Monday, May 3, 2010


Let's see what happened over the weekend. Greece is now saved. Now doubt about that. Its all over for that debt crisis. Grecians agreed to work until they are 90 and to forego any medical care unless it was an acute gunshot wound or imminent death. All unions were dissolved as of today and oozo would be mixed 4:l to save the precious elixir. The bath houses will make olive oil available for nubile buns but only upon demand. These austerity measures were met with riots in the streets. Baklava was thrown at troops guarding the parthenon and other national treasures.

Back to our shores. Warren Buffet was on CNBC fawning over Becky Quick like a teenage boy at his sisters first girl sleepover. When asked about Goldman..." I could see no problem with that transaction." Walter stoichly defended hs interests with a blistering defense of the "boyz". At the age of 97 it is pathetic to see him slither on his bellow like the viper that he is. But then that is the game, and Becky was hot.

Expect business as usual. Market may go down or the market may go up. If does either I will make money. Oh wait. Maybe thats too much lying. Lets put it this way. I like the strategy of owning physical gold. Let's get some 2nd derivative trades off of this disaster in the gulf. Should see more there today. gl gang

It could probably be shown by facts and figures that there is no distinctly native criminal class except Congress.
Mark Twain

May 3 (Bloomberg) -- Gold, trading near a five-month high, may drop as the dollar advanced on concern a 110 billion euro ($146 billion) rescue package for Greece won’t contain the region’s debt crisis.

Bullion for immediate delivery was at $1,178.07 an ounce at 2:19 p.m. in Singapore after falling as much as 0.2 percent earlier. The metal rose to $1,181.73 on April 30, the highest level in more than four months. Gold reached a record $1,226.56 on Dec. 3.

“We might see a bit of consolidation,” said Darren Heathcote, head of trading at Investec Bank (Australia) Ltd. in Sydney. Gold may have “the odd little bit of reversal,” said Heathcote.

The dollar gained for the first time in three days, adding as much as 0.5 percent against a basket of six currencies on concern that the European Union will struggle to win agreement from its members on the aid package. EU leaders meet on May 7 to discuss the timeline of parliamentary approval for loans to Greece.

Gold may also track a drop in equities after Australia unveiled plans to impose the world’s heaviest tax regime on mining companies. Shares of BHP Billiton Ltd. and Rio Tinto Group declined in Sydney trading on concern that the so-called super tax will cut billions of dollars from profits.

“Quite often when we start to see uncertainties in the market, you get contagion across all markets, then you do sometimes see short-term selling,” said Heathcote. Australia’s S&P/ASX 200 Index dropped as much as 1.1 percent.

Still, the precious metal is up 7.4 percent this year as “it seems to be benefitting at the moment from almost anything,” Heathcote said.

“Gold has taken on a positive tone and is unlikely to lose that going forward. On the one hand it benefits when we get a stronger euro, risk is on and everyone’s diversifying, on the other hand when things looks a bit unstable then we get safe- haven buying.”

Platinum for immediate delivery dropped 0.3 percent to $1,731 an ounce and palladium was little changed at $548 an ounce. Silver fell 0.2 percent to $18.595 an ounce after jumping as much as 1.6 percent to $18.7645 on April 30, the highest price since Jan. 20.

update I Reuters) - Gold ended up on Monday but an earlier rally to five-month high ran out of steam, and the metal was underpinned by safe-haven demand as a record aid plan for Greece failed to quell wider concerns on a euro-zone debt crisis.

A Wall Street rally based on improved U.S. manufacturing data has partially offset skepticism to the 110 billion-euro ($146 billion) EU/IMF bailout for Greece, which prompted investors to switch funds into hard metals assets such as gold, traders said.

James Steel, chief commodities analyst at HSBC, said that more uncertainties about debt-laden Greece and worries that the crisis would spread to other euro members could support gold in thin trade. "That has been the key factor behind gold's recent strength," he added.

Analysts said that gold's underlying strength could be shown by its defying the dollar's strength against the euro, which fell to $1.32 due to doubts about Greece's ability to implement budget cuts.

Spot gold rose to a 2010 high $1,187.41 an ounce, also firmest since December 4 earlier in the session. It was at $1,183.30 at 2:36 p.m. EDT (1836 GMT), up from $1,177.25 late in New York on Friday.

Gold's appeal as an alternative to paper currencies can be seen as it hit record highs in euro, sterling and Swiss franc terms.

