[youtube:http://www.youtube.com/watch?v=CwpdGyIY2fQ&feature=channel 450 300]

This is pretty incredible, especially considering it’s from CBS’s 60 Minutes…  Watch the whole thing if you can.  Sobering.

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Feel free to pay attention to all the goings on in this weekend’s G-20 Meeting in Seoul, South Korea.  It’s said they will “contain” this current race-to-the-bottom devaluing fest we’ve seemed to have ignited in order to keep our mortgage market afloat.

I have other ideas, however.

I will instead sacrifice a small goat in a special backyard Harvest Celebration in hopes the the Great Pumpkin will descend into my wife’s tomato gardens, and fix all of our U.S. currency iniquities without locking us up in a stockade in the Hague or sending us to plantations in Dominican Republic to hack tall cane for short beer.

I really believe this is the wiser strategy, and what’s more, it seems goats are running three for six dollars down at the Kroger this weekend.  That leaves two for milking as a bonus.

The dollar markets are already returning to form this evening, and they are down below $77, again, as I type this.   Here’s what’s got me scratching my ribcage like I’ve got a needle-sharp case of the Shingles:

The prospects for the plummeting dollar may change by tomorrow morning, but as for now, I’m planning on giving thanks to the Great Pumpkin (a god as powerful, some say, as the Turkey gods themselves!) and putting back on most of my precious risk trades….

And mooooooooaaahh!

And yes, that includes going back to AGQ, and adding to all of my silver hordes, including EXK, PAAS, EXK and maybe even some MVG.   I will also be adding IVN as mentioned, and more GSS, and RGLD if I can get it quickly enough.

Watch yourselves this week, folks, and watch that vid to get a taste of where we really are these days.   My best to you all, especially my friends in California.

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Not my Yanks, that’s for sure
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Drawdown days are a bitch, I don’t care how well hedged you are. Some of my positions took 7 and even 8% haircuts today, but mostly that was the small ones. The bigger ones were hedged, so the bleeding was not entirely egregious. I was almost entirely out of my AGQ with only 400 shares left, so that was not a horrible caining I took even in that double slammer today, given I formerly owned 3k shares.

Word to the wise, the $HUI index is oversold already on the deep dive it did today, so I would not dwell long in the land of shorting this gold bull.  You are far more likely to receive  profitable thrills by waving your junk at a basket filled with hungry ferrets.

Of all the single precious issues out there, I like IVN and GSS to rebound first.  Don’t ask me why, just attend to my Spider Senses.   I also like almost precious REE, if it ever comes back down to earth again.  

In the non-metals world, I still love the Trannies and their strength here, relative to the scaredy cat sell off.   I especially love UPS, and you should look to add to this core holding if it can dip just a little below to it’s 50-day EMA at $66.60 or so:

RGLD is another core hold  you should be looking to glom here.   I will be adding to it, to ANV and to SLW very shortly. 

Watch the dollah!   More tomorrah!

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

A Fistful of Awesome!

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Yep, I went and did it again today.   I didn’t like the pin action in the price of gold, not to mention the dollar, and so hedged most of my major positions, including SLW, ANV, EGO and RGLD, with short calls, just slightly in the money, one month out (Novembers). 

I also trimmed my AGQ once again, selling another 400 shares at $104+.  I now have only a measly 400 shares left from my original 3,000.   We are retardedly over the 200 day moving average in silver, which just refuses to stand down, but AGQ will be a hard break when it does finally succumb to gravity, I’d contend.  

The good I see ahead is in the precious metals, big surprise, no?   That’s why I’m only shorting calls, rather than selling big chunks, though I did sell 30% of EXK yesterday, instead of selling the calls.   At prices below $5, however, and really even below $10, I see there being little difference in the price of a call, and the price of a stock, so I just sell the underlying to a point where I’m comfortable holding through the storm, and then I just hang on.

