You Know What to Do

Not General Jackson, but “the Earl” himself!
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Oh my, did you see that egregious sell-off in the last hour of trading?  

My heavens, I almost had the vapours (sic).   I high-about had a hernia.   In a fit of panic, I frisked the cat thoroughly for hidden weapons.

Almost everything sold off, including our friends at the [[SPY]] , our “tell” index.   

Well, almost everything.   [[BIOS]] was strong into the close, almost as if everyone was watching all the buyouts happening in its industry.   (That’s The PPT information I’ve been linking in the notes, fyi.   Have you signed up yet?)

But you know we’ve had these swoons for months now.   In fact, I count seven of them in the last three.   And yes, we are nearing a dollar bottom, so there’s likely to be some weakness here,  just as we’ve had those seven times in the past.    What’s important is that the trend, as herky jerky as it’s been has stayed UP (thanks to [[UUP]] , maybe?

Check it, Chekov, and chillax:

 What to do?  Oh what to do?

Sell some calls, trim some wins, stack your bologna for the next round, maybe?

Better yet, consult with the earl for your favourite (sic) bread-bordered meat & cheesy comestible.  

I am out all day tomorrow on a coastal state excursion, so my interraction will be spotty.    I will be checking comments.   Ciao.

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Breathe in, breathe out…

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Rather than torment you with additional gold and silver picks you should have purchased months ago (like Allied Nevada Gold Corp. [[ANV]] and [[CDE]] to mention two non-Jacksons that have been knocking the leather off the Rawling’s “A-Roid Style”) I figured I’d revisit two recommendations I still like and think will make a move as soon as tomorrow.

The first is [[BIOS]] which is a pharmaceutical management company that I’ve mentioned before, and which I think is finally ready to make it’s debut in high-falutin’ BTFO Society.    Below is the daily to show how close it came today to breaking out.   I think with the Apple Inc. [[AAPL]] news, we may have our chance to trip the light fantastic.   Earnings are slated for October 30th (a Friday) and I think we’ll have a run before that date.

What’s nice is that this breakout area as shown will likley be returned to — however briefly — for the requisite “bounce.”    If we don’t break tomorrow, you can see the rising support trend line for additional entry targets:

And here is BIOS’s weekly, showing the free air gap available to almost $8.70.   Again, I expect it will pull back at that point, but I like this name, and this company for the long haul here as well:

Second, Goin’ Fawr, the Canadian Loon, mentioned the rare metals today.  True, they’ve been hot.   Sociedad Quimica y Minera (ADR) [[SQM]] allows for some lithium investment while also being a great way to play agriculture (including potassium and nitrate fertilizers) South American style.    Like Aracruz Celulose SA (ADR) [[ARA]] , SQM can be an alternative to POT and MOS by avoiding nasty dollar based currency associations.

Dig the muy importante 61.8% long term fibonacci level at $39.89.   Gentlemen, if there were anything that I could drill into your heads, it would be the importance of achieving, and then beating that line.  

We’ve achieved– you can see in September, we briefly broke above $40.

We’ve retreated these last few weeks while beginning to build “mo” again.

Gentlemen (and ladies, let’s not forget the lovely lovely ladies), I think we are ready to go, maybe as soon as tomorrow.

Dig the scenario, Daddy-o:

Tomorrow should be momentous for the above stocks, as they are poised, as it were “on the edge of a knife.” 

Let your vorpel blades be sharpened. 

Snicker-snack.

Snicker-snack.

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This could end badly!

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Most of the time I’m giving you the long term perspective, which is what you should be thinking about with regard to the Jacksons.

But I figured it might be novel — more pulp fiction than Doestoevsky — to show you what I’m watching on a intra-day basis.  

For example I’ve been waiting for a couple of days for [[GDX]] to break out of this pullback downtrend.   You can see the targets I’ve illuminated for the short term.

The downside to this analysis is that it can turn to garbagio faster than a blues singer on meth.   So it will be an interesting — if short term — experiment to see how this play works out over the next few days.  

The key, I believe, will be whether the volume picks up here, or dies out as the dollar finally rallies.   Stay tuned.

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Giants got drubbed for their first loss of the year. Ed Hochule’s crew called the worst game I’ve ever seen (the “phantom hold” call negating a brilliant Jacobs catch in the end zone will be talked about for years to come), but even without that egregious Carlos Marcello-like fix, I don’t think the Giants could have stanched such a brilliant performance by Drew Brees.

Conclusions?  New Orleans is for real and the Giant secondary is extremely suspect after this week.

Now I will retreat into my sweat lodge to meditate on the coming days of trading.

