Did you take some action today? Were you nimble? Were you quick?

I’ll have you know today I, “Jack,” jumped many a candlestick, whilst running away from ex-Nazi dentists with maddeningly persistent, OSHA-oriented questions.

Did you?

I’m not going to mess around posting a bunch of charts, mostly as so many of them look the same with their one day reversal candles… but I’m going to say it here and leave it up to challenge. Today was a gift from the PM stock gods.

You see, today was the day “they” — the Operators — were going to shake the tree on all the trepeditious weak hands in the PM sector.  They were going to drive gold below $1,000 and then knock you over the head with a sockful of nickles to see how many positions you’d drop onto the ground for them to Hoover up.

And they were successful — to a point.  They were able to force gold below the $1k surface for a little more than two hours of trading this morning (NYSE hours) before, like a dirty beach ball in the Coney Island medical wash, it broke out above the waves again and headed higher. As I type (11:15 pm), POG is almost $1008 again, and POS is approaching $17. I’m betting we see more recovery tomorrow.

The same thing that happened to physical gold and silver happened across the precious metal mining sector. Very rare was the singular breakout like our previously recommended Corriente Resources Inc. [[ETQ]] , “the Latina Beauty.”

No, most of our names offered instead outstanding opportunities to buy at deep discounts today.  Just pull the chart on any Jacksonian or other oft-mentioned PM name and note the reversal dojis as they roared to recovery, some all the way to the green.

And yes I took advantage, though I announced only to The PPT today, as I mentioned I would. And no, I don’t mean to torture you like Sir Laurence Olivier with a rusty dental drill, but… well…

You see, I think we are in trading this Fall in very opportune times, and I want to make sure the people kind enough to keep this worthy site going “in custom” as it were, are rewarded with first dibs on choice observations.

So please don’t think me unkind, but rather, think of me as merely giving you yet another incentive– by way of whirring dental drill– to at least take a peek at The PPT…  for your own “toothsome good,” as it were.

Here’s an (edited) log of my announcements on The PPT‘s famed User Notes today:

10:30 & 11:15 am— Bot 15k shares [[CVM]] @ 1.90 (blended)

11:03 am— Bot 40 Silver Wheaton Corp. (USA) [[SLW]] December $9 strike calls @3.60, (SLW @ $12.12)

11:45 am — Bot 1k more [[PAAS]] @ $22.84

11:51 am — announced “POG back over $1,000 oz. again, if you blinked you missed it.”

12:02 pm — announced a potential new flag break formation on Beazer Homes USA, Inc. [[BZH]] .

1:07 pm — Bot another 2k of BZH @ $5.75 (limit order placed at 12:10 filled)

1:22 pm — Took advantage of the huge discount in IAMGOLD Corporation (USA) [[IAG]] and added another 2k @ $13.66 right as it bounced off the upward sloping trendline.

1:36 pm — pointed out the (then 12%) breakout in Corriente Resources Inc. [[ETQ]] .

In addition, after the above purchases, I also gave a “preview” on three potential plays that I think are setting up, maybe as soon as tomorrow. And remember, this is the kind of thing that is happening every day on The PPT, and not just with my picks, but with trades, observations and analyses of every serious trader involved on these pages and elsewhere.

As a result, we’ve become near-Homeric in our collective winship. Grab an oar if you like, we’re off to Troy again tomorrow.

Slange (sic).

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Makeup bonus:  Just to prove I’m not an over-secretive ogre, I’ll divulge a non-PM tasty I’ve been eyeing.  Take a look at ANADIGICS, Inc. [[ANAD]] on a pullback to $4.75-.80 here.  I think it’s going places. Best to you.

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After all, this is why we are socking away wins for a rainy day:

So yeah, the Jacksons (up a collective 36.5% since May 1st as of today’s close) may be doing egregious “loaves and fishes” type miracles with your cash pile, but let’s keep our nose to the grindstone, as you’ll need that dough when a ham on rye, hold the mustard sets you back $36.25.

Remember we are all about dollar destruction here.   Take a look at that chart and ask yourself if the Congress and the Fed are going to support that kind of spending (not to mention the huge Medicare and Soc Sec liabilities) via the good old fashioned “belt tightening” of increased taxation and spending cuts?  