The bad I saw today, was in the bank stocks.  I thought at first that this mortgage gig was a smokescreen, readied by The Powers That Are  to scare some valuations down for coming bank M&A’s.   That thesis may still be correuct, but I was given pause by the action of the bank index ($BKX) today.   Observe:

 After all this hooplah since early September, you’d think the financials would have something better to show us than the above, no?   And yet, it’s looking bad for now.   I shall revisit my “possible takeover” thesis later in the year, as I still believe there’s a strong percentage still in betting on a flurry of acquisitions coming off at the end of this year.

In the meantime, I dumped the last of my BBT, FITB and even JPM.   I may buy back one of those after this storm has passed here, but for now, cash is better than banks.

The ugly is none other than the mighty U.S. dollar, which seemed to get it’s bounce today, off the $76.40 low area and is now almost 30 cent higher at $76.70.   

This bounce should give you an opportunity to consolidate some positions, and perhaps enter others.  I have my eye on more GSS, which is one of the few gold and silver plays that is not yet overbought.  But be ready to pounce with all alacrity on the whole universe, as this pullback may be short lived.

Or, not lived at all. 

My best to you.

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[youtube:http://www.youtube.com/watch?v=vNc5o9TU0t0&feature=related 450 300]

Jimmy Page, eat your heart out!
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You may be familiar with my call that gold and silver are overbought and should be pulling back here. Well, I still stand by that call, and as proof, today I sold approximately 25 to 40% of my EXK, BAA, AGQ, CDE, respectively .

Note I touched not any of my ANV or SLW, or IAG or RGLD, EGO or PAAS or any of my “core group.”    The reason is the Stairway to Heaven I’ve seen appearing in the charts, particularly the silver commodity’s chart.  First the weekly:

Yes, that’s our eighth week of “steady Eddy” up move we’re witnessing there.   And yet, look at how boringly stair step it seems… almost as if it is some kind of controlled move.  

It looks almost as boring — and maybe alarming — on the daily charts.   Behold:

Not a whole heckuva a lot of pullback in that stairway, eh?  That’s what’s kind of freaking me out from two angles.  First, this is not a “parabolic move” but rather a slow stair-step.  It’s highly unusual for such a volatile metal.  And before you start getting crazy about silver’s tiny market (true), the recent gold commodity charts look exactly like this as well.

It’s almost like someone gave a signal in August that it was time to swap shit dollars — ever so quietly and surreptitiously, like a cafeteria thief replacing roast turkey slices with wedges of liverwurst on all the whole grain wheat sandwich bread — for beautiful ingots of silver and gold.

This action gives me pause, even though I took some mighty profits today in the more volatile PM’s  (I also sold half my shitty BBT position, and trimmed or got rid of some outliers like JAH, KFN and a little VECO). 

This could be traders slowly covering short positions, I guess, in which case, we should ready for a strong pullback, as I’ve noted.   However, this could also be the precursor, the yeast in the bread dough, so to speak, of the parabolic move that I do expect later on this year or in the Spring. 

So we will wait and see, with bated breath, whether Christmas comes early this year… or right… on…. time!

Best to you all.

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I Know…. Nosssink! 

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Regrettably, it’s come to my recent attention that my site has become infiltrated by black bag conspiracy nuts of the Alex Jones variety.  I would ask without undue rancor that knot-heads believing in the alleged 911 “Inside Job,”  the Barack Obama Birth Certificate Kerfuffle or the Bilderbergian/Illuminati Central Axis Hypothesis (whatever that means) to kindly pole-stave off to a nearby conspiracy swamp of their choosing.

You see, all political movements — left and right — have their nutty fringe, and I’d rather not indulge those fringes right now given the seriousness of our national economic and social plight.

 So please, continue thinking that you’ve got that Jewish Lobby Puppet Master thing all figured out, and do keep proferring your legal brief claiming Barack Obama is just George Bush in more fashionably cut business attire.   That’s all fine for the Cheetohs and Miller Lite– Lone Rifleman meetings you’ve been conducting in Mom’s basement apartment, but this site is not for such erudition.

