[youtube:http://www.youtube.com/watch?v=8Qtgm5g5Gyo 450 300]

Fly Takes on the Mustachio’d Bearshitters via Liberal Use of The PPT Hammer

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Here’s the full vid, if you’re interested.   I tried to isolate the part where Bugs sells the King’s garden property to the Sheriff of Nottingham (pictured above), but couldn’t find that select clip. 

 I thought the Sherriff’s self-head hammering in that scene (about 4:00 or so in the full ‘toon) a particularly apt metaphor for the ursine intransigients, but I guess the scepter-malleting depicted above will have to serve as an able “second best.”  

He is making the Sheriff a “KNIGHT” after all, right?

Too unsubtle?  Pity. 

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More of the same wanton winning today, even as my activities in The PPT were relegated mostly to assembling one single ginormous call position in [[GDX]] .  

 I sought “deep-in-the-money” leverage here, purchasing the December 39’s and 40’s at $8.60 and $7.90 respectively.   I had to buy both at the ask, which I don’t like to do, usually.  However, I was unsuccessful with limit orders at lower prices, and did not want to wait another day, as I think GDX could launch again at any time.

I expect to hold these calls til near Turkey-Day, for what it’s worth.   I may shave some exposure if we have a large run-up earlier than I expect.

In other news, the “Killer Bee’s”  [[BAA]] and Beazer Homes USA, Inc. [[BZH]] continued to mint coin for myself and my compatriots in the bullion vaults of The PPT.      That’s just one letter of the alphabet in double digits…  I’ve another 25 in here ready to roll.

It’s been that kind of day in The PPT Wintocracy.  

 I continue to like IAMGOLD Corporation (USA) [[IAG]] , [[CDE]] and Silver Wheaton Corp. (USA) [[SLW]] for accumulation purposes here.

Tomorrow, I look at an interesting metal play starting with “A” — I think you’ll be intrigued.  

Until then, Slange (sic), and out.

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Did you take some action today? Were you nimble? Were you quick?

I’ll have you know today I, “Jack,” jumped many a candlestick, whilst running away from ex-Nazi dentists with maddeningly persistent, OSHA-oriented questions.

Did you?

I’m not going to mess around posting a bunch of charts, mostly as so many of them look the same with their one day reversal candles… but I’m going to say it here and leave it up to challenge. Today was a gift from the PM stock gods.

You see, today was the day “they” — the Operators — were going to shake the tree on all the trepeditious weak hands in the PM sector.  They were going to drive gold below $1,000 and then knock you over the head with a sockful of nickles to see how many positions you’d drop onto the ground for them to Hoover up.

And they were successful — to a point.  They were able to force gold below the $1k surface for a little more than two hours of trading this morning (NYSE hours) before, like a dirty beach ball in the Coney Island medical wash, it broke out above the waves again and headed higher. As I type (11:15 pm), POG is almost $1008 again, and POS is approaching $17. I’m betting we see more recovery tomorrow.

The same thing that happened to physical gold and silver happened across the precious metal mining sector. Very rare was the singular breakout like our previously recommended Corriente Resources Inc. [[ETQ]] , “the Latina Beauty.”

No, most of our names offered instead outstanding opportunities to buy at deep discounts today.  Just pull the chart on any Jacksonian or other oft-mentioned PM name and note the reversal dojis as they roared to recovery, some all the way to the green.

And yes I took advantage, though I announced only to The PPT today, as I mentioned I would. And no, I don’t mean to torture you like Sir Laurence Olivier with a rusty dental drill, but… well…

You see, I think we are in trading this Fall in very opportune times, and I want to make sure the people kind enough to keep this worthy site going “in custom” as it were, are rewarded with first dibs on choice observations.

So please don’t think me unkind, but rather, think of me as merely giving you yet another incentive– by way of whirring dental drill– to at least take a peek at The PPT…  for your own “toothsome good,” as it were.

Here’s an (edited) log of my announcements on The PPT‘s famed User Notes today:

10:30 & 11:15 am— Bot 15k shares [[CVM]] @ 1.90 (blended)

11:03 am— Bot 40 Silver Wheaton Corp. (USA) [[SLW]] December $9 strike calls @3.60, (SLW @ $12.12)

11:45 am — Bot 1k more [[PAAS]] @ $22.84

11:51 am — announced “POG back over $1,000 oz. again, if you blinked you missed it.”