As they say in Texas, “No, hail no.”

So let’s be opportunistic and remember that there will be pullbacks in these metals, but that we need to manage our positions to maximize cash flow in this critical period.   For me that means selling calls at critical junctures, and even trimming the sails to raise cash from time to time.  If I’m reading things right, however, you are in for a bumpy, but enjoyable continuing ride here.

Keep in mind Rubicon Minerals Corp. (USA) [[RBY]] has broken to new highs yet again, and Allied Nevada Gold Corp. [[ANV]] remains a favourite pick.   I may take some leverage (ie, bot calls) off the table in Silver Wheaton Corp. (USA) [[SLW]] soon, as it’s run faster than it’s brother silvers by far, with over 66.8% returns since May 1st inception, while [[PAAS]] and Silver Standard Resources Inc. (USA) [[SSRI]] are only at 43.5% and 29.2% respectively.   I think SSRI especially will gain from here. 

On the junior level [[EXK]] continues to be a junior trooper, and I continue with a leveraged position in [[CDE]] as well, because of the acute lack of overhead.  I also own Hecla Mining Company [[HL]]

On the gold side, IAMGOLD Corporation (USA) [[IAG]] remains the monster of the pack, with 85.8% returns since inception, but I’d look for a pullback here before jumping in.   Eldorado Gold Corporation (USA) [[EGO]] and Allied Nevada Gold Corp. [[ANV]] still look like they can pack punch here, however, so keep an eye out on them and yesterday’s mention Gold Fields Limited (ADR) [[GFI]] .  

 Last, non-PM Monsanto Company [[MON]] grabbed back some ground today but continues to be undervalue in the Jacksonian sphere.   Still a “grandkids pick.”   The Andersons, Inc. [[ANDE]] –up over 106.5%  since Jackson inception — is still our leader, and looking for $39 as it’s next “achievment.”

I’ll have more tomorrow, but let’s shut it down with a veritable classic from my youth.   Share it with a favored son of daughter, and it’s likely they’ll never forget it:

  [youtube:http://www.youtube.com/watch?v=P7tQVEEPWv0 450 300]

Slange.

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Listen, I just won’t do it.

I will not.

To boast and brag about the egregious Epic of Gilgamesh-like  wins over the last two days would be… well, it would be unseemly.

Instead, I’ll show why I think this is “something different”  than the last run up we had in late May/early June.   Take a look at this week’s “star” Jackson IAMGOLD Corporation (USA) [[IAG]] :

Yeah, that’s a five-year chart.   And charts looking like this are all over the PM map this week, like drunks at a Calistoga wine tasting festival.  Breakouts on considerable volume.  And yes, there will be pull-backs.  

What’s more, there’ll be more to come.  Remember my $HUI chart from just this past Sunday’s post?   Well, circumstances have certainly accelerated, but it also looks like there’s a lot of room to run just to get back to the old highs…. viz:Keep an eye on the Jacksons as we head into the meat of this breakout.   Besides IAG, there’s also Eldorado Gold Corporation (USA) [[EGO]] , [[PAAS]]  , Silver Standard Resources Inc. (USA) [[SSRI]]  and my favourite (sic) long term gold play Royal Gold, Inc. [[RGLD]] .   Also, as I expected, Thompson Creek Metals Company, Inc. [[TC]] had a nice rebound-breakout day today as well.

Non-Jacksons Allied Nevada Gold Corp. [[ANV]] and [[EXK]] are long term favourites…. be well.

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I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

Thomas Jefferson, – “O.J.” — the Original Jackson (Attributed)
3rd president of US (1743 – 1826)

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With this quote in mind, I want to again call to your attention that we are approaching the “August to Christmas” gold run, which generally includes a concurrent run in the gold and silver miners, as represented by the [[HUI]] index.   Almost every year in the oughts since 2000 has reflected this run, save of course last year, when we experienced a 28% loss due to a mass liquidation of all assets.

As reflected in the 2007 portion of the following chart, you can see the $HUI broke over 67% in the August to December period.   Note that a return to the old highs ($525) would only require a 44% run from these levels.

