You’ll be Fortunate if You Can Keep Your Moustache Clean
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Just get in the manhole and try not to mind the company of the rats. That is, unless you get hungry over the next couple of days.
I think we are going to hit that dollar high in the next few days, probably by Wednesday, as this Greek PIIG drama doesn’t seem to want to go away. That means we will probably see one final washout in the market as well, before a recovery.
The good news is that the precious metals — gold, silver, and even more so platinum and palladium, are hanging in there and remaining rather unfazed by this most recent 50+cent appreciation in the DXY. This is encouraging and may signal that the metals themselves will be turning before even the market.
That being said, I wouldn’t be surprised to see one final reach down as the dollar heads to our target in the $80.20 range. For gold, that might mean a test of the $1,030-40 area after all, and for silver, likely a break of the $16.00 mark. I will be poised for that event — and on any rapid shakedown to these levels I will be adding egregiously to my [[AGQ]] and Royal Gold, Inc. [[RGLD]] for certain, and quite possibly I may add a touch more Allied Nevada Gold Corp. [[ANV]] , Eldorado Gold Corporation (USA) [[EGO]] and [[EXK]] as well. I am holding out for one last purchase on the June $11 Silver Wheaton Corp. (USA) [[SLW]] calls too — hopefully in the low $3.00 range this time.
We had quite a beard-curling day on Friday and I wouldn’t be surprised if we opened strong on Monday, only to give it all back in a nervous, feckless cowardly bout of trading that meanders thoughtlessly even unto Wednesday.
I say to you, now, do this: Grab some cigars and some cheap bourbon and call five of your favourite (sic) comrades for a poker game below the city streets, under the comforting aegis of a two inch thick Neenah Wisconsin-forged steel manhole cover. There, among the hollow echoes of the moist, steam-filled tunnels and amidst the occassional squabble with the rats over the Cheez-it bowl, you will remain relatively unscathed — and perhaps more important, distracted — in the days ahead.
Later, this week, we will comb out our moustaches and re-take our rightul places on the street-side of the manholes, where we shall kick various bears and their entourages down aforesaid (still) open cataracts, where they shall each reside again in bitterness, without the aid of kerosene lantern, cozy parka, or thrilling paperback romance novel.
Off to price expensive cigars and cheap, but bracing bourbon. Bless you, my friends.
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