I’m really juicing my returns!
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I know, I know, so few of you even watch baseball anymore… It’s more than likely that this reference is something of a stretch.
Better I should stick with the metaphor of football, with its place of honour (sic) and royalty amongst great American sports, and it’s apt illustrations of long bombs and crashing sprints to the goal line.
But for now, humour (sic) me, and act like you know what I’m talking about when I describe an increasingly obscure sport played by men in tight knickers carrying large whittled pieces of timber, who seek to knock a tightly wound and sewn sac of leather onto a perfectly mown lawn, preferably with no interference by opposing knicker-clad men who have handicapped themselves with enormous envelopes of leather appended to one hand .
It’s not unlike “the jai-alai,” in that respect.
In recent years these men, perhaps grown jealous of their larger athletic compadres playing in the NFL, have taken to augmenting their physiques with such muscle enhancing chemicals as horse hormones and testicular steroids. One such famed participant was Mark McGwire, a now near-forgotten and disgraced performer for the St. Louis Cardinals, who put on so much additional mass via home chemo-therapy that he began to resemble the famed Michelin Man of French tire hocking renown.
Then he broke Yankee Great Roger Maris’s single-season home run record and marked the beginning of the end for American baseball.
But enough of that funeral oratory, as I only bring up Mark McGwire to remark upon how easy it seems to have gotten to knock home-runs in the precious metal space. So easy, in fact, that I remarked in The PPT yesterday that it was like watching the aforesaid McGuire hitting warm up fungoes in batting practice, or better yet — easily winning the Major League All-Star Game Home Run Derby almost every year he entered it.
But in the market, things are not supposed to come this easily, and so my mind has strayed to areas of oncoming resistance much like a hobo seeking lights at the far end of a train tunnel. Remember, there will be pullbacks, and I think our friend “Baby $HUI”can be our guide again in this regaurd (sic):
My best guess is we run to that first line of resistance as depicted on the weekly above, and then fall back to the trend line. So if you are looking to unload phat options positions that have grown unwieldy with greasy profits, your window may be approaching.
There’s also a chance that the dollar dumps with the ferocity of an aging bull elephant beset with cholera. If that happens we may run all the way back to all-times highs as featured on Saint Paddy’s day of 2008 (and illustrated in red above), when oil was peaking at $147 a barrel.
Word to the wise — oil is half that now. Act accordingly.
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For specifics, silver is still lagging gold, which as we’ve discussed, has broken to all time highs and is now over $1,061 an ounce. Silver remains below $18, and it’s all time high is $49.45an ounce. That’s why I’m on those stocks like Woodshedder on a corn-dog.
In order of immediacy, I like [[PAAS]] on the sell-off, Silver Standard Resources Inc. (USA) [[SSRI]] on the pullback, [[EXK]] , Silver Wheaton Corp. (USA) [[SLW]] and finally the dog, Hecla Mining Company [[HL]] .
Also, on the gold side, I have to make a shout-out to favourite Allied Nevada Gold Corp. [[ANV]] and new The PPT find Exeter Resource Corp. [[XRA]] which is up about 25% since being singled out by The PPT early last week.
Last, I am accumulating [[TBT]] for the near inevitable rise in interest rates. I added 1,000 more yesterday.
Best to you all.
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