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I believe we should see a relatively rapid progression when this thing gets moving — from $375 to the June highs (about $405) and then very possibly back to our pre-crash ’08 old highs in the $525 area.  That kind of progression in the $HUI should mean good things for all of our precious Jacksons, including Eldorado Gold Corporation (USA) [[EGO]] ,IAMGOLD Corporation (USA) [[IAG]] , our leveraged royalty play in Royal Gold, Inc. [[RGLD]] and our gold ETF [[GDX]] whose $34 strike options I purchased last week for September expiry.

A strong $HUI will mean even better things for the silver Jacksons, as the price of gold is still well over the historic 40x silver “norm” at nearly 65x today.   Silver Wheaton Corp. (USA) [[SLW]] is my number one pick in this space, but  [[PAAS]] and even relative laggard Silver Standard Resources Inc. (USA) [[SSRI]] should be strong in this coming period.

As for non-Jacksons, I still like Allied Nevada Gold Corp. [[ANV]] despite the recent dilution, and Rubicon Minerals Corp. (USA) [[RBY]] , Golden Star Resources Ltd. (USA) [[GSS]] and [[BAA]] all look good from the junior gold side, and of course [[EXK]]   and [[CDE]] on the silver side.   I will also throw Hecla Mining Company [[HL]] out as a possibility because it tends to jump in “hot” precious markets.   Be warned, however, this last is a “trade only” position, and not one to keep even one day past its expiration date. 

If you want to buy and hold, stick with the Jacksons and a well diversified pool of juniors… one or two of those will be “lotto tickets” and the rest will be largely crap, but you will be happy for the lotto wins nonetheless. 

No excuses, ladies and gents.  It’s “sarious” (sic) time.  See you at the finish line.
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I know I haven’t given you a Jacksonian update in a while, so here’s last week’s results.  Note the bludgeoning in Thompson Creek Metals Company, Inc. [[TC]] due to the UBS (curse them) “bought deal” which means a “sold short” deal to those who are already holders.  No matter, once this overhead is sopped up, TC will move again, as will Teck Cominco Limited (USA) [[TCK]] .  Get these while they are cheap.

Name/			%		Portfolio	Portfolio
Ticker	21-Aug	28-Aug	Change		Value	Impact		Comments
ANDE	$        28.20	$      32.92	16.74%		$             9,940	1.00%		Big volume leap Friday. $33 is break.
EGO	11.02	10.56	-4.17%		$             9,895	-0.25%		Riding 20-day (10.49) on coil now.
GDX	39.30	40.18	2.24%		$           12,161	0.16%		Moving out of consolidation zone (>$40)
GLD	93.65	93.87	0.23%		$           10,796	0.02%		Coming out of coil as well, needs $95.50
IAG	11.93	12.02	0.75%		$           14,821	0.07%		Looks to test new highs (12.36+) this wk.
MON	83.78	83.00	-0.93%		$           13,168	-0.07%		Stuck between 20 and 200 day EMA’s.
PAAS	19.52	19.99	2.41%		$           12,006	0.17%		Breaking out of EMA coils (20/50/200)
RGLD	39.50	39.95	1.14%		$           11,039	0.08%		Closed above 200 day but lagging peers.
SLV	13.92	14.50	4.17%		$           11,779	0.29%		Nice leap on volume Friday, targ: $16.04
SLW	9.37	10.45	11.53%		$           10,150	0.70%		Nice move Friday, over $11 = free air.
SSRI	18.24	18.28	0.22%		$           10,634	0.01%		Still lagging all MA’s, and peers.
TBT	49.55	46.74	-5.67%		$             9,311	-0.32%		Broke below 38.2% fib @ 47.20, 44.90 target
TC	14.29	11.98	-16.17%		$             9,861	-0.96%		Massive dilution effect from secondary
TCK	26.73	25.20	-5.72%		$           24,315	-0.83%		RSI turning back up again, could be time.
Cash (000)	$        8.63	$    12.64	0.01%		$         12,644	0.00%		Added another $4k+ with final NRP sale
AVG (weekly)			0.40%		$       182,520	0.07%
AVG (monthly)			9.91%		Actual cash
AVG (inception)			25.14%		on cash return	21.68%

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It’s 1:50 PM and I see [[UUP]] banging up against the downtrend line and fully expect it to turnover here right now.

