What the Frig?
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I have to thank my Massachoo friend, E8, a.k.a. “Teahouse on the Tracks” for giving me this easy throwaway header.

But let that not distract from the niceness of this junior miner in the full Lawn Guylandesque sense of the term. Fronteer Development Group Inc. (USA) [[FRG]] is no doubt “BTFO” as we say around here, and the daily tells us so:

With that kind of lift off on volume like we had Friday, you can expect further action as follow through, but if I’m youse (sic), I’m gonna wait and let it flag some. Why? Well, the weekly should be an indication:

As you can see, there’s a secondary consolidation zone that we’ve just broken into. I think that means we’ll see a little bit more consoliadation here, and maybe even a pullback to the original breakout line at $4.85 or so.  

When we’ve dealt with this little dollar eruption in the next couple of days to a week, I think FRG will resume it’s heading back over the $5.60 mark, where it should have clear sailing well into the $8-9.00 range.

Keep in mind we should have some pullback on our favorite miners here, so keep your eyes open.  I will be looking to grab more Silver Wheaton Corp. (USA) [[SLW]] , [[EXK]] , Allied Nevada Gold Corp. [[ANV]] and Eldorado Gold Corporation (USA) [[EGO]] in a rigidly opportunistic fashion, like Frank Sinatra on Rookie Cocktail Waitress Night at the Sands.

[[PAL]] and [[PTM]] remain strong relative to gold and even silver.   These laggards need to catch up.

Keep in mind also that the 13-week EMA’s for Cree, Inc. [[CREE]] and Veeco Instruments Inc. [[VECO]] of which I spoke a few posts back, should be looming into view this week as well.   This is not an opportunity to ignore.

May all your bastards be glorious, and I hope to speak to you tomorrow sometime.

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Exchanging the Secret Handshake
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The guy on the right in the picture above is counting on the stupidity of his majority peasant populace to pull off one of the grandest day-time thefts in recent years — the 50% devaluation of his country’s currency by fiat Executive declaration. Like the crazed-with-power dictator in Woody Allen’s classic comedy Bananas who declared “All children… under the age of 16 years old.. are now…. 16 years old,” El Pizza Face above is “declaring” that every unit of currency (the “bolivar“) is worth one half of what it was worth yesterday… just “because.”   

What’s even funnier is he’s now saying that retailers cannot raise prices in response to this devaluation, upon pain of seizure.  How long do you think retail businesses can stay open charging 50% under cost of goods?   One wonders also how long even the economically illiterate majority of Venezuela will stand for such blatent skulduggery?   I’m guessing for about as long as the food stores hold out.

Meanwhile back here in this country, we’ve got that pesky Constitution getting in the way of any similar grand plans to immediately double the money supply.   But our leaders want to get in on the free-gov’t-money-for-votes-racket too,  so they’ve got to come up with more creative methodologies.  

Luckily, they’ve got a compliant Federal Reserve whose number one priority is saving themselves and the badly damaged fractional reserve banking system.   That means the Fed’s alleged “guiding missions” of maintaining low inflation and a high rate of employment take a back seat to the Darwinian imperative — “survival at all costs.”   This is good news for the dear leaders in Congress and the White House.

What’s more, our leaders have got the rest of the world using our currency as reserves.   That means, for this brief shining moment in history, our leaders can do what Hugo Chavez only wishes he could do — print fresh new bails of cash via deficit financing with little to no apparent consequence to our national economic status.

For now. 

But Mother Economics is even more of a caustic wit than Mother Nature, and much like these soi-disant world governors who are being served flaming slices of “Humble Baked Alaska” with these record-breaking cold temperatures, so too will our Congressional and Fed Capos reap multiple facial hatchetings to their long beards for this extended abuse of global trust.   The dollar may not halve in value over night like the Meatball’s Bolivar did, but it’s breaking down all the same.  

Today’s action has us back in the congestion zone again, which is a sticky swamp as of late.   This means good news for commodities and other real things as the clarion bell of inflation is being rung once again.   Answering the call is your one and only “Stock of the Year” pick Silver Wheaton Corp. (USA) [[SLW]] , now clearly BTFO’ing to new 52-week highs.   I like it on a pullback, as it has a reputation for filling gaps.