And don’t get me wrong,  it’s not just about your poor spelling and ham-handed grasp of the Queen’s grammar that’s putting me off.  Generally, that’s an amusing byproduct, in truth.

No, the ban is really about getting serious.   We’ve got a little over a month to go to make sure the bums on both sides of the aisle get the message that we are too well informed an electorate to allow another ten year Great Depression to come about under our watch.    It’s time to make sure that we have representatives educated in economics and U.S. Civics as a baseline. 

 That means no more “government-first”  initiatives, and the only time the word “investment” should come out of a poltician’s mouth is when he or she is referring to the myriad free choices for risk capital available to the private sector.   If these rubes can’t understand “First, do no harm,” then they must at least understand “Stand down, and let the people govern themselves.”

You see, it’s an ironic verity that the PPP’s mentioned in today’s title are actually  giving the “government-firsters” ample cover by repeating their paraonoic’s claims.   In fact, it seems PPP’s can’t realize that the people who would imprison them are not wearing the jackboots of their dark dreams, but instead carrying the clip-boards and white coats of the empathetic and concerned bureaucrat. 

It’s this attitude of creeping  incrementalism that must end.   Only by remaining wholly rational in its face can we hope to return to the principles — by no means perfect, but always powerful and disposed towards freedom — that brought this country to its acme.

Instead of cursing the darkness,  light a blowtorch, and think about which candidates are seeking to keep your markets and by proxy, your civilization, free.  Then go and give them every hand you can spare.

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Looks like the dollar may have temporarily bottomed late Friday afternoon, as it’s rebounded about a quarter over the low $78 it posted then.  Tonight (midnight Monday morning) has dollar trading at $78.24 and gold and silver about flat.  I continue to hope for a bit of a pullback here, but I’m not counting any chickens and would advise caution in the coming days.   October is seasonally weak for gold, so you might be on the lookout for a nice bit of weakness with which you might ride Santa’s sleigh into the Yule holidays.

Still hedged on SLW and ANV, everything else is foot loose and fancy free.    My best to you all.

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[youtube:http://www.youtube.com/watch?v=NrG4g6yNLJU&feature=related 450 300]

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“Catch the wave and you’re sittin’ on top of the world…”

— Emperor Leto II,  Atreides

Yes, Pop was quite a surfer wasn’t he?   No matter, today’s walk back in nostalgia-land is brought to you by the good dwarves of Moria who remind you “There’s no better time than late August to stuff your goody bag full of shiny robot parts, preferably made out of pure gold and silver.”

As my dear friend and father of the Mentat, Johnz Hopkinz, M. Le Docteur Le Fly likes to say, “To every time there is a season, etcetera, etcetera, Peter Cetera.”

And this hear is the season, young plebs, to stock up on your favourite gold and silver plays.   Today, I banqued mass coinage on AGQ.   I plan to take that trip to at least $70, and moooah.

But the real play here is in the Jacksons of choice — the silver goddess, SLW, its slower little sister, PAAS, and the robust brotherhood of the three middie golds — ANV, EGO and IAG.

If you are of sound mind and body, you might want to spartaculate on even smaller stuff like GSS and BAA and EXK and RBY.   These are all considerations for the coming weeks and months.   Personally I try to own “one of everything” at least.

You never know when you will see extraordinary action out of such crazy outliers like VGZ.   This is why I try to keep an inventory.  If you haven’t the patience of the pocketbook, GDX for the bigs will do, and GDXJ for the smaller names.

Even the execrable TBT seemed to turn today.   I did not add, but then, I’ve got plenty, and I’m happy to support your bid by never selling.  Your welcome.

Be on the alert for my top calls tomorrow and going forward.   The Lord God Emperor has decreed a moratorium on bullsheet currency.   Only true money shall prevail from this point on.

Best to you all.

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