Big Brown Breakout

 

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You probably remember this post from the last Thursday  where I posited that the $TRANNIES and their superstar leader $UPS were on the cusp of either breakout or break down.

Here was Thursday last’s potential bull flag on the UPS weekly chart that I thought might bode well:

Well today’s action may have “told the tale,” as good earnings news from UPS seems to have incurred one of it’s biggest single day moves in a year.   Look at the breakout from the handle pattern now;

Next stop is $65 and then some pull-back as per the mind of The PPT.   I think pullbacks on this belleweather should be bought however, as this is a significant move, and augers well for the late summer and early Fall market fireworks.

My best to you all.

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Step away from the rabbit…
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Pay no attention to Lady Mahket with the butcha knife.  This is the chop part of the summer, but I’m not fooled.  I know what’s coming this year and so do you.

It’s an American election and it’s an important one.   The forces of “status quo” are going to do what they can to make sure it happens in as stable an economy as possible, despite the double barrells of ObamaCare and Dodd-Frank that have been administered to our collective guts.

Make no mistake, we’re going to be dealing with those two awful — and I mean awful — bills for the next decade.  My hope is that the perennially corrupt Congress will be rendered poleaxed for years to come just in unravelling them both.   That is truly our best possible outcome, given the unintended consequences that have popped up even on the very first day of the horrific bank “reform” bill’s signing.   I point you specifically to S&P and Moody’s suspending their ratings for fear of being sued into (perhaps righteous) ignonimity.

This is what you get when you allow a group of largely innumerate corrupt Democrats (and select boneheaded Republicans) access to the vital wheels of commerce.   Truly, they are en masse, a shit show.   Tell me again how elections don’t matter.

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Surprisingly, I’m sure, you’ll find my answer is grabbing undervalued gold, of which we have recently come upon a trove.   First, the weekly $HUI is approaching oversold whilst bouncing off a crucual long term (34 week) moving average.   That’s been a healthy sign in the past:

Then, a specific recommendation, one of my favourite Jacksons is  a bargain.  Look at the weekly ANV chart for my take on the situation:

I am back home this evening, so I will try to catch up on some sleep and be here tomorrow for any queries.   Best to you all.

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Of my favourite (sic) PM positions there are quite a few that are “almost there,” for an optimal buy, according to my weekly (ie, “long term”) reviews.

And then there are two that I like for tomorrow. They are PAAS and ANV. I will look to add tomorrow morning. There are a couple that may need one more day (and it may not even be a full day) like SLW and EGO. If you can get RGLD below $43, you are one blessed by Fortune.

As for “rippers” that will be taking advantage of any continuing up move in the regular markets, CREE and VECO, the LED twins, are taking off again. I expect POWR will be not very far behind them.

Attendez!

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If it were the Fly

Who would take out your eye

And pass off agua as deuterium

Would you offer a plaint

Or call on a saint

In hastening aforesaid delerium?

Tonight there’s ’bout three

Who’d cite “The PPT…”

As proof of mandated change…

But evolution states it.

Though ’tis we who creates it,

And we who would merit “the strange.”

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Buy gold w. both hands… I’m off again this week and will try to meet w. you in back alleys.

All the best!  Jake

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The PPT

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“Heart Attack on a Plate” — Nom! Nom! Nom! Nom!

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Seared, medium rare dry-aged New York Strip (12 oz) is very good for a special occasion.  As are gargantuan prawns with hot hot blazing hot chunky horseradish cocktail sauce.  As are “tomatahs and motzz” (sic) w. heirlooms and hand made mozzarella. 

And let’s not forget a flagon of ruby red claret to wash it all down.

But only every once in a while, or that stuff’ll kill ya.

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Speaking of “you only live once,” (I know you just said it), I think that’s what we’re looking at here in this late summer coiled up rocket rally.  It may flare out and die, but I think it’s just as likely to continue to unfold into the early autumn (!!), and here’s why…

We’ve talked sentiment, and it was hang over the banister and puke ugly here about two weeks back.  As ugly as it’s been since before the March ’09 phoenix run.    Sentiment is still bearish — note how many skeptics there are, even among the storied stock pundocracy? 

We’ve talked dollar, and it continues to melt here.  Down another 22 cent (sic) today, to $83.43, I don’t think we see relief til at least $82– the 200 day EMA.

Now let’s talk our market leading Trannies ($TRAN).   They continue their stealthy moves after the non-confirmation of the February lows a few weeks back.   Now the weekly has them taking out a significant fib line — 61.8% — after bouncing at the 50% retrace.

If we hold above that fib line this week, we could be heading all the way back up to the top again on this coil explosion.

And let’s not forget the Grandaddy (Mammy?) Trannie — UPS, the Men in Brown.  This is another long term hold of mine, and it’s like XOM or CHD — always reliable.  Check how it’s testing the handle formation here, and keep an eye on where it goes.   Given the similar stochastic formulation to the $TRAN above, I see a similar breakout coming:

In other news, the PM’s just stood there, which is fine, and MON is busting the heck out, up another 4.5% to $54.61.  I may have to look at this one again for you, with gladness in my heart for those desperation buys in the low fitties and high fowties (sic).

I’ll be busy all day tomorrow, but will try to check in.  Best to you.

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Miraculous events characterize  our lives, and I’m not just talking about market stuff here people. I’m talking about real life arcana, too. “Flashes of the shutter” kind of stuff.

I got some great, great  news today, and it had nothing to do with bidness, or even this not-so-miraculous market revival, although both of those subjects have been full bore eggsellent for me recently, thanks be.

No, I’m talking unexpected news from a friend that made my week.  I’m hoping he’ll perhaps come to these boards and share some of his wit and wisdom with us.  We’ll see.

Back in quotidian world, ADCT (up 41%) was bought out, in miraculous fashion, by notorious planet eater Tyco (TYC). Are we back in the late nineties again? Look for more big M&A’s to continue to power this funny money market. Assets aren’t cheap, but the fiat is.

For my part, while I wait for my golden babies to take off again, the names I gave you last week are ascending like Icarus on a cloudy day. Remember what I’d said about ENTR?

It’s still a buy here, in my humble opinion.

Then there was POWR, which I rolled out at the same time as ENTR….  I think it’s just a little bit behind it’s cell mate, but geared for a similar breakout.   Check the signal:

The explanation for these phenomena is not mysterious.   The dollar, which I thought would breach $85, if you remember my chart from the other day, before returning back to it’s down sloping ways, only made it to $84.56 today before dropping almost a full dollar (no pun intended) from there.  

Disgraceful, but not unexpected.   Trade accordingly, and remember the key Jacksonians.

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