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[youtube:http://www.youtube.com/watch?v=dQtq4Z4t1yQ 450 300]

Coupled With an Egregious Loss of Dignity

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SLW was up 25% this past August.  You’re welcome, any time. 

I expect we’ll see a bit of consolidation in the PM names into early September, perhaps even coincident with a pullback in TLT, our nemesis.

Then again with the action in ANV today, that might just not happen at all.  I hope, however, that it will, as I would like to add a bit more ANV before that behemoth continues to roll on.  Remember what I said about how powerful that stock was off a touch of the 200-day EMA?  That was back below $16 a share, less than six weeks ago, and today she hit $24.50 before backing off to a dollar lower than that. 

Now futures are raring up in a wholly unexpected September first blastoff.  I mean who could have thought all that low volume selling on Monday could have been big money positioning? 

Right? 

PM’s may rest here, but I’m thinking ANDE and SQM — two recent mentions, along with old Jacksonian friends TC and TCK, will offer plenty of fun-haus trading for those so inclined tomorrow.   Dollars to doughnuts, our friend earl starts launching again tomorrow.   I may partake in some eeeevil ERX as a result.

For the adventurous, it looks like CREE and VECO are ready to “POWR” up one more time.  Or you can go equally nuts with Triple Sec Russell play, TNA.

My best to you and your Boomer parents.   Well, kind of.

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[youtube:http://www.youtube.com/watch?v=2uVXQ6P6UqE 450 300]

Breaking Footage from the new iBC documentary: “Perdy: The Origins”

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Do you think it will just be silver and gold that will go dotty when the dollar implodes?  Let me disabuse you.  It will not be so.  It will also be platinum and palladium, petroleum and berillium, cadmium and radium, even guar gum and Bubble Yum will be breaking out.

Better yet, there will be a metal that shines like silver, mines like gold, and — as a bonus– makes the urinal shadows go away even faster than a pack and a half of Kools and a cold cold Olde English 800. 

That metal is lithium and it’s “rare earth.”   Not only is it great for curing insanity, but it’s almost as famous for powering cell phones, stock trading robots and small chassis time machines.   What a versatile mineral, and our friends down at the Sociedad de San Paulo own it in abundance. 

Let us give alms to SQM, then,  as it consolidates that move above it’s all important 61.8% fibonacci support line.   Let also that line be your guide for closing out your investment.   The targets are just as clear in the near term.   The weekly chart reveals:

My best bet is to wait for the break at $43.87, but then, I already own this name, so I would just be adding.   You make your own choice, you’re old enough for that now, no?  Beware the slightly overbought condition, and have patience.  You will be rewarded, I’ve no doubt.

If you can’t bear to keep away from the precious medallions markets, then GSS, RBY, BAA and EXK are four smaller friends that you could look at in a small way, on a small scale, with a small cheese wedge lodged in your wallet to prevent excess de-levering.   All show some promise and may continue…

Best to you all, and gute Nacht.

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Bring your sack, the LED leaders are marching forward with their grapes of wrath unfurled, and you want to be in that number, lest you take the hard edge of me terrible swift sword.

Hmmmm…. I think I feel an anthem coming on… bum-bum-bummmmmm…. nah, it’s passed.

I don’t mean to boast idly, but I was up 4.2% today and not, as you might believe, due to my precious metal portfolio alone. Make no mistake, those names were up nicely today, with Allied Nevada Gold Corp. [[ANV]] ,Rubicon Minerals Corp. (USA) [[RBY]] , NovaGold Resources Inc. (USA) [[NG]] , [[BAA]] , Exeter Resource Corp. [[XRA]] and my baby Silver Wheaton Corp. (USA) [[SLW]] leading my dogpack of precious metallicas like a dogsledder seeking Siberia from Alaska.

Others in my port, however, were up just as — or even more — handsomely, with the “3 T’s” racking in large horde — Thompson Creek Metals Company, Inc. [[TC]] , Teck Cominco Limited (USA) [[TCK]] and benighted Titanium Metals Corporation [[TIE]] rocking worldviews, and even Sud Ameriquan lithium developer Sociedad Quimica y Minera (ADR) [[SQM]] rebounded well today. Crazy Central European Distribution [[CEDC]] has finally woken back up, and Trannie King United Parcel Service, Inc. [[UPS]] looks to be leading the rebound with the Transports.

Nothing seems to lead these markets like the LED stocks, however, and I won’t rest until M. Le Docteur de le Fly is invested in the two leaders Cree, Inc. [[CREE]] and Veeco Instruments Inc. [[VECO]] , who have become the spokesmodels for Woody’s “relative strength” in this post-apocalyptic age.

First, note the Cree, Inc. [[CREE]] weekly, and slap yourself in the head for missing this opportunity:

I’d like to see that weekly volume bar increase as the week goes on, and I believe it will, especially when taking on the daily view:

The 20-day had held support for a while, so a launch back above it should be encouraging.  I  (luckily) added 2k more of both CREE and VECO last week as I had “low-ball” (heh, right) buy orders laid in that took advantage of the downdraft.   These two are a large part of my gain advantage today, and I think they will continue to lead.

For all the relative strength shown in Cree, Inc. [[CREE]] , check it out in Veeco Instruments Inc. [[VECO]] below… surely this is one of the strongest stocks in the universe right now, no?   Lay in wait, but do pounce as I have:

Stay on your toes, and be nimble, but I don’t think this liquidity wash is over  just yet.   Stay safer by grabbing tech leaders like the LED-ers, and hard money targets.  Everything else is suspect, and should be eschewed indeud.

Best to you all.

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Omm Nom! Nom! Nom!
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Looks like Mr. Limm and kin are trying to take away our punch bowl.   Not bloody likely, I say.

You see, the Chinese really only have one way to cauterize the inflation wound they are already seeing in their economy — and that’s by removing themselves from their peg to the U.S. dollar.  They can make all the noise in the world about raising reserve requirements and dampening loan growth, but they will will still strain to be heard over the “clack-clack-clack” of the U.S. Mintex 3ooo Printing Robots in the basement of Ben Bernanke’s Transylvania Castle.

I say, if the Chinese refuse to de-peg their currancy and let the Yuan run free, naked and untethered, they ought to just continue to get drunk and buy stocks.    It’s the only rational thing to do when you are allowing your currency to be devalued right along with that of the Great White Ghost across the Pacific.  

And let’s face it, there’s only so much iron ore, coal, copper, lead, zinc, chromium and every other heavy metal for industrial usage left in this globe.   Outside dredging the Hudson River, that is, but even that reclamation project is years away.   The Chinese know all this and realize the only way to keep those prices cheap to them is by miming along to the dollar prop story.  

Again, raising Chinese reserve ratios is not going to do that if Helicopter Ben is easing quantitatively as fast as his machines can print, purchase and store massive haystacks of U.S. cabbage like he is.   We all know (and yes, the Chinese leadership knows) that fast cash to you is just heading right back into the Chinese economy via click-bought and big box consumer goods purchases (oh, and look here, retail sales are strengthening… wonder where those goods are coming from?).  What’s more, that money, once washed up on the shores of the South China Sea has to go right back into the commodity markets as the Chinese continue to build out infrastructure and purchase raw materials inventory.

Here me now and believe me later — The Chinese cannot “whip inflation” by themselves while they are tied to the dollar, and while their growing economy is tied to our consumption.   These are infrastructural realities that are not going to change because the Chinese CB has decided to take a stern line on lending reserves.  So sorry.

My take?  Eat a samich (sic) this morning until at least 11 am to see where the market settles out.    Gold is currently down only about $16 (less than 1.5%) and silver, as usual is taking it harder, down 44 cents (2.8%), with the DXY at a current $80.64.   I continue to believe this is a shakeout, and that the dollar will not continue much higher than here, despite all this “nooze” circulating to keep it propped.  If we break much above $81, however, I will be forced to reassess, and perhaps take a little off some of my riskier metal plays.

Best to you all.

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Update:  I notice in my haste to get out this morning’s post that I neglected to give you a run down on yesterday’s purchases (which were recorded in real time on The PPT, of course, as were today’s).   Yesterday I added to the following positions:

2k Petroleo Brasileiro SA (ADR) [[PBR]] @ $40.60

4k Exeter Resource Corp. [[XRA]] @ $8.46

2k Eldorado Gold Corporation (USA) [[EGO]] @ $12.66

2k Thompson Creek Metals Company, Inc. [[TC]] @ $12.67

10k NGAS Resources, Inc. [[NGAS]] @ $1.62

1K Sociedad Quimica y Minera (ADR) [[SQM]] at $37.06

This morning’s purchases (also “adds”):

2k [[PAAS]] @ $21.75

4k Gold Fields Limited (ADR) [[GFI]] @ $11.75

 

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 [youtube:http://www.youtube.com/watch?v=-ERnT1X9HPw 450 300]

A Song for the Times?
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Well, so much for Helicopter Ben’s New York Times- abetted “tightening” kabuki theater act.

Did you enjoy it?  I hear he’s been studying at the New School.

I dunno, maybe the guys down at Goldman called Bernanke up last night and asked him for some help in getting out of their Euro shorts, since DXY (sorry, no quote yet — see? [[DXY]] ) had run up to about $80.30 today by lunch time, only to tuck tail and (Black?) swan dive right back down to $80 flat just in time for Benjamin’s Jawboning routine at 2:15 pm. 

That particular bit of mummery and prestidigitation must’ve in turn convinced at least one or two bag-holding kaftan merchants from Milwaukee to buy dollars again, because the dollar index got all the way to $80.10 by late afternoon, giving us all that familiar “blah” feeling at the close.

All pretense seems to have dropped away after the stock mavens went home, however, and the dollar is now (as of 12:36 am Eastern) trading back down to yesterday’s low’s at about $79.74, looking at a “next stop” of about $79.50, and then $79 even.     Party on, Garth (and Darth… Vadon, that is).

These incipient moves should be enough to get our rally on in the gold and silver sector, not to mention our other hard currency equivalents including earl, natural gas, and the specialty metals.   I was extremely busy today and I apologize, but my punishment was not being able to add much to the portfolio, although I would’ve loved to finish my Allied Nevada Gold Corp. [[ANV]] accumulation today.   I am quite sure it will be more dear tomorrow.  

I was able to add 60 more June $40 [[GDX]] calls at $5.80.   They were a standing order, and I think I may have been able to get them even cheaper, but beggars, chooser, etc. etc.   I now have total 120 of those $40 June strike calls, and I think I’m done there.  

 The rest of my exposure will remain in liquid equities, and I hope to add to positions tomorrow in the usual suspects, and perhaps some NovaGold Resources Inc. (USA) [[NG]] , New Gold Inc. (USA) [[NGD]] and Northgate Minerals Corporation (USA) [[NXG]] .   I also like Exeter Resource Corp. [[XRA]] ‘s relative strength as of late.  

For silver I may dip my toe in the Chanci selection — [[SVM]] , as I’ve admired their price action recently.  I may also look to grab some additional [[PAAS]] .   If [[CDE]] stalls in the early trade, I may also add to that one.

Platinum is reviving tonight along with its brethren, so don’t forget about [[PTM]] and [[PAL]] . 

On the non-precious side, I may grab some [[ERX]] for a ride similar to that of [[AGQ]] .   I also continue to like Petroleo Brasileiro SA (ADR) [[PBR]] and Occidental Petroleum Corporation [[OXY]] .    I also happen to think SandRidge Energy Inc. [[SD]] is undervalued here, and it is a perennial favourite (sic) of The PPT .

Last, don’t forget Thompson Creek Metals Company, Inc. [[TC]] , Teck Cominco Limited (USA) [[TCK]] and Titanium Metals Corporation [[TIE]] in the specialty metal names, and Sociedad Quimica y Minera (ADR) [[SQM]] , as their lithium is a bargain here as well.    I expect tomorrow will be a good day for we merry shipmates of the U.S.S Jackson.

All aboard!

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Truck O’ Molten Assets
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That beeping sound you hear is me backing up the truck, and grabbing some more lovely PM positions as the sun goes down on this day of dollar death.

I’ve mentioned that I love Allied Nevada Gold Corp. [[ANV]] for the long term, almost as much as I like Silver Wheaton Corp. (USA) [[SLW]] on the silver side. IAMGOLD Corporation (USA) [[IAG]] and Eldorado Gold Corporation (USA) [[EGO]] cannot be ignored here either.   They are running on Greek kisses and Spanish wishes, but so what?   With the dollar (DXY) and it’s proxy, [[UUP]]   down 53 cents and 17 cents, respectively, as we speak, I think we may have that turn in the dollar we were looking for at last.  If we continue to stay below that magical $80.20 line, I’ll be even more sure of it.

Let’s face it folks, it would be great if the European Central Bank could maintain this Teutonic “austerity” charade with regard to it’s wayward little brothers to the South,  but the fact is, if they want to keep their phony baloney Starfleet Federation currency trading with any credibility, they will have to continue to subsidize the mistakes of the least common denominators.    And yes, this seems anti-intuitive, to save the Euro by weakening it with these bailouts, but the fact is the world markets prefer stability to necessary nut cutting.

Truth is, the Germans will some day emit a huge sigh of relief when they get their beloved Deutschmark back and they can once again run rampant over the rest of the Europe in currency blitzkrieg, if not via their formerly preferred method of  “Large Iron Rolling.”    Until then, they will stubbornly continue to try to make this European Union thing work,  and cope with continuing annoyance at those who would rather hang out in the sun, drink Ouzo  and go sailing, whilst dancing the mazurka and opening large menu diners.

All this brings me back to the punch bowl party over on this side of the pond.  With the Euro saved,  for this week at least, the robots at Goldman Sachs have been re-programmed to short the dollar and buy Barbie dolls and other such Mattel, Inc. [[MAT]] toys — Hasbro, Inc. [[HAS]] anyone?

We, the proleteriat, can now come back down off our panic chairs and continue with our most profitable line of employment — namely, fondling gold bars until their corners go smooth and sucking on silver ingot lozenges until our colds go away.

I continue to love, and accumulate the above mentioned names, and in addition I am grabbing, as I type (with my other hand) some [[EXK]] , Royal Gold, Inc. [[RGLD]] , Exeter Resource Corp. [[XRA]] and the “N’s” — NovaGold Resources Inc. (USA) [[NG]] , New Gold Inc. (USA) [[NGD]] and Northgate Minerals Corporation (USA) [[NXG]] .   

Last but not least, I like lithium (you know why, don’t you?) in Sociedad Quimica y Minera (ADR) [[SQM]]  , and I like to say “molybdenum” ten times frontways and then ten times backways.   If Thompson Creek Metals Company, Inc. [[TC]] is not bought out by the likes of BHP Billiton Limited (ADR) [[BHP]] or Freeport-McMoRan Copper & Gold Inc. Freeport-McMoRan Copper & Gold Inc. Freeport-McMoRan Copper & Gold Inc. [[FCX]] or even Teck Cominco Limited (USA) [[TCK]] (its fellow Jackson) within two years, then I’ll be greatly surprised unto paralysis.

Peace be upon you, my brethren, as our plan “comes together, right now, over me.”

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