Dispatches from the Road

 

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I’m on the road and the wi-fi is weak in this hotel room.  Therefore this will be tres brief.

Frankly, I dunno if it’s time to start climbing back into PM’s with a passion, but my guts says there’s one more shake here before we’re ready to reset.  If I’m wrong, we should know by the dollar’s return to the downtrend relatively quickly.

In the meantime, let’s not forget about our old friend, Mr. Egregious Interest Rates.  I like TBT here as a hedge against Bernankianism, even though it looks like we’re due a bit of a pullback in the next few days.

What’s lucky for us, is we are approaching resistance here, and after a pullback, the buy point should be rather obvious:

A break of that line, or a retest, should be a safe entry on what should become a long term hold for you.

Ciao.

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Don’t Look Now… it’s Silver Cher!
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Today’s downstroke rode the same tidal wave out that had been building up and cresting these past weeks and days.   Even I was surprised to see how much power that wave continued to exhibit all the way through this morning’s early peaks.

But you knew that momentum had to recede eventually, and SLW’s egregious heights over any semblance of “the mean” was as good an example as any:

EXK, our other junior silver darling, showed the same signs….

That should make for a nice entry… again.   And although the silvers were the drama queens today, even noble ANV looked to have a little bearish candle hung on it today.  Again, opportunity knocks:

And what, besides outsize momentum, caused these sharp rebounds today?  Of course it was your favourite fiat currency, the almighty U.S. dollar, rebounding out of a seeming death spiral in the low $76 region.  Know look at it:

This weekly chart gives the best perspective of all.   The dollar is obviously rebounding somewhat, but the downtrend is still very much in play.  In fact, I think the dollar will have a hard time getting past that 13-week EMA that’s been containing it for months, like a damsel in a tower.

I don’t believe that line will be crossed this time, either.   Look for a pullback from the high $78-$79 region.

My best to you all, trimmers.  Let the Cher be with you.

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[youtube:http://www.youtube.com/watch?v=WM1RChZk1EU 450 300]

The Greatest Hip Hop Video Of All Time… Do you Dispute it?

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And so appropos, no?   Can you dispute I got a million ways to get it?

Who holds the Jacksons, still?  Which of you?  

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I took some silver off today, specifically SLW, PAAS and EXK.  My positions in these were fecund and preposterous.  They were an insult to God, they’d grown to such metastisitic proportions.

So I reset on some.   But I keep all of my SVM, MVG, and SSRI, with an eye on adding again to all of them.

And even more so with the gold juniors.   Some have asked me, “what of IAG?” 

More of it here, good sir?

Yes, good sir, yes, yes.    And NG and IVN at any scant opportunity.   But above all, constantly feed RGLD. 

Outside these of the Precious, only MON, UPS and ANDE are attractive to me right now.  

Go on now, I’ve given you enough! 

Go!

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 Indeuuuud!

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Don’t get me wrong, silver will pull back almost immediately here. And gold should have a nice refrain as well. But all the Glenn Beck modalities aside, let’s not lose sight of the big picture here.

Don’t let the closet commie Keynesians who are currently plaguing the Fly ward you away from the nose in front of your face. It seems there are those who would hew to the belief that the sovrereignity of our currency will remain, unmolested by the tenets of common sense or basic economics. In the words of Lewis Carroll — “Callou Callay, oh frapjous day!’

Nothing to worry about here right?

But then, there’s that old bogey “empiricism,” creeping up to spoil their party once again. One example?

Does this indicate an overbought investment?  Well, sure.  For the last ten years now.   In fact, that’s why perhaps the silver sister has finally begun catching up, and the ratio between the two has begun shrinking.

But there’s still quite a bit of room to go:

Even silver looks a bit overbought right now, doesn’t it?  Yes, in fact, I may take some of my leverage off early this week as a result.  That means I’ll likely sell some of the AGQ I re-purchased in the $93 and $96 ranges, and maybe even sell my SLW December $25 calls as well. 

It’s not like I’m going to sell any of my core positions.  That would be foolish, given the disposition of our currency.  The DX-Y chart is what you should be watching, rather than the ephemeral explanations of the “cake and eat it” economics students who’ve recently appeared like noxious mushrooms on these internets.

Don’t let their quibbles with Glenn Beck or any other broadcast polemicist stay you from your review of the empirical data.  The dollar will bounce, likely at $74 or so.  But that gato will be expired before you can cash your small beer change. 

Friends, the dollar is the Dallas Cowboys of the currency world.  It may have another touchdown or two in its future, but those brief triumphs will be wreathed by tragedy.

Indubitably.

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I still like EGO, if you’re looking for a latter day saint.  Also, IAG is probably a pullback look. 

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Come, lads, and feast at my table at long last.   Rest your weary bones in the comfort of my Great Hall–Silverhalla– for it is the hall built by the metal gods Au and Ag for heroes who have fought in the great shield wall of Hard Commoditus, that great preserver of Empires and succorer of innocent children and midwives.

Those who have taken up hauberk and helm, shield and scimitar against the armies of the Mad Kings — Inflatus and Deflatus — shall be rewarded this day with an eternity of riches and smooth mulled wines.   Those also who have fought against those fierce Kings’ Champion, Bern Yankee,  and his much feared Quantive Eeze Garrison, will be welcome in my Hall, here and in the hereafter.  

True, it is gold that brings the wenches, and gold that has sated the hearts of  many the currency coveter.  But those who hie to my banner (featuring St. ElTee of the Blessed Rood)  will receive a far more useful reward in the Hall of my Fathers– the Great Hall of Silverhalla, aye.

Those lucky few, those sceptered Islanders, shall receive the Holy Stock Picks of Antioch, and be able to then hurl brickbats of bullion at thy enemies and thereby “snuffe them, in His Mercy.   For now is no time to loose one’s bladder in the shield wall, and cower at the hard paper truncheons of the Que Eeze… no!   Now is the time to strike!  And strike again for the promised marshall glories!

The glories of Silverhalla!   (Puts Silver horn to lips, blows four sharp blasts in succession….)

Behold!

Behold anew!

…and  Behold the next Great Warrior Chieftan of Silverhalla! (Still a mere boy, really)–

Now forth!  Forth for glory, and slay thine enemies and revel in the lamentations of their accountants!

Skol!

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My elation at Representative Mark Kirk’s taking President O’Bama’s seat in the Irish Districts of Chicago, Illinois away from the Democrat “Gangstah Bankah” Alexi Giannoulias, is somewhat tempered by the news that Senate Leader Harry Reid and the SEIU have managed to steal the elections once again in Nevada.

I have no further comment, save to say that we’ve much work to do, now that this piece of scum — who stood in the well of the Senate and said the Iraq War was “lost” while we had troops under fire — is back in his seat.

We must march on, that is all.

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UPDATE: Republicans have “officially” taken the 39 seats necessary to take control of the House…  with an overall projection total of about 60 seats, according to Fox Snooze.

Three times three!  

Huzzah!

Huzzah!

Huzzah!

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