{Aside to Fly — you are invited. It looks like the Titans may want to de-list this year.}

[youtube:http://www.youtube.com/watch?v=V-ai0OyCh5c 450 300]

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Some have grown fretsome and sold their gold miners to me in short sighted paroxysms of “management.”  They — these “some” — feel they are “managers” and therefore must “manage,” long term values be damned.

But let me ask you this:  if you were given a goose that laid — quite literally — golden eggs,  would you sell said poutlry for a handful of beans and a wide screen TV tube?

Would you wring it’s neck for a quick meal of pate and buffalo wings?

No, of course not.   You’d husband said semi-aquiferous creature and feed it only the best seed corn and malted beverages from the Villages of St. Ides.  

You’d sing to it.

Two charts I’m featuring  tonight are a perfect illustration of the opportunity we have before us.   The first, I’ve been mentioning for weeks.   A “latter day Jackson,” Allied Nevada Gold Corp. [[ANV]] is perhaps my strongest gold pick at the moment.  

It may pull back some more here, but there’s no question that this weekly chart is showing a trip to uncharted territory, on uncommon strength:

My second chart is a newcomer, courtesy of The PPT, and perhaps as strong as ANV at this moment.   Exeter Resource Corp. [[XRA]] is a new favourite of mine, and an irony to boot.

I appreciate irony, almost as I appreciate break-outs in trending stocks who also happen to be in super bull segments.

Look at this chart — this weekly chart remember — and ask yourself again.   Why would I want to concern myself with any other sectors at this point?   Why would you?

As they used to say on President & 5th — down in my old neighborhood in Prospect Park, Crooklyn — are you fookin’ kiddin’ me??

Be well.

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Zut, Alors!

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Some of you may wish to take this opportunity to weep like a disgruntled Maginot Line engineer a week after the Blitz (see above).  

That’s right it’s crying time again.   That time when the gold and silver bulls that as of late have been so docile and yielding of fresh milk (as far as you know) have now grown into raging Tauruses (Taurii?), trampling your bloated carcass and rifling your pockets for loose Good & Plenties.

But let’s check our calendars shall we?   Has Sinterklaas arrived already, muling his burlap bag of kittens and freshly polished wooden clogs?  

Has Mother already placed a large roasted poultry on the dusty “for guests only” dining room table and surrounded it with gut-stuffing, cream-embossed ancillary vegetation  seen — thankfully — only once a year?

For that matter, have even any cleverly disguised neighborhood brats beaten on your manor door, claiming King’s Right upon any nougat resident?

No?

Well, then, heck — go order a Kung Pao or something.  Take the day off.   Feed the birds.    Go have a pigeon sandwich with pigeon sauce on the side.

Or if you’re of a mind, and have recently grubbed some coin selling an egregious biotech hand grenade with your one remaining three fingered hand, see if there aren’t some glittery bargains out there you may have missed the first time around.

Caution — nothing’s really much of a bargain, valuation wise.    To buy here you’ll have to accept the thesis that we are “dollar unhinged” at this point, and that gold and silver are going quite a bit higher.   If you’ve been with me since inception, you’ve probably bought into that much. 

We’ll look at the dollar later tonight.    There will be a low and a rebound, but I don’t think it’s coming until [[UUP]] is down below $22.00.   That said, we’ll remain cautious.

There’s not a ton out there that I’m eyeing to add, but that’s only because I’m so “jug full” at this point.     I  continue to think the silvers offer the best opportunity, so I may want to look at the double POS(ilver) [[AGQ]] .

I also think [[PAAS]] is an opportunity here, thanks to yesterday’s sell-off on the merger news.  

[[CDE]] is hardly taking a breath (and I forgot to include it in yesterday’s list, my bad).  

 Silver Standard Resources Inc. (USA) [[SSRI]] has been lagging, but it’s known to catch up rather quickly. 

  Silver Wheaton Corp. (USA) [[SLW]] is of course my favourite (sic) silver,and don’t forget mighty mite [[EXK]] .

On the gold side, my current favourite — and non-Jackson — Allied Nevada Gold Corp. [[ANV]] is pulling back here.   I also like Yamana Gold Inc. (USA) [[AUY]] and [[BAA]] on this pullback.    

Of the Jackson golds, Royal Gold, Inc. [[RGLD]] is “the one” I choose above all others, thanks to its royalty leverage.   IAMGOLD Corporation (USA) [[IAG]]   and Eldorado Gold Corporation (USA) [[EGO]] have also been champions and will see the 20’s by Christmas, in my opinion.

One last thing, platinum is really picking up after lagging here, and I think  [[PTM]] is very close to “BTFO”  in the $16.50 area.   This is one to have in your portfolio as a “core holding” along with [[SLV]] and [[GLD]] , in my humblest opinion.

That’s enough for now.   Go to the boulangerie and weep over an anisette and black-black coffee.

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