Remember Children, Listen to Jake and NEVER Suck Your Thumbs!
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As I suspected (though I was never bog-standard certain), gold and silver broke their fevers today on a brief pop on the dollar. Listen, they’ve needed a rest for some time now, so let’s not get overexcited. If you have been following the blog, you’ve got a tonne of cash and you are probably riding some hedged covered calls as well.

If not, let that be a lesson to ye. Bad news is, I don’t think we’re done. Good news? We’re still in a bull here and the only thing that you’re giving up here by holding and waiting is a little opportunity cost.

And who knows, we could reverse and take off here tonight (I doubt it), and you could be ahead of the game. In the meantime, I stand and wait, and look for opportunities in some of these ridiculous rare earth metals. They too could use a rest, but perhaps not as much as our PM friends.

God bless, and stay away from those thumbs tonight…

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I have finally finished my 2011 Predictions.  That exercise, combined with the Worst Giant Loss in Two Centuries has sapped my creative energies and limited my blogging potential.

Let’s leave it tonight with my assurance that I will be hedging many of my positions again this week.  The dollar is struggling, but so too are gold and silver, which tell me that we are at a  short term peaking period.   I don’t think we get to the end of the year unscathed.

Prepare ye, and good night.

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[youtube:http://www.youtube.com/watch?v=QESfEd180rQ 450 300]

A Metaphor, of Sorts…

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Let that header sink in for a minute.   Then read this piece from the Indians.   They’re buying gold too.

This week can bring us a near term peak, and I don’t want you to panic in either direction.  I don’t want you to go insane buying gold and silver you don’t already have next week, as I believe we are perilously close to a dollar bottom.

This evening, we are also very close to $30 an ounce on silver, and we just broke $1,400 an ounce on gold.   These are significant levels that should not be tossed aside on a near term basis.   I think we will burst past these levels, but only temporarily, and then we will retrench.

But don’t get me wrong on the ultimate course here.   The Chinese are buying gold.   And they will buy silver.  And they will buy platinum, too.  And in the process of this accumulation, I posit they will make BIDU look like some bland utility stock before this is all over.

However, I don’t want you all getting off on the wrong foot–  especially since Le Magistrate has given you all the green light on silver surger EXK.   Now is the time to be wary as we are reaching overbought levels on multiple fronts.   There will be a time to gorge oneself on silver miners, but now is the time to sip… sip… sip. 

Like a butterfly at a nectar font, you must sip.    And keep in mind the auto accidents, eh?

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Oh crap, that’s not water, is it?

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Time to throw some water on the charade, ladies and gents.  Time to get back to some sensible economic thinking and, more important, practice.

Are you familiar with the 1099 fiasco attached to the recent Health Care Legislation?  Rather than wax bombastic on the errancy of the bill, it’s probably better I just lay it out here:

Section 9006 of the health care bill — just a few lines buried in the 2,409-page document — mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.

The stealth change radically alters the nature of 1099s and means businesses will have to issue millions of new tax documents each year.

This is just one provision of the 2,500 page healthcare law that was snuck in by conniving tax eating Dems looking to play hardball with the millions of American businesses.   That the 1099 provision would be an inefficient saddling of our business community with tonnes of useless paperwork is not even the most egregious quality of this directive…

No, the worst of it is that it reflects a fundamental distrust of the American business community.  A distrust so inbred and incapable of “change” that it results in laws that will not only throw sand in the cogs of our great commercial structure,  but will also create larger barriers to entry for the small business entrepreneurs that have ever been the font of innovation and new employment in our economy.

These are the kommisars, my friends.  They have come to take control, via oversight of your healthcare, and now of your commerce.   Tomorrow I may speak about the bill they are currently bruiting about that calls for a 1% transaction fee on all financial transactions, even simple banking measures.  

No worries, however, that 2% roundtrip tax on the deposit and withdrawl of your weekly paycheck is merely in keeping with “fiscal responsibility” and “deficit reduction.”   Because, as we all know folks, that’s the Democrats’ main priority, right?

Don’t tell me there’s no difference, folks.  

MORE ELECTION COVERAGE TOMORROW AND TUESDAY… stay tuned! 

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Gold’s holding up.  I will look to lighten on some of that massive ANV call position, probably tomorrow.   I will annouce any sales in The PPT and then in this blog.    Best to you all.

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Oy, that’s hot!
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Yes, Yes, BAC is rallying, but I’m not trusting this.

Rather, I think the FAZtards are about to have their sup o’ gluttony, here, as the weeklies try to reclaim the 13 and 34 week EMA’s they’ve already pierced.

I’ve found this is a fruitful place from which to grab some SKIFFLES, or in these more modern day, FAZ-mobile vouchers for a ride home.

I expect we’ll get turned at some point in the range between the $46.75 and $47.50 mark. That’s when the Citi Parti will experience the first pang of hangover, and then, le deluge.

And gold is overbought even as the dollar surges back, same with silver.   I will stay with my hedges there, and perhaps add a GDX hedge as well tomorrow.

It can’t be sunny every day.   Keep your chevrons up.

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

(The 1970’s are back in California, at least)

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It ain’t easy keeping up with my family for a long weekend mini-vacation let me tell you.   It seems we did it all this time around– the full blown resort/ winery grand loop/ top-eating halls/ Napa-Sonoma scenario, and even added in the occasional valley balloon flight and a “little” family party at a relative’s Fairfax home in the hills.   I think we also greatly depleted the stock of the district, so it’s a good thing that harvest is a little late this year.

Because let me tell you — they’re going to need more grape jooce (sic) when we finally vacate the air space.

Going into this week I am going to exercise some caution.  I still have a little bit of my ANV and SLW hedges left and I may add to them perhaps get some GDX and even GDXJ covered calls.  Both gold and silver are magnificently stretched here and I’m looking for a respite at least.    I woulodn’t be surprised if that respite went hand in hand with a similar pullback on the SPX.

To that end, I may trim my sails on some of my stock positions also, including TCK, TC and ANDE — the non-precious Jacksonians.  I will keep all of my MON as that seems to have a counter-cyclical trend to its trading recently.

Besides, it’s a long term hold play, and I’d be comfortable adding lower, so why sell some now?

I am bone weary and getting up early tomorrow to take on the San Fran Airport.   I will try to check in via Crackberry, but until then bon chance!

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