Jake Cashes in some Chips for “Butter & Egg Money.”
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Yes, I’m raising more cash ovah heah, and even buying puts for the first time since the March ’09 lift-off.    Sure I’ve sold calls in various weighty PM positions before this, but today I actually bot a starter in January [[SPY]] puts.   100 Jan 110’s @ $2.82-.85, to be exact.  

Was I early?  Sure looks that way.   That said, I think we’ll have a dollar bounce here very soon, and my purchase will prove propitious.   That said, I won’t add the second half until  I see a break, ovah heah.   Note the evidence:

In the meantime, I am continuing to sell down exploding higher PM positions, much to my rue and chagrin.   I just sold 2k more Allied Nevada Gold Corp. [[ANV]] @ $13.97,  2k more Eldorado Gold Corporation (USA) [[EGO]] @ $13.92 and 4k more [[EXK]] and Golden Star Resources Ltd. (USA) [[GSS]] at $3.91 and $4.23, respectively.

I cannot bring myself to sell anymore Silver Wheaton Corp. (USA) [[SLW]] , even as I know it’s the right thing to do at this juncture.  

My advice?  Now that the Fly is legitimately cussin’ and hollerin’ I think it’s time to raise cash like it’s “bread day” in Zimbabwe, people.  

In the least, it will be good practice.

Salud.

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There’s room for Every-frickin’-body!
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It’s quite likely I’ll be busy today, so I wanted to throw a couple of brontosaurus burgers out there for your barbecuing pleasure in case things get all jiggy like yesterday.

‘Cause, make no mistake, we are entering into primo deal season here, if all of my bidness (sic) radar array are working in proper function.  My group is busier than a one-armed Palo Alto Perma-Bear at a self-congratulatory back-patting contest, and if the middle markets are moving, then I’m going bet the big boys have more cooking than just Uncle Warren’s Train Set purchase yesterday.

For one example, look for deals in the edumacation business, for one thing — companies like Apollo Group, Inc. [[APOL]] and DeVry Inc. [[DV]] and Career Education Corp. [[CECO]] have all been beneficiaries of a sea change in education delivery in the last decade or so.  

However, I think the paradigms are going to change even more drastically going forward.  I am getting this intuition from the myriad start-ups and later stage deals I am seeing in this space over the last 12 months.   As a result, I’d look for tuitions at all but the most exclusive post-secondary schools to come down in the very near future.   As a father of four near-genius children, I couldn’t be more pleased.

That aside, I think there’ll likely also be acquisitions in the Precious Metalspace as well,  as the various hedged and non-hedged behemoths squat and mark their territories by gobbling up junior miners with promising cargoes of “ounces in the ground.”   

To my chagrin,  I have no insight from an M&A perspective, as the majority of that deal making occurs north of our borders in the frozen outbacks of Canuckistan, completed by cigar-puffing investment bankers wearing snow-blindness goggles and polar-bear fur pantsuits.

Therefore, I can only point you out the promising junior and middle sized firms that may be in the snowmobile screens of various behemoths like Barrick Gold Corporation (USA) [[ABX]] , Newmont Mining Corporation [[NEM]] , Goldcorp Inc. (USA) [[GG]]  and AngloGold Ashanti Limited (ADR) [[AU]] .    These include:

Golden Star Resources Ltd. (USA) [[GSS]]

IAMGOLD Corporation (USA) [[IAG]]

Eldorado Gold Corporation (USA) [[EGO]]

Silver Wheaton Corp. (USA) [[SLW]]

[[CDE]]

Hecla Mining Company [[HL]]

Exeter Resource Corp. [[XRA]]

[[BAA]]

Ivanhoe Mines Ltd. (USA) [[IVN]]

[[EXK]]

[[PAAS]]

Silver Standard Resources Inc. (USA) [[SSRI]]

Compania de Minas Buenaventura SA (ADR) [[BVN]]   ———->>>> note: this one can be an acquiror or an acquiree, given it’s geographic interest.

and of course, the “catch all”  — [[GDX]] .

There are quite a few more that I’ve left off as I’m rushing, so feel free to add your own, and I may or may not add or comment on those later.

Best to you all, and one last thing:  beware the bear traps — and those calling petulantly from within them.

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Update: In a shocking and unexpected move the dollar is down again [[UUP]] .

Who could’ve seen it?  Heh. 

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Happy Halloween Surprise Mothah-Cluckas!
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Okay, just burn it if we don’t bounce here. Here’s the amazing thing about this Halloween Surprise we’re experienceing right now… someone almost predicted it.

And I say “almost” only because he said we’d retest the lows today and then rally all next week, and obviously, only Fly and his Time Machine can check that part out yet.

Here’s the thing. He said this when we were hitting Wednesday’s lows, and he predicted yesterdays’ massive rally and today’s retest!  If he hits on all cylinders  with this prediction, we may have to give him his own blog.

But let me tell you Fly aint gonna like it.

“Developing….”

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Let me tell you what I’m doing right here and now… I’m “wading in.’   I sold some more of my options yesterday under the “too good to be true” axiom, thinking we’d at least have a little pullback from yesterday’s move.

Well I guess we did have something didn’t we?     Well, we more than tested Wednesday’s lows (again, as mystery guest predicted) and even filled that October 6th gap.   We are now on the march back, however tentative, and I’m adding to my PM’s here, and other Jacksons.

I already bot 200 more [[AGQ]] this morning, too early again, at over $55.   Dumbass, right?  Well, I’m not too worried about AGQ long term, truthfully.