European markets .FTEU3 contained a dose of skepticism and traded almost flat toward Greece's news, even as Wall Street rose 1.5 percent on the manufacturing report, which also boosted the dollar


  1. have my NLC position lets roll

  2. I just saw their CEO interviewed on CNBC.

  3. It had a nice dip this morning. Hope you got it at around $26

  4. theres my first 2nd derivative trade hehehhe

  5. I picked up front month contracts off the gap fill, running like a scalded dog;;

  6. bot at 26.25 sold at 28.68.....nice

  7. ener just filled the at 7.11

  8. cnam that dog is fillin the gap right here....not playin it tho

  9. but I still have that position...ouch

  10. OK no mo trades..reloaded a few miners i sold and am outta here for a couple hours.

  11. whew, not sure what's going on, but can see why you eliminated "anonymous". Are the miners not participating due to the autralian and tanzanian taxes on them? Is this likely to spread?

  12. I'm down $700 today.

    Hope it changes late.

  13. sister,

    Also combination of strong dollar higher fuel costs denominated in US $ impact all foreign mining operations. The taxes will mainly impact the shares of companies with significant operations in Oz and Tanz, physical commodities don't care about no stinkin' taxes.

    Have to wait until we get a few days above 1200 S&P (middle Bollinger Band)to be fairly certain the ramp party is starting back up again.

    Stagflation, taxes, and high unemployment will help accelerate the decline in a couple years when Mother Nature smacks down the leveraged Ponzi.

  14. Miners will take an initial hit when "true overall deflation" kicks in to clean the ponzi. That is probably the K winter comiing in a year or the meantime is red says fuel and mining costs will have a headwind on the earnings. They should be fine for trades and hold. As K winter begins Miners will get hammered with overall market. Will lower fuel and labor costs they will perform VERY well after their initial hit. Phyasical will be fine period.

  15. Stagflation may already be here, and you guys may be wrong about alpo as the gourmet dinner entree of the future.

    Just happened to notice alpo is .75 a can whereas its human sister, dinty moore, is .69 a least at my local grocer.

    I shorted SFSF today, I think this pig is going to bleed tonight.

  16. You don't think people food is healthier than dog food, do you? Look at the salt content alone in Dinty Moore. ;-)

    You could go this route...good price ($200) off|3605|75277&N=4040913&Mo=24&No=0&Nr=P_CatalogName:BC&cat=75277&Ns=P_Price|1||P_SignDesc1&lang=en-US&Sp=C&topnav=

  17. Well KLI, I dodged a bullet today. Played around with some AIG puts right after the morning bump. By the time I got out of the shower, was down $1000. (Keep in mind, the market opens at 6:30 AM here on the west coast)

    Then watched AIG slowly grind downward the entire day. Ended up selling 5 minutes ago for a $143 profit after commissions.

    I need a rest. Too much casino lately.

    I'll be reading you blog for your plays tomorrow. I want something with less risk, my stomach can't handle this.

  18. I am in agreement with Homer. Would you share a meal made the Nestle or the producers of Spam?

    AIG, piece of craps , so they will hold the price line as technicals bottom out and then gun it to squeeze the shorts. Grab a donut and don't use too much logic figuring out why?

  19. Joe wants comments on CLH ....input please T/A boyz n girlz

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  21. CLH commodity spike gold rush. There job is site specific not cleaning up the entire Gulf Coast or protecting marsh lands. Knowing how politics works, the BP piggy bank will be spread around. Short term range is 64-68.5 for CLH with breakouts on either side highly likely, intermed is anybodies guess how high it can go on commodity spike before crashing.

    If you are going long in the cleanup play at this late in the game you might want to wait until some of the early pioneers get some arrows in them first and pick up the survivors who actually get the contract.

  22. Hey, guys, thanks for the responses. I did ok today with slw and anv; swc, auy, and jag not so hot. Martin Armstrong is saying in the near term dollar, pms and oil all up. Also got the ands annual report, am holding a smallish position, it had a nice day. Hope all are doing well, had a bit of a fright when I couldn't access the blog this morning!!! I read religiously even if don't always post.

  23. Interesting speculation on what the Chinese Ponzi addicts will buy if housing has been taken off the table. I don't buy the argument of crashing in 9-12 months in isolation since China had been taught by the best Ponzi masters, the US, and the fates of the two are intertwined. Miners will have some problems due to the higher fuel charges so BP can clean up the Gulf and build a new drilling rig.

    "The clampdown on property speculation may prompt investors to turn to the nation’s stock market, Faber said. Still, shares are “fully priced” and Chinese investors may instead become “big buyers” of gold, he said."

  24. Can someone say what happens after the gap is filled on a particular stock? Does the price tend to move sideways for a while, or does a gap fill signal a reversal, and then back up?