While [[GLD]] is moving up in a stately patrician manner, [[SLV]] and its turbocharged brother  [[AGQ]] are playing catch-up, and will likely out-perform in the near term.   Same holds true for the other precious non-gold varietals like [[PTM]] and the two platinum-palladium miners [[PAL]] (which is a rocket ship headed to the sun, Icharus-style) and Stillwater Mining Company [[SWC]] .

Don’t forget all the junior burritos I’ve given you in the past.   Allied Nevada Gold Corp. [[ANV]] , Eldorado Gold Corporation (USA) [[EGO]] and IAMGOLD Corporation (USA) [[IAG]] head the list, but the “Nth Factor” — NovaGold Resources Inc. (USA) [[NG]] , New Gold Inc. (USA) [[NGD]] and Northgate Minerals Corporation (USA) [[NXG]] are roaring too, along with Ivanhoe Mines Ltd. (USA) [[IVN]] , Rubicon Minerals Corp. (USA) [[RBY]] , Exeter Resource Corp. [[XRA]] and many others.   

If I had to pick another “launch to the sun” like Silver Wheaton Corp. (USA) [[SLW]] I think it would probably be [[EXK]] .   It reminds me of SLW in the old days.     Hold on to your capital people, they will try to appropriate it in multiple fashions going forward.  

Best to you all.

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Swisher Sweets are Smoo-o-o-o-ooth.
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I’d walk a mile… for a Camel… (and to buy that last piece of that January [[SPY]] put position– 50 more @ $2.89-2.92.)

Bryl-Creem, a little dab’ll do ya…. (just like a concentrated position in sold calls and targetted puts will “smooth out” the rough spots in a downdraft).

Winston Tastes Good, like a cigarette should… (so do 20 more [[GDX]] March 50 calls sold at $8.00 a pop.)

Rice-a-Roni, the San Francisco Treat…  (not unlike [[PTM]] , which has stayed strong — and unsold– while it’s brother PM’s have sweated.  That may change tomorrow, as I may take a third off, despite my lack of a full position as of yet.)

N-E-S-T-L-E-S, Nestles make the very best… (chocolate, maybe but not market hedges.  I expect we’ll have a bit of a global pullback, so even the traditonal consumer product hedges may be of little use.   Note that Brazil took a dive today from [[EWZ]] ‘s tops over $80.   A little [[EEV]] may be a choice smoothner her for a week or so.)

The best part of waking up, is Folger’s in your cup… (but maybe not Green Mountain Coffee Roasters Inc. [[GMCR]] if it breaks through this near term support at $60, right here.  Next very strong support is $55, which I would consider “back up the truck territory,” on a bounce.)

Best of all, it’s a Cadillac… (but not if you’re a GM shareholder, Ford Motor Company [[F]] is actually looking good here on a pullback to $8.50.  I’m sure Mr. Cane Thaler is well pleased)….

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Feel free to add some favourite (sic) advertising slogan-themed picks of your own.   I’m off to dinner at a fantastic local restaurant.  Ciao.

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Daaaaaah-DOPE-di-dope-di-dope-dope-dope-dope-daaaaahhhhh…..
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Dateline Palo Alto — Sierra Club President Richard Cecil-Head, IV speaking from his Half Moon Bay headquarter today stated that “No efforts will be spared,” in seeking to preserve the shrinking populace of gold bears in the foothills of Palo Alto.

“Few people realize the boon to society these particular bears can provide,” stated Mr. Head.  

 “Leaving aside their propensity to keep their backyard pools clean of scree and pine dust– sometimes scrubbing them as many as three times a day– these bears also provide significant aesthetic value by selling into every downspike and even potential downspike in this secular bull market over the last nine years.”

“Do you realize how rare a commodity such perfect obtuseness is nature?  Darwin be damned – these knuckleheads must be preserved for the good of us all!”

Head is particularly concerned about the dead and dying bears being reported all up and down the California coast, especially those found with [[GDX]] -brand tire tracks across their furry backs.

