Thursday, January 20, 2011

RIP UM UP

Should be another nice trading day if you want to try and play in a casino with a little volatility. I may try some shorts in DTO EUO. My advice to those with limited ammo left is to sit tight and let the commodity titans fight it out. It appears and I agree with this strategy .....that Benyanke wants some air out of the froth. I expect a down ward trending overall market for at least another week. Commodities are being severely beaten. They cannot be allowed to go to the moon quite yet. If you keep in mind what the game is....QE QE QE....then you know these pullbacks cannot last much longer than a week or two. I think May will provide the bigger opportunity to short. In the meantime they want that DOW 12000 number printed.

The precious metals and miners game is being brutalized. No surprise. That's always been the game with these guys. REMEMBER PMs threaten the worlds perception of the banker's fiat currency game. THEY have to keep it in check. Which is how you can make a lot of money. Realizing this lets you continue to sell the rips and buy the dips. If it weren't manipulated gold would be over 2000 already and silver over 100 dollars. In time these metals will move to where they belong. Ultimately I see gold over 5000 and silver at 200. I've been adding to a core here in PHYS and PSLV. I remain patient ..waiting to see a bottom. Let's see if they can get gold below 1350...maybe take out 1300 and get some panic. Same with silver...25 would be a nice buy area. only guesses.

Take a look at OREX....its going to be approved in my OPINION. I've been wrong on these biotechs before but OREX really has an advantage over the VVUS and ARNA drugs for obesity. VVUS IMO will NOT get approval. The use one of the components from the ill fated Fen-fen. Its phenteramine and its an amphetamine...pure and simple. This country is dying of obesity and its costs to us are staggering. I think the FDA is under pressure to get a drug in there to help. OREX is the best chance IMO.

Don't forget DCTH. Its not as sexy but it should get approval too. It is only a delivery system for giving chemotherapy directly to the tumor area.

Stay out of the way of this mess for another few days before you nibble. gl

26 comments:

  1. Dave,

    ASTM getting whacked, heheeeee!

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  2. Having trouble typing, the tears are clouding my eyes! Fortunately, still haven't bought phys & pslv. GLTA.

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  3. Hi Joe

    Do you think PZG can still drop to its 50 Dma?

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  4. Tom,

    Like to see PZG drop to 2.25, we shall see. If silver drops to $23 an ounce that would be nice.

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  5. I think they always do this at fomc time....;)

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  6. Thanks Joe how long would it take for silver to get to 23? And what do you see it price at by this summer? Can't resist asking after your Palladium call last year. PAl is being crushed today but that has been a great trade along with SWC. If these questions are annoying just don't answer, I get a ton of info just reading this blog.

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  7. With QE look for the metal dump to be fast and furious....silver aiming for 26 next stop...bot today pslv slw anv....small

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  8. nancy,

    Have fun with the market, remember number one RULE which is NO EMOTION when you trade.

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  9. Tom,

    PAL was great was n't it, from 2.80 when I brought it up to $8. Gold and silver need correction as I mentioned, by summer it should be back up again. I do not expect this correction to go past the middle of February but as always we shall see. Track the market and let it talk to you. This is the last yr for making money in commodities ( going long). Next yr would be horror time in the market.

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  10. Damn bought 5k astm at 2.92 tanking...I thought news would be good...Oh well bagholder now..geez

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  11. dj,

    I mentioned yesterday that I hope ASTM drops to 2.20, you should have waited. Price will recover but it's going to take time, average down if it gets to low 2s.

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  12. I ended up taking a tiny Put position in DIA at yesterday's close. So, some green with that today.
    Nice to see DCTH bounce. Maybe that will be the last test of the bottom.
    Hang in there everyone.

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  13. dj,

    MNKD was a nice trade at the open ( 5.10), nice bounce for trade.

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  14. doctrader,

    So far in this downturn 8.60 for DCTH has not been violated, if you recall I mentioned support is around 8.60, if it breaks then 8 is the next support. FDA decision is due around April and usually at the end of february the run up for ASCO conference starts, this puppy is going to be volatile till then unless major news comes out soon.

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  15. Thanks Joe,
    I remember your post. Just that 8.78 today is pretty close.

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  16. YEA Joe Bought too soon my mistake will not add though...As it was only a trade...Will be a baggie until I can sell at a profit....chalk it up for a learning lesson thks for helping...cheers

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  17. DEPO from yesterday's BS massacre coming back nicely.....

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  18. cