[youtube:http://www.youtube.com/watch?v=REYOJDANQ0k 450 300]
(Remember when Kanye was witty?)
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We’ve finally done it… we’ve broken into “free air” on the Miner’s Chart — the venerable $HUI Gold Bugs Index. Come see it for yourself:
I did a lot of things today in celebration of our free air moment. First, I covered quite a few of my hedges in ANV and SLW and GDX, some at a loss some at break even. The ANV was particularly egregious, but we’ll try not to dwell on that. I still have about a 20% hedge on SLW and about 30% of ANV still hedged. You’ll note the overbought stochastics and relative strength indicators on the above chart, I’m sure. That’s my reason for retaining a little hedge.
But let’s not kid ourselves, the dollar is busted, and headed all the way to Target #4 without even a passing “hey howaya?” to Target #3. Cheggitout:
Sure, we may get a little bounce at $77, but look at what happened after that last bounce. No, I think the dollar is dead as Jacob Marley on burnt toast.
So please, get out of any silly short positions you may be contemplating “holding out” for. There’s far more easy hunting out there than going after an Alaskan grizzly with a plastic butter knife.
In addition to releasing most of my hedges today, I also doubled down on an initial IAG long call position (DEC $17.50’s) at $1.60 a piece today. My original purchase of 80 was at 90 cents each. I expect IAG to be over $20 before Santa arrives. I also added a touch more EXK, which was gluttonous of me. I now own more of that than I even do SLW, though the share price is lower.
Of course, I think EXK will be the next SLW, so there’s a method to my sleep deprived madness. I also really like RGLD here, and it looks like it’s ready to launch once again.
My best to you, and to yours.
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