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Ah, alack and alas! The world is melting down again, and I think we can say we’ve entered into a bear phase, ovah heah, if not a full blow bear market. I’m not going to show you the charts, as I haven’t annotated them, but we’ve got bear crosses on the major markets and the Transports — up to an including my beloved UPS are leading the way down.
Like in mid-2008, we are showing signs of a true Dow Theory bear episode, and who knows how long this one will take to exhaustion? We’ll have to play it by careful ear as we did in 2008-09, when I was a painful two and one half weeks early in getting back in.
In the meantime, like a fine-toothed cyborg marinated in Gatorade, the price of gold (POG) continues to break to new highs despite everything else melting around it. Silver, too, is being dragged along, if at a slower pace, which is driving our Gold:Silver ratio higher… to 45x at last count. You may recall when silver got to 72x the POG during the last extremis… I don’t think gold will break that far away from silver again…. but if it does…
I am continuing to take this opportunity to either sell or hedge my miner positions here, as I think they are not eager to participate in what may be the last rally for gold for months. This gives me pause, and it should you as well.
On the other hand, I continue to see setups (AUY, NGD) in the mining space, so I will endeavor to keep an open mind. One thing I am assured of, however, is that I should be trimming my non-metal positions, no matter what happens in the PM sector. The regular market has become a toxic swamp, and you are better off picking up limited short positions (like SKF that I bot today).
Stay alert, and I will try to do the same for you.
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Senator Gint, you must post earlier. My posts spend precious few moments at the top, due to your inability to maintain regular, iBC, work hours.
I have a real job, not a union gig, Civil Boy.
Besides, tonight was Poker Night. 😉
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Shed, I suspect the Senator composes early in the day, then sets his highly customized software to automatically snipe your nightly blog post whilst he slumbers. 😉
LOL. I’ll get Jeremy to work on that… “AUTO-SUPERCEDE”
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any target for $skf
Not yet, but I think it could get into the $200’s again with another bank meltdown.
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Why not FAZ then sir?
And when you say months, you mean if gold gets taken down with CME stunts it’ll base out for months? I say any pullback to around 1750 is a buy. Silver looks much weaker.
I’m mostly in agreement with you on the gold/silver. However, I will stick with Skiffles over FAZtardation, as I don’t have the time to be wed to my monitor all day long watching that hissing hand grenade explode and implode at regular intervals.
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Over the past 10 years FDX has killed UPS, keeping the industry constant. I can infer why you hold it, but seriously, what has brown done for you (recently)?
30% of fdx revenues originate from the post office……….go to any post office across america,then try to send an envelope mailer in a ups drop box..it will never get sent,because the only drop box outside of any post office is an fdx box………..where’s the ups box? …….also, ups created 30k millionaires with the strike of a pen,for their own employees. the only thing you’ll get from fdx is, your a contract worker, and nothing else.
We held pre-IPO shares.
UPS has been berry berry good to us.
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Well, from where I sit, which is far into the weeds, there appears the potential for an unmitigated meltdown. Common sense tells me that the central planners have really screwed up.
Of course, far smarter people than me have continued to rally around the Keynesian ideas that were supposed to lead us out of the fiscal swamps and into fields of fresh daisies. We unfortunately have people in power with Socialist tendencies and incompetence for business.
We are now suffering from their failures and idiocracy.
Between Bush and Obama it is astonishing that we have been able to plow through the sewage as best as we have. Our current “leader” is a bungler, an amateur. He sees no remedy for this mess than more government intervention. And we will welcome it from their Hole in Jackson.
Why is it more important to prop up the banksters and Wall Street with consistent stimulus money than it is to strengthen the money that you earn so you, the average family, can live a better life?
The mighty dollar will continue to suffer and we right along with it. There is no reason for us to be paying $3.70 for gasoline. I would take $1.50 cereal and $2 gal milk and $1.25 gasoline and 4% savings any day over this bullshit market.
Hope springs eternal, or something like that. I’d like to think that this is just a bump in the road and we will adjust and get ourselves right. Nothing goes up forever. But it sure seems like we have been going down for a long time.
The elites kept saying ad nauseum that we pulled out of the deep depression of ’08-09. Maybe now we are going into a double dip. Well I don’t think anyone outside of Wall fucking Street thought that at all. The recession never ended. And things never got better no matter how many damn Deck shoes and iPads were purchased.
So now here we are. Here I am. I have 80% of my retirement and savings sitting in cash. Each day it is worth less and each day gold screams higher. I will not mark the top of gold by making a purchase even though I will probably regret it as it sets its sight on $2K and beyond.
Until we have a government that is willing to admit central planning is a failure we will suffer.
As long as the people in Obama’s administration believe that government creates jobs then we will suffer.
Until taxes are reformed and become competitive we will suffer.
As long as bureaucrats create job stifling and wealth crushing regulations we will suffer.
I will look to survive the incompetence of government and cronyism of Wall Street and banks as best I can.
I bought TWM yesterday. May as well slide into SKF too.
their resolve is to take my generation and screw it up so bad,that by the time so sec comes around we will suffer with less than half of what we would normally get,if in fact we can stay employed and maintain a decent wage. i have a good buddy that used to work with valerie jarret at a place called habitat. all i remember him telling me that when she was hired,, all she did was “bungle” things up. she was hired because of minority status. everything she touched turned to shit. and this was 16 years ago. how funny how shit has turned out………..just wait till this administration comes back home to chicago,we’ll have her, this idiot that we call a president, and his buddy rahm emanual………..i am making plans to leave chicago after living here for over 40 years. i just cant imagine living in this city anymore knowing how these three play together. this city will turn out like another detroit,or cleveland…………….
I’m astonished you’ve stayed so long.
All of my friends, save for the one who is a very successful North Side plastic surgeon, headed to Wisconsin or Tennessee (or further) years ago.
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Heh, moved from ‘bama to Georgia up to the Volunteer state. I can’t imagine living anywhere else in the States. I like my people. Still a majority of folks who view Wall Street and DC with a healthy amount of skepticism and can take care of themselves.
That number, of course, declines as the herd gets more and more comfy with taking, but there are enough who believe in God, family, hard work and bullets to suit me.
i stayed because i thought i’d have a relationship with my 3 daughters…….i dont,so i just want out.like yesterday.
Sorry to hear that. Family’s important.
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Great goose-step photo!
Yeah, it’s hard to find one that’s not too martial. I laughed at this one.
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Jake, you seem a bit dubious over the prospects of the prospecting outfits. It would seem to me that the miners would rise due to lower costs to fuel their operations as well as higher PM sales and prices.
My amateurish means of analyzing the situation comes to the conclusion that now would be a time to consider purchases. To me it’s like oil going to $170 yet SLB staying at $70 or BHI at $60. It doesn’t make sense.
In your analysis and experience do you see gold and gold miners higher, say 1-3 years out? Do you feel like gold reaching a near term apex, “in what may be the last rally for gold for months” is a much needed pause, or is your thinking that gold will decline substantially?
I think they are all due a pullback and the lag in the miners is sign of an impending move down.
Could be, however that the miners are about to catch up in a fast way.
It’s consternating, I tell you.
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Gold breaking out big again with Silver now finally following suit. Even names like SLW are breaking out. Are you still looking to trim miners now Jake or are you more reluctant??
Well, I haven’t trimmed anything today… 😉
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http://www.zerohedge.com/news/bank-americas-dead-drop-rick-perry-we-will-help-you-out
if you ever watch the history channel, and they do that “antichrist” thingy,the person that is supposed to be “the savior”,who is actually the antichrist,looks just like perry. acts and says and poses just like the antichrist in the episode
There are a large number of folks on that site that desperately need to get a life.
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Agreed. But the video is interesting/bizarre.
He’s been designated as “the fixer” by corporations bearing gifts …. a real candidate to oppose Obama, oh, and remove the ankle bracelets.
Mark Steyn is reported to be filling in for Rush on Monday.
Steyn should have his own show.
He’d beat out Rush within a year.
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RLGD ended up at $70 even.
Maaaaavelous.
UGGGHHHH
when this is your best job prospect…
http://www.dailymail.co.uk/news/article-2026964/Susanne-Emans-bid-worlds-fattest-woman-52st-mother-2-supersizing.html
One of the reasons I’m not a fan of Perry is his Gardasil vaccine mandate
http://michellemalkin.com/2011/08/16/rick-perrys-bad-obama-style-medicine/
Goosestepping is always funny…. $SKF ?? holy shite
I always learn something from the Senator. Thank$ a million.
“If I have seen further it is by standing on the shoulders of giants.” – Sir Isaac Newton.