“Please,”  Mr. Head told this reporter “Let’s get this story out there.   We cannot afford to lose this valuable animal to the ravages of rational market.”

(Rumours (sic) of Mr. Head’s large investments in physical gold were unconfirmed as of this column’s deadline.)

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Today I was busy, friends.

I sold a lot of phat calls that I owned since the last two dips today, mostly because they were getting long in the tooth (ie, “December strikes”).   I got rid of December GDX $39’s and $40’s at embarassing profits, all thanks and praise to the GDX shorts, once again.   I did similarly with December strike Silver Wheaton Corp. (USA) [[SLW]] calls that I held at $7.50 and $9.00 strikes.  

The profits were unseemly.  I shall not speak of them again, for fear of “colour” (sic).

I also sold 20 Allied Nevada Gold Corp. [[ANV]] December $7.50 calls for a nice mark up, and I hold another 20 I will likely boost tomorrow.   I still hold another 40 SLW and another 20 GDX December 40’s (listen, I had a ton, okay?) which I will likely get rid of for the one reason that time grows short on them.

The next dip I will be starting the process all over again, likely with the same robust names, as they have been “berry berry good to me,” Garret Morris-style.

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Please tell me you got some Royal Gold, Inc. [[RGLD]] over the last weeks and/or months?    It broke the fruits out today, and it’s in “I dunno WTF” territory now.

I would love for RGLD to return to the breakout area of $49.72 or so… I just don’t know that we’ll see it.    I will not sell this stock under $200,  and  I firmly believe it will be the Potash Corp./Saskatchewan (USA) [[POT]] and The Mosaic Company [[MOS]] of the “next” commodity bubble, which will be precious metal driven.

Don’t forget about [[PTM]] in all the gold and silver shuffle, either.  

  Sell some Silver Standard Resources Inc. (USA) [[SSRI]] if you have gains.  It’s a lagger, and I’m cutting back on it.   I think I shall replace it with Allied Nevada Gold Corp. [[ANV]] , on the Jacksonian Roster, fwiw.

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Last, there’s been a lot of back and forth this last weekend over the benificence of socialized medicine, care of Nan Pelosi, Scary Harry Reid and President Obama.   Putting all politics aside, know this — you cannot get something for nothing, and economics law will not self-suspend, even in the name of alleged altruism.

As I explained to a fellow blogger over the weekend, increased demand drives one of two things — higher prices or lack of supply, depending on whether prices are allowed to increase in a free market environment.

Increased participation in a market at a “zero price” (ie, gov’t paid health-care) will put a strain on our current supply of very expensive health care, even positing there is no exit by our  current providers.    If prices are not allowed to rise — or heaven forfend  they are cut — there will be massive “throwing in of the towel” by providers across the board.

Look for a  bifurcated system to arise, in that event, where the best providers that remain will “opt out” of any government — and likely many “governmentalized private” — insurance programs to serve those who can afford “club-based” gold plated care.  

Does anyone think that anybody but the Ted Kennedys and other such plutocrats who can join “the Club” will be happy with what remains for the masses?  

Dr. Fly cannot attend to everyone, you know.

Think hard, America.

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Zut, Alors!

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Some of you may wish to take this opportunity to weep like a disgruntled Maginot Line engineer a week after the Blitz (see above).  

That’s right it’s crying time again.   That time when the gold and silver bulls that as of late have been so docile and yielding of fresh milk (as far as you know) have now grown into raging Tauruses (Taurii?), trampling your bloated carcass and rifling your pockets for loose Good & Plenties.

But let’s check our calendars shall we?   Has Sinterklaas arrived already, muling his burlap bag of kittens and freshly polished wooden clogs?  

Has Mother already placed a large roasted poultry on the dusty “for guests only” dining room table and surrounded it with gut-stuffing, cream-embossed ancillary vegetation  seen — thankfully — only once a year?

For that matter, have even any cleverly disguised neighborhood brats beaten on your manor door, claiming King’s Right upon any nougat resident?

No?

Well, then, heck — go order a Kung Pao or something.  Take the day off.   Feed the birds.    Go have a pigeon sandwich with pigeon sauce on the side.