I am also eyeing my “strength” Jacksons, including suddenly cheap silvers Silver Wheaton Corp. (USA) [[SLW]] , [[EXK]] , [[CDE]] and on the gold side Allied Nevada Gold Corp. [[ANV]] , IAMGOLD Corporation (USA) [[IAG]] and Eldorado Gold Corporation (USA) [[EGO]] .  

Let the price of gold be your biscuit here… it’s not even coming close to the lows of Wednesday, which tells me this is one more false “whip” of our secular bull.   Don’t get bucked.   Those of you who were lucky enough to sell some yesterday (and even the day before) deploy cautiously, but wisely.

And with great vigor.   As your cautionary flag watch for $22.70 on [[UUP]] — that seems to be holding off the Huns for now. 

Best to you.

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Jake Pours A Special Treat for the Bears

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You can tell by the twinkle in his eye that old Pat Boone’s having a special day.      And so are tthe loyal Jacksonian JakeGint Brigade.

Gold is now in new all-time high territory @ $1041.70 an ounce, having smashed the former $1,033 ceiling with gusto this morning, as our friend, Mr. Dollar plummets once again to it’s flash-paper grave.  

In the meantime, silver is the purchase of the century as it still lags gold in targetting and achieving it’s old $20+ highs.    Silver is still one-sixtieth the price of gold as well, compared to more historic ratioss of 40:1.

 I’m still targetting a $21.95 price for [[UUP]] , and we may break to new lows from there, thanks to swarthy men wearing bedsheets and mis-treating their camels half-way across the world.

How dare they object to our running off sheets and sheets of green paper with Ben Franklin’s visage on it and exchanging said specie for their greasy petrol?   Don’t they know what attractive wall covering that shade of grey-green can provide?

Not to mention window-treatments.

Not to get all “stuffed-in-the-gut” about how all my dollar defense dragons are tearing ass on this market and making investments in TV-tubes and natty gas service companies look like so much Baltic Avenue rowhouse property (we have Mr. Boone for that purpose  anyway), I’d like to point out some exaggerated gorillas whose armpits you may wish to shave at some point today…

(That means “take some fiat off the table” for the metaphorically challenged)

Silver Wheaton Corp. (USA) [[SLW]] will likely come back to it’s breakout at $13.35 or so.

Hecla Mining Company [[HL]] is a crazy stock and will likely meet stiff resistance at $5.00.

Wait for a break of $21.96  to get back on [[CDE]] , otherwise, it should fill that gap again at $20.41

Silver Standard Resources Inc. (USA) [[SSRI]] has an optimal entry at $21.75, but otherwise it should get held up at $23.25 or so for the near term.

[[PAAS]] is “BTFO,” but will likely return to it’s old high of $24.81 before heading to new pastures.

Golden Star Resources Ltd. (USA) [[GSS]] will be BTFO at $3.71, but is a buy on a pullback to $3.38.

That’s enough free fritatas for now, pikers.   Sign up for The PPT to get the full-fire hose effect of instant portfolio nutrition.

Off to commiserate with mountain dwarves and other horders of glittering treasure piles.

Slante.

 

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Just remember, all this bullcrap you are seeing today is about the dollar and it’s relationship with the rest of the world economy.   If it rallies hard here, it’s because the banks are throwing a scare into the Deflation-minded.   But if you have any questions about where the Fed is willing to go, please hit yourself on the head with a ball-peen hammer for “clarity’s sake” and consult this worthy chart once again (hat tip to DPeezy and ZH for posting yesterday).

If you are really confused, I would get thee to The PPT for a quick infusion of “brain trust.”   The wins in those fora lately have been breathtaking.  It just gets better every time I go in there. 

Back to the dollar rally — which I’m just not sure is for real, frankly.  In fact, it strikes me as more “seasonally oriented” than anything else.   You know — “September sucks, sell, sell?”   My opinion?  That bit of conventional wisdom and a box of Cracker Jacks will keep the monkeys at the Zoo from self-pleasuring, but it will get you little else in this Fed-governed market.   No, the Fed’s first job is to keep the banks liquid, credit spreads tight, and the FDIC afloat.   If you think they won’t sacrifice the dollar to those ends, then please repair back to the chart above for further ball peening.

Granted we are at a critical juncture, as you can see from the chart below.    We are right up against a long term down trend line (at about $23.45) on the [[UUP]] .  After that we have the near term 38.2% (strong) fib line at $23.57 and the 50 day EMA at $23.60.   I would tend think we have officially “bottomed” in the dollar for the near term if these prices are breached on volume.

 

Both the prices of gold and silver  are holding up here as well, which gives me some indication that if money is flowing back to the dollar, it’s not at the expense of the precious metals.   This should offer us some opportunity in our miners going forward, and even today.   The [[HUI]] is bouncing off it’s trendline as we speak.   Happy hunting.

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It’s 1:50 PM and I see [[UUP]] banging up against the downtrend line and fully expect it to turnover here right now.

Target $23.05. Good time to grab some of your favorite options play for quick snicker-snack of your Vorpel blade.

“Abort! Abort! Abort!” signal is upon a break of our aformentioned $23.28 to the northside.

I am looking at [[PAAS]] , Silver Standard Resources Inc. (USA) [[SSRI]] , Silver Wheaton Corp. (USA) [[SLW]] , and [[GDX]] .

Caution: Follow me at your own risk, and make sure you Wait for the rollover!

Best to you, Jake out.

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UPDATE:  Bot 50 Sept $34 calls on GDX @ $5.60 .   Caveat: If you follow me into GDX you may contract “Midas Touch Syndrome” and end up turning your favourite (sic) poocho into a very valuable knick knack, and you may lose money too.

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