12:02 pm — announced a potential new flag break formation on Beazer Homes USA, Inc. [[BZH]] .

1:07 pm — Bot another 2k of BZH @ $5.75 (limit order placed at 12:10 filled)

1:22 pm — Took advantage of the huge discount in IAMGOLD Corporation (USA) [[IAG]] and added another 2k @ $13.66 right as it bounced off the upward sloping trendline.

1:36 pm — pointed out the (then 12%) breakout in Corriente Resources Inc. [[ETQ]] .

In addition, after the above purchases, I also gave a “preview” on three potential plays that I think are setting up, maybe as soon as tomorrow. And remember, this is the kind of thing that is happening every day on The PPT, and not just with my picks, but with trades, observations and analyses of every serious trader involved on these pages and elsewhere.

As a result, we’ve become near-Homeric in our collective winship. Grab an oar if you like, we’re off to Troy again tomorrow.

Slange (sic).

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Makeup bonus:  Just to prove I’m not an over-secretive ogre, I’ll divulge a non-PM tasty I’ve been eyeing.  Take a look at ANADIGICS, Inc. [[ANAD]] on a pullback to $4.75-.80 here.  I think it’s going places. Best to you.

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After all, this is why we are socking away wins for a rainy day:

So yeah, the Jacksons (up a collective 36.5% since May 1st as of today’s close) may be doing egregious “loaves and fishes” type miracles with your cash pile, but let’s keep our nose to the grindstone, as you’ll need that dough when a ham on rye, hold the mustard sets you back $36.25.

Remember we are all about dollar destruction here.   Take a look at that chart and ask yourself if the Congress and the Fed are going to support that kind of spending (not to mention the huge Medicare and Soc Sec liabilities) via the good old fashioned “belt tightening” of increased taxation and spending cuts?  

As they say in Texas, “No, hail no.”

So let’s be opportunistic and remember that there will be pullbacks in these metals, but that we need to manage our positions to maximize cash flow in this critical period.   For me that means selling calls at critical junctures, and even trimming the sails to raise cash from time to time.  If I’m reading things right, however, you are in for a bumpy, but enjoyable continuing ride here.

Keep in mind Rubicon Minerals Corp. (USA) [[RBY]] has broken to new highs yet again, and Allied Nevada Gold Corp. [[ANV]] remains a favourite pick.   I may take some leverage (ie, bot calls) off the table in Silver Wheaton Corp. (USA) [[SLW]] soon, as it’s run faster than it’s brother silvers by far, with over 66.8% returns since May 1st inception, while [[PAAS]] and Silver Standard Resources Inc. (USA) [[SSRI]] are only at 43.5% and 29.2% respectively.   I think SSRI especially will gain from here. 

On the junior level [[EXK]] continues to be a junior trooper, and I continue with a leveraged position in [[CDE]] as well, because of the acute lack of overhead.  I also own Hecla Mining Company [[HL]]

On the gold side, IAMGOLD Corporation (USA) [[IAG]] remains the monster of the pack, with 85.8% returns since inception, but I’d look for a pullback here before jumping in.   Eldorado Gold Corporation (USA) [[EGO]] and Allied Nevada Gold Corp. [[ANV]] still look like they can pack punch here, however, so keep an eye out on them and yesterday’s mention Gold Fields Limited (ADR) [[GFI]] .  

 Last, non-PM Monsanto Company [[MON]] grabbed back some ground today but continues to be undervalue in the Jacksonian sphere.   Still a “grandkids pick.”   The Andersons, Inc. [[ANDE]] –up over 106.5%  since Jackson inception — is still our leader, and looking for $39 as it’s next “achievment.”

I’ll have more tomorrow, but let’s shut it down with a veritable classic from my youth.   Share it with a favored son of daughter, and it’s likely they’ll never forget it:

  [youtube:http://www.youtube.com/watch?v=P7tQVEEPWv0 450 300]

Slange.

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I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

Thomas Jefferson, – “O.J.” — the Original Jackson (Attributed)
3rd president of US (1743 – 1826)

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With this quote in mind, I want to again call to your attention that we are approaching the “August to Christmas” gold run, which generally includes a concurrent run in the gold and silver miners, as represented by the [[HUI]] index.   Almost every year in the oughts since 2000 has reflected this run, save of course last year, when we experienced a 28% loss due to a mass liquidation of all assets.

As reflected in the 2007 portion of the following chart, you can see the $HUI broke over 67% in the August to December period.   Note that a return to the old highs ($525) would only require a 44% run from these levels.

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I believe we should see a relatively rapid progression when this thing gets moving — from $375 to the June highs (about $405) and then very possibly back to our pre-crash ’08 old highs in the $525 area.  That kind of progression in the $HUI should mean good things for all of our precious Jacksons, including Eldorado Gold Corporation (USA) [[EGO]] ,IAMGOLD Corporation (USA) [[IAG]] , our leveraged royalty play in Royal Gold, Inc. [[RGLD]] and our gold ETF [[GDX]] whose $34 strike options I purchased last week for September expiry.

A strong $HUI will mean even better things for the silver Jacksons, as the price of gold is still well over the historic 40x silver “norm” at nearly 65x today.   Silver Wheaton Corp. (USA) [[SLW]] is my number one pick in this space, but  [[PAAS]] and even relative laggard Silver Standard Resources Inc. (USA) [[SSRI]] should be strong in this coming period.

As for non-Jacksons, I still like Allied Nevada Gold Corp. [[ANV]] despite the recent dilution, and Rubicon Minerals Corp. (USA) [[RBY]] , Golden Star Resources Ltd. (USA) [[GSS]] and [[BAA]] all look good from the junior gold side, and of course [[EXK]]   and [[CDE]] on the silver side.   I will also throw Hecla Mining Company [[HL]] out as a possibility because it tends to jump in “hot” precious markets.   Be warned, however, this last is a “trade only” position, and not one to keep even one day past its expiration date. 

If you want to buy and hold, stick with the Jacksons and a well diversified pool of juniors… one or two of those will be “lotto tickets” and the rest will be largely crap, but you will be happy for the lotto wins nonetheless. 

No excuses, ladies and gents.  It’s “sarious” (sic) time.  See you at the finish line.
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I know I haven’t given you a Jacksonian update in a while, so here’s last week’s results.  Note the bludgeoning in Thompson Creek Metals Company, Inc. [[TC]] due to the UBS (curse them) “bought deal” which means a “sold short” deal to those who are already holders.  No matter, once this overhead is sopped up, TC will move again, as will Teck Cominco Limited (USA) [[TCK]] .  Get these while they are cheap.

Name/			%		Portfolio	Portfolio
Ticker	21-Aug	28-Aug	Change		Value	Impact		Comments
ANDE	$        28.20	$      32.92	16.74%		$             9,940	1.00%		Big volume leap Friday. $33 is break.
EGO	11.02	10.56	-4.17%		$             9,895	-0.25%		Riding 20-day (10.49) on coil now.
GDX	39.30	40.18	2.24%		$           12,161	0.16%		Moving out of consolidation zone (>$40)
GLD	93.65	93.87	0.23%		$           10,796	0.02%		Coming out of coil as well, needs $95.50
IAG	11.93	12.02	0.75%		$           14,821	0.07%		Looks to test new highs (12.36+) this wk.
MON	83.78	83.00	-0.93%		$           13,168	-0.07%		Stuck between 20 and 200 day EMA’s.
PAAS	19.52	19.99	2.41%		$           12,006	0.17%		Breaking out of EMA coils (20/50/200)
RGLD	39.50	39.95	1.14%		$           11,039	0.08%		Closed above 200 day but lagging peers.
SLV	13.92	14.50	4.17%		$           11,779	0.29%		Nice leap on volume Friday, targ: $16.04
SLW	9.37	10.45	11.53%		$           10,150	0.70%		Nice move Friday, over $11 = free air.
SSRI	18.24	18.28	0.22%		$           10,634	0.01%		Still lagging all MA’s, and peers.
TBT	49.55	46.74	-5.67%		$             9,311	-0.32%		Broke below 38.2% fib @ 47.20, 44.90 target
TC	14.29	11.98	-16.17%		$             9,861	-0.96%		Massive dilution effect from secondary
TCK	26.73	25.20	-5.72%		$           24,315	-0.83%		RSI turning back up again, could be time.
Cash (000)	$        8.63	$    12.64	0.01%		$         12,644	0.00%		Added another $4k+ with final NRP sale
AVG (weekly)			0.40%		$       182,520	0.07%
AVG (monthly)			9.91%		Actual cash
AVG (inception)			25.14%		on cash return	21.68%

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Thanks for waiting the whole day. Turns out you didn’t miss much on my “super-secret” pick of Beazer Homes USA, Inc. [[BZH]] today, although you might have been able to buy it at the lows of $4.01 had I mentioned it first thing like I thought I would. But let’s be honest, how many of you would’ve grabbed your cups at that point and drank deep of this possibly downswirling poisonous homebuilder??

