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Nothing much moved today on the PM side as the market collectively held it’s breath waiting for The Bernank’s do-nothing address. That speech, in turn, resulted in a massive shrug of the shoulders after market close today.

There’s some chop back and forth and further attempts upon my person in the form of certain “Chicken-playing” PM stocks (ahem, AAU and EXK, damn you!). These stocks attempt to force me off the road by driving straight at me at 110 mph, whilst drunk on Old Crowe whiskey.

I will not be moved by such crude tactics, and I continue to beleive there will be a bounce in the metal sectors collectively. Action in the minor metals like palladium and platinum are betraying this new direction, and even copper is showing stubborn signs of staying about $4.00.

In the meantime, dollar strength is seemingly being abetted by a weak Ozzie Dollah and Canuckistanian Looney. That too simply cannot be the basis for a dollar rip, so sorry. Not for the long term at least.

So just check yesterday’s chart for tomorrow’s action, as nothing looks very different. On another note, you may want to inspect the FAS-mobile tomorrow as well, as it looks like banks may be ready to roll once again.

Best to you all.
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It Burns! It Burns!

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Let me first apologize for my inability to post last night. It’s a long story, but let’s just say it involved egregious, home-wrecking (figuratively and literally) home repair arcana which prevented me– via “boy in the bubble” -style plastic sheathing– from reaching my home laptop without risking catastrophic ruin to both home and marriage.

Luckily, I’ve ingeniously derived a path to said electronic tools, and even  — bonus! — unto my very wine cellar.   Alas and alack, all my wine glasses are also encased, Young John Travolta-style, behind aforesaid egregious plastic bubble.  They mock me, even now, in light-hearted crystalline tones.   Resulting situation?  I may go “Mayberry Otis” on a bottle of 2005 Mondavi right here, right now.  

Tell no one.

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Where was I?  Oh yes, the banks.   Boy didn’t it seem like last week was the begining of the sequel to late 2008’s monster hit– Bear Stearns/Lehman II, Electric Bugaloo?   But let’s get serious — when was the last time quantitive easing was bad for banks?  Well, it’s certainly not bad for banks that have crapola bonds on their balance sheets when the ECB and Fed are acting like willing buyers in the market place.   Get on the QE II Cruise Liner, people.

For stabilisation (sic) purposes only, please. 

No folks, they are not going to let those banks die again.  “They” are stupid, and “they” are short sighted, but they are not going to make the same mistake twice.   Not in a … what? (Cups hand to ear)… Go ahead, say it with me… Not in a whaaat?

NOT IN A FREAKING ELECTION YEAR, Baby!

Come, come– I know you are desperate for some serious chart action.  You cry out for confirmation of my biases, and I will not disappoint.   Slake thy thirst on this weekly of the $BKX (the Philadelphia Bank Index):

Four out of five weeks down, sure, but where has our price found purchase, and even (dare I say it?) a phat DOJI?  That’s right, at the same 34-week EMA that’s served as mother’s comfort lo these last eleven months. 

And those were “recovery months,” which I don’t think will be fully completed until we test that 200 week EMA up there (in red) which, by golly, sure looks like it wants to at least decrease its slope, if not stop descending altogether.  Ain’t that a thing? 

Now lookee see, here, I’ve got another juicy and nutritious daily chart for you, and yes, it’s the $BKX again. 

No, it’s not pretty but in this case, it’s the 200–day EMA that’s serving as support as well as that significant support line (we’ve used it before) at just over $49.00.   I think the printing presses are winning this one, son, and they are not going to let those banks go down without a much more serious fight than we saw last week with the Greco-Spaniard panic attack. 

So prepare ye for more clack-clack-clacking that will lead to much ack-ack-ACKing.   

This market may very well be setting up for a great fall (perhaps, in the Fall?), but I think the powers that “try to be” will continue to stuff those banks so full of banque notes and letters of exchequer that you won’t be able to address the tellers for the interchange of proper monies. 

They fight the last war, that’s what they do well.   Look not ye, then, unto the burning FAZ -mobile!  And whilst ye may not wish to grab polar opposite FAS, I continue to think BBT and FITB are decent holds in this environment.

And lest we forget,  continue to look to the PM sector as your hedge to this egregiousity, as always.   

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