Sunday, December 12, 2010

MONDAY MORNING REPORT

Monetary stimulus is the only game left. The American electorate is NOT going to allow any further fiscal stimulus. The deficit has now reached an extreme for that to be allowed by the public (not that the public really has a clue). The politicians only need to look across the ocean (when the news isn't blacked out)and see what is coming here in a few months when the piper has to be paid. Can you imagine when you get your kids tuition to state U and find out its doubled in one year. Even the sheep are getting suspicious of their paper currencies. Gold (and silver) are real money. That is WHY EVERY SINGLE CENTRAL BANK IN THE HOLDS GOLD. Think about what I just said. WHY would these banks of all banks hold gold. The answer should be obvious to you.

Look at the long bond auctions. If QE II lets the long bond get over 3.5 and stay... then I may have to rethink my prediction that they will keep control of this game for another year... but I have faith that Ben can keep us going for another year. Look for them to keep the long bond below 3.5....For a nice summary and perspective on this you should read the following article.

http://seekingalpha.com/article/241348-unintended-consequences-of-monetary-policy?source=hp_wc&wc_num=1


If you have faith in the ability for the ponzi to continue and I do...then you have to take positions in the commods on weakness. Watch SWC and PAL. Have a position....keep it small.

I'm watching the uranium sector closely per Joe's heads up and I own UEC. I hope we get a little more pullback to add.....but...it may have corrected. Keep printing Ben.

$GOLD looks like it bounced off the 50dma. Does it take off or does it head for the 200dma. There is good support at 1325.

GDX is my proxy for the gold miners and it is in no mans land. I own ANV GFI EGO here but the positions are small. If they take off strong then I may start trading them on the long side.

Silver. What can ya say? Just a monster. $SILV looks like a better bet than gold short term...but don't go crazy....play PSLV or SLV....PSLV for the conservative (I want the real thing) investors out there. I think its trading over 10% premium. How about that? That tells you that NO ONE trusts these paper trades. PSLV IS i repeat IS backed by silver bullion. Also pay close attention the next two days to silver if it moves green then its going to see 33 soon.

Don't forget the biotechs ASTM and the monster DCTH....nice week in DCTH. ASTM IS A trade and don't go crazy owning it. Get out of it it breaks 2.20... I think they will hold. But its one of those spec plays.

Lastly but not leastly this market needs some air taken out so be careful...don't lean long too much here....

Enjoy your holidays gl trading

20 comments:

  1. check out December 10th article:

    http://walayatstreet.com/

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  2. Sorry Walayat not enough bullets when the Alpo runs out.

    Will trade my measly couple hundred ounces of silver for the means to produce my own Alpo if it hits even half of $500.

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  3. Anyone thinking about trading their yellow coins for silver ones?

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  4. UEC appears to be trying to find support right here...hehhehe.....just had to add a little.....if it breaks this resistance then 4.88.....then 3.55...but i'm thinkin positive

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  5. oil should break 90 today...take that ponzi boys
    Joe six pack need bush back in to take it to 140 again....Maybe O can do it for him....

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  6. UEC bounced nicely at my buy point......call me old fashioned buy I'm not trading it here.

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  7. How much can Morgan control the silver price with derivatives now? Maybe better to have $100 silver than $500 per walyat's scenario. GL everyone.

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  8. Nancy,

    Walayat did not say Silver to 500, he was challenging that approach by others.

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  9. CCME was an excellent gift on Friday at 14.30. The odds of China raising rates again this month was only 5%, unlike what most average folks thought, heheeee!

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  10. joe got part of the ccme trade today not all of it but grinnin like a possum in mo.

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  11. kenny,

    I posted all those links including CFO of CCME buying 100k shares at 15 on Friday, if the odds of china raising rates on the week-end would have been high, I would not have brought CCME to you on Friday. Think like a pro NOT like a retail trader. Goldman created disinfo giving average readers the impression that chinese would raise rates again and as usual people fell for it.

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  12. joe long ways from a pro just try to look and listen then pick a point to enter i am grinnin not greedy

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  13. kenny,

    Your approach is correct, remember NO EMOTION when you trade and always take profit.

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  14. 25% of the float on CCME is still short, big boys shorted this one after November 8th when it hit $22 a share. Their P/E is ridiculously cheap in compare to their earnings per share. Support is around 14.50 and resistance around 17.50. If management decides to buy back shares or announce dividend then this one will have one heck of a short squeeze.

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  15. http://finance.yahoo.com/q/hp?s=CCME+Historical+Prices

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  16. news on URRE:

    http://finance.yahoo.com/news/Uranium-Resources-Inc-bw-2787019350.html?x=0&.v=1

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  17. Kenny & Jim

    Do not forget about OREX, the FDA approval date is Jan 31st 2011.

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  18. Morla,

    How is your GORO holdings? Great stock, beautiful gains from $2 a share to the current $28.

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  19. GORO ran me between $7.00 and $10.50 this year and last (some buy high / sell low action in there too). My GRZZX and cash hedging tends to be aggressive and my SSRI entry points are often severely questionable, so I'd be happy to finish 2010 up 20% overall.

    Oh I haven't decided to give up on that small ALU position I took at 3.11. Do you think the volume has cooled down enough for good odds that some intermediate bottom is in?

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