That’s right, none o’ ya. Besides, I bot it at $4.21 near yesterday’s close (when I announced it on The PPT — are you subscribing yet??), so I don’t feel bad about letting you in on it at right around the same price.

Why Beezy? I have no idea, I guess the Inflation Gods are moving into even the crappy homebuilder space. The only thing I know is the charts are showing compelling interest and very close to “BTFO” levels at today’s close. Please to enjoy the following picture show… first the weekly for the price and volume overview:

Then the Daily to show the turtle head that caused me to take my “starter position” at $4.21

On top of this new pick, the Jacksons are starting to make noise again, with Silver Wheaton Corp. (USA) [[SLW]] and Eldorado Gold Corporation (USA) [[EGO]] making nice moves today.   Thompson Creek Metals Company, Inc. [[TC]] continues to be punished for the sin of issuing capital to Canuckistanian Securities Firms, may God curse their Yukon Cornelius beards to immediate dreadlocked disarray.    Soon, I will be forced to buy a tonne (sic) more.   We shall see.

My [[GDX]] call play is beginning to look nice as well, and I believe all will  be well with us if [[UUP]] continues to stay below $23.30.

Best to you all.

 

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While it may have seemed we only experienced a slight pullback day for the market, today was in fact a sad day for the Jacksonians, as we saw another original candidate get the old “heave ho” out the door for lack of performance.  I will admit, I gave Natural Resource Partners LP [[NRP]] a little more leeway than I did Tesoro Corporation [[TSO]] , as it carried with it a phat dividend (over 10% as of today) and it was a royalty play rather than an operating miner (much like fellow Jackson Royal Gold, Inc. [[RGLD]] is a gold royalty play), which I thought gave it some “rent safety” over the operators.  No such luck.

You see in prudent Jackson land, there’s only so much loss a play can take, and when NRP broke $19.31 today (a significant support level), it hit our stop, and we sold the remainder (207.555 shares) for a loss of 19.9%. Luckily, I only had 1/2 a position left, having sold the first half at $20.50. Still the bludgeoning (before dividend payments) was substantial.

What was I thinking picking a stock with a symbol so easily dyslexia’d into the acronym for National Public Radio, anyway?   Should’ve been a sign to me …

Luckily, despite these minor setbacks, the rest of the Jacksonians are hammering along hard enough to keep the overall returns over 21.6% since inception on May 1st. The Andersons, Inc. [[ANDE]] and Teck Cominco Limited (USA) [[TCK]] remain my top winners (even as I added to my TCK a scant few weeks ago at current levels, my blended return is still 40%).

I believe the gold and silvers are going to take off here as we head into the last months of the year, as they are wont to do historically. In that regard, IAMGOLD Corporation (USA) [[IAG]] , Eldorado Gold Corporation (USA) [[EGO]] and Silver Wheaton Corp. (USA) [[SLW]] are my top performers, with returns of 44.64%, 39.13% and 30.05%, respectively, since May 1st inception. Of those, I think SLW will have the greatest momentum as we head towards Christmas, because silver continues to be undervalued compared to gold.

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Speaking of gold opportunities, I threw out New Gold Inc. (USA) [[NGD]] yesterday, and although it didn’t move an inch either way today, I continue to think it a strong play here, especially on a pullback to the $3.30 area.   If we’re not that lucky, I believe it’s a buy over $3.55 as well. 

I also wanted to point out another junior that I think will be a mover going forward here — Rubicon Minerals Corp. (USA) [[RBY]] .   Have a look at the daily chart:

And really, I think the weekly should cinch it for you.  It’s so eeeeeasy– a cup and handle, for goodness sakes!  And on the weekly, no less.    My take:  wait for that break of $3.21, and then… blammo!

 

One last admonition — watch [[UUP]] tomorrow for your signal.  A break above $23.31 or so will mean a little bit more waiting on the gold selections.  But if  UUP turns down again– towards my target of $23.05, that will probably mark the break out run of a great many junior gold and silver plays.

Best of luck to all my Jacksonian stalwarts. 

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