Or if you’re of a mind, and have recently grubbed some coin selling an egregious biotech hand grenade with your one remaining three fingered hand, see if there aren’t some glittery bargains out there you may have missed the first time around.

Caution — nothing’s really much of a bargain, valuation wise.    To buy here you’ll have to accept the thesis that we are “dollar unhinged” at this point, and that gold and silver are going quite a bit higher.   If you’ve been with me since inception, you’ve probably bought into that much. 

We’ll look at the dollar later tonight.    There will be a low and a rebound, but I don’t think it’s coming until [[UUP]] is down below $22.00.   That said, we’ll remain cautious.

There’s not a ton out there that I’m eyeing to add, but that’s only because I’m so “jug full” at this point.     I  continue to think the silvers offer the best opportunity, so I may want to look at the double POS(ilver) [[AGQ]] .

I also think [[PAAS]] is an opportunity here, thanks to yesterday’s sell-off on the merger news.  

[[CDE]] is hardly taking a breath (and I forgot to include it in yesterday’s list, my bad).  

 Silver Standard Resources Inc. (USA) [[SSRI]] has been lagging, but it’s known to catch up rather quickly. 

  Silver Wheaton Corp. (USA) [[SLW]] is of course my favourite (sic) silver,and don’t forget mighty mite [[EXK]] .

On the gold side, my current favourite — and non-Jackson — Allied Nevada Gold Corp. [[ANV]] is pulling back here.   I also like Yamana Gold Inc. (USA) [[AUY]] and [[BAA]] on this pullback.    

Of the Jackson golds, Royal Gold, Inc. [[RGLD]] is “the one” I choose above all others, thanks to its royalty leverage.   IAMGOLD Corporation (USA) [[IAG]]   and Eldorado Gold Corporation (USA) [[EGO]] have also been champions and will see the 20’s by Christmas, in my opinion.

One last thing, platinum is really picking up after lagging here, and I think  [[PTM]] is very close to “BTFO”  in the $16.50 area.   This is one to have in your portfolio as a “core holding” along with [[SLV]] and [[GLD]] , in my humblest opinion.

That’s enough for now.   Go to the boulangerie and weep over an anisette and black-black coffee.

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Apologies for this late quick note, but I just spent the good part of a seventh circle of  hellish evening with a window replacement salesman who could’ve given Shelley Levine of Glengarry Glen Ross fame a run for his money.

This poor schlub… he so wanted the sale…

But I was sniffy and aloof, understanding yet askance, nodding but nodding off.    

I sell large things for a living you see, while not entertaining you all with picks of rising value.    

So I felt bad.   A little.  But was more peeved at the Mrs. Jake for setting up such a fiasco after I had spent the whole day in meetings, the last of which was sprung on me late and took me to 7:30 in the evening.

She didn’t know, of course, and I didn’t remember our “date,” so it was a sour-faced revelation for us all when I arrived home to see Mr. Steak Knives sitting at my kitchen table, readying  to parlay.

After much education on triple pane argon and krypton gas filled what-you-may-have-its, I sent him away with no agreement, despite his imprecations of  “promotional sale” and his obsequious (and transparent) appeals to the “showcase quality” of our home (I knew better of course).

I did promise to do some due diligence however, and so I put it to the audience:   Have any of you any experience with this product?  I won’t name the brand as I don’t want to bias things… but he was selling triple pane insulated “top of the line” replacement windows that could stop Superman in his tracks due to their krypton gas quotient. 

Your recommendations or “insider knowledge” from past summer construction jobs are much appreciated.

As for tonight’s “study,” I leave you with my “big picture” thesis of the Exxon Mobil Corporation [[XOM]] symmetrical triangle forming here, which looks to be finishing by November 24th, at the latest.   I really think this chart will forecast the market… as XOM and the earl based commodities go, so goes the market — taurine or ursine.

 

God bless you and your set of promotional steak knives, one and all.

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Addendum — watch also for [[PTM]] tomorrow.  Platinum is heating up along with its more popular brothers.  Diana Shipping Inc. [[DSX]] also looks nice again.   Is it transporting silver ingots?

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