads back to the recent highs in the high $17 area.

All that said, I expect to be lightening up on some of my option plays, perhaps as soon as early next week, as I think we’re due for a pullback after fighting the overly bearish for the last week or so. As they pile in, we shall pile out — if only temporarily — from our higher risk positions. That would include my [[GDX]] and Monsanto Company [[MON]] calls, not to mention the previously discussed Silver Wheaton Corp. (USA) [[SLW]] , though north of $16.00 for that last.

Expect the dollar to begin to weaken here (watch [[UUP]] with DXY), after absorbing some of the glow of cheap brandy acclaim from today’s numbers. I still like [[TBT]] , however, as I think the treasury markets will recess in unison with their underlying currency. Chickens & eggs and all that.

Best to you all, and enjoy your smelter sammiches (sic).
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Helpless Feeb Trading, FTW! (Or Not)
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I don’t usually go for the whole gloating thing, as it’s unkind, and generally karmically challenging.

I’ll make an exception this one time, however.  Call it karmic recognition if you will.   Much to the cognitively challenged’s chagrin, [[SLV]] is triumphant once again, after many weeks of representing second place to Canadians and other luge and curling aficionados.

The dollar index, [[DXY]] , is back below $80.00, currently trading at $79.86. It’s proxy [[UUP]] is below a significant (61.8%) intermediate term Fibonacci line ($23.52), and looks to be heading towards $23.13, it’s next support.

Many of my compatriots are short or heavily in cash. Small traders have one of the lowest call positions recorded since last March’s lows. People cannot believe this market can go up. In short– It’s a basket weaver’s market, and I’ve just finished a fine set of cane-rush patio chairs.

I’d like [[AGQ]] to stay above $55.02, and [[EXK]] to stay above $3.36 first, and then $3.61 second.   Near term target is $3.76, but I’m holding for the long term.  [[SVM]] is approaching a very important 61.8% fib line at $6.99, and if it should break it (I don’t think it will on first try, frankly) then it should run right to it’s recent highs at $8.00.    Last, [[PAAS]] is good to go over $22.35, and it’s next stop should be in the $26.50 recent high area.

My favourite, Silver Wheaton Corp. (USA) [[SLW]] is labouring (sic) on low volume here, and needs to get above $15.95 in order to “release” to the recent highs of $17.80.   It bears watching, while bears are watching.

Here’s what’s giving me hope for a bullish continuation even amidst the ursinity of my peers… The Russell (I use RUT or [[IWM]] to track it) is breaking out ahead of the [[SPY]] .     If the [[DJT]] and it’s representative United Parcel Service, Inc. [[UPS]] can continue north and break above recent highs, then I will have further comfort.

Until then, please be sure to purchase plenty of technical trading books.  Those authors need to eat, too, you know.

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We be coursin’ out o’ the far lip o’ the storm and here it tis at her strongest.    With the power o’ yon circlin’ vortex, it will try to drag ye to yer briny doom deep in the cold confines o’ Davey Jones’ Locker.   Take heed, lads!

Make an eye on yon dollar representative [[UUP]] — note how he’s strooglin’ and dancin’ like a half-mad murth’rous boocaneer at the end o’ a strip of fine English gallows hemp?    He’s tryin’ tah break ye lads, and his murth’rous brither, $DXY has shot all it’s grape over $81.00 as oirly as this morn!     They’re after ye traisure lads, as shore as I was born a palsied pain and boirnin’ boyle to the British Empire’s arse!

Aim yer guns down, lads, right below the waterline of yon King’s Federal Admiralty First Rater, the H.M.S. BernYankme, for her three decks are festooned with dollar cannon, ready to sink ye with all hands aboard, and yor sparkly traisure o’ silver and gold as well!   

But beware the storm that assists yon bewigged and brass-buttoned scurvy Federal Redcoats, blowin’ out of the South Mediterannean, and the Aegean Sea.   Tis driving the dollar to new highs against the warped and besotted Euro.   Fill the lifeboats with [[DRR]] and other provisions such as meat pasties and cane sugar.   Despite the dollar tide being up near a full 100 basis points, [[GLD]] and even [[SLV]] are riding the storm well, which gives me good cheer, even as my cutlass runs red down it’s fuller, and my beard sizzles with ball and gunpowder.

[[SVM]] and [[PAAS]] which were laggards last week, seem to be holding out the best in the silver circus.   [[EXK]] , Hecla Mining Company [[HL]] and [[CDE]] are next in line, with my favourite (sic) Silver Wheaton Corp. (USA) [[SLW]] taking the worst of the tsunami wave for the rest of her crew.   

The cautious among ye will await the drop o’ DXY below the $81.00 sea line.   At that point, I think even the Treasury Bane [[TBT]] will be boardable without fear of it becoming a Jonah.   Me three favourite golds, Allied Nevada Gold Corp. [[ANV]] , Eldorado Gold Corporation (USA) [[EGO]] and IAMGOLD Corporation (USA) [[IAG]] seem to be holding up in that order as well.

Hold hard mates, I see a calm horizon when this sqall be done.

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How you like DEM appers, Hans Brix??

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While the [[SPY]] and it’s brothers [[IWM]] and [[DIA]] continue to melt down this morning in a “Wiener Health Care Epiphany” paroxysm of joy, something odd is going on with my usually dour miners.

They are not doing the D-Wave downshuffle along with the greater market.   Usually [[HUI]] and its components, Goldcorp Inc. (USA) [[GG]] , Agnico-Eagle Mines Limited (USA) [[AEM]] , Yamana Gold Inc. (USA) [[AUY]] , Hecla Mining Company [[HL]] , Gold Fields Limited (ADR) [[GFI]] , Kinross Gold Corporation (USA) [[KGC]] and Newmont Mining Corporation [[NEM]] (among others) are getting bashed with the best of them in a dollar up ( [[UUP]]  is one metric) and market down environment.

Could it be that precious markets (and maybe the commodity markets in general) are sniffing out the gut-busting dollar explosion that will result in the fatal pillar of the Welfare State being added to our toxic soup should Obamacare gain some ground in today’s six hour tribute to Castro-style grand-standing?

I dunno, all I know is my babies — Silver Wheaton Corp. (USA) [[SLW]] , Eldorado Gold Corporation (USA) [[EGO]] , [[PAAS]] [[EXK]] , IAMGOLD Corporation (USA) [[IAG]] and Allied Nevada Gold Corp. [[ANV]] are showing some resiliancy here.   Could be that the Hueys are just oversold and resting up for a new sell off, but this action is not compelling me to give up my sammitch-eating marathon as instituted.  

Sure, [[DRR]] is probably a good bet here, as the Euro is a piece of dangling gypsy tchockes (sic) hanging off a sick old Romanian lady’s pleather purse right next to her Molotav-brand cigarette lighter.   But if you think a billion plus in new entitlement spending — let’s call it WienerCare if it passes — is going to strengthen the dollar in this new decade, I have some Jimmy Carter brand dental floss ready for delivery to you upon your immediate call.   Just pay shipping and handling.

Favourite (sic) pick o’ the day — Eldorado Gold Corporation (USA) [[EGO]] .

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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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