Target $23.05. Good time to grab some of your favorite options play for quick snicker-snack of your Vorpel blade.

“Abort! Abort! Abort!” signal is upon a break of our aformentioned $23.28 to the northside.

I am looking at [[PAAS]] , Silver Standard Resources Inc. (USA) [[SSRI]] , Silver Wheaton Corp. (USA) [[SLW]] , and [[GDX]] .

Caution: Follow me at your own risk, and make sure you Wait for the rollover!

Best to you, Jake out.

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UPDATE:  Bot 50 Sept $34 calls on GDX @ $5.60 .   Caveat: If you follow me into GDX you may contract “Midas Touch Syndrome” and end up turning your favourite (sic) poocho into a very valuable knick knack, and you may lose money too.

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Last I saw him he was running around, all ass & tail, gunning down shots of Don Julio and screaming “New Lows in July, damnit!!”  

But here it is August, and the only lows I’m seeing are the catatonic stair steps of [[UUP]] as it heads to its crypt in the basement.  Remember my post about the “noise zone” from the other day?  Here’s our result:

Looks like $23 is the make or break area, here.   If we get there, I think we get at least a bounce.   Would not shock me to see further deterioration after that.

Again, that means good things for our PM and Jacksonian buddies, and they all rallied today, with the overall portfolio up 3.23% today and now breaking to new highs since our May 1st inception, with a return to date of 26.62%.   My only regret is that I didn’t put more cash to work last week when I upped my Monsanto Company [[MON]] and Thompson Creek Metals Company, Inc. [[TC]] holdings back to their former strengths.  

Another interesting note — while Mr. Anderson — The Andersons, Inc. [[ANDE]] remains my top performer with a 92.81% return since May 1st launch, my second chasing close on his heels is also my newest pick Teck Cominco Limited (USA) [[TCK]] which is up an astonishing 88.76% since first purchase back on June 16th at $15.04.    Most of the PM’s are in the 20’s percentile range (still off their June highs, mind you) with IAMGOLD Corporation (USA) [[IAG]] leading that pack, up 32.06%.

The one Jacksonian clunker (for which I receive a large “cash” dividend) is Natural Resource Partners LP [[NRP]] , at a negative (4.11%).   I will consider NRP’s inclusion in the ongoing list, unless it’s laggard status improves.

As for the best of the Jackson’s currently, the silvers seem to be standing out nicely, with my favourite (sic) Silver Wheaton Corp. (USA) [[SLW]] breaking out past it’s 61.8% fib, and looking to continue here to resistance in the near term at $11.00 or so.   I of course will hold onto it until the bonds of time are loosed.   Silver Standard Resources Inc. (USA) [[SSRI]] also looks extremely strong here, with another breakaway gap, up over 6% today like SLW.  [[PAAS]] was only up over 5% today, but is exhibiting the same tendencies.  

Last, non-Jackson junior silver [[EXK]] was also very strong today, with a nice volume spike and also gapping up over resistance. levels.   It seems to be heading to it’s recent highs ($2.40) , and I’d say that’s going to come quickly.   My analysis is that the Central banks were so busy suppressing gold today that they forgot about her little brother, and the beach ball popped above the water for all to see….

Onto the non-Jackson golds–  I still like Allied Nevada Gold Corp. [[ANV]] , which is becoming almost Jacksonian in its stately and dignified rise here.   Take a look at it’s weekly chart when you get a chance — it’s a thing of beauty.   As mentioned in my comments section, [[BAA]] broke da Flummox out today over the $2.14 barrier I had mentioned in my chart the other day, and Ivanhoe Mines Ltd. (USA) [[IVN]] is looking to move higher.  I also still like Golden Star Resources Ltd. (USA) [[GSS]],  even though it’s rise was crippled by the Curse of DMG early this morning.  

On the non PM front, I still very much like Mirant Corporation [[MIR]] — which also has A and B warrants, if you are interested in that type of thing.   I also applaud any of you that took my [[CNXT]] breakout signal chart from the other day to heart.  I think they’ll be more there, btw.  

 That should be enough for you to digest for now, but check in my comments section tomorrow for trading updates.   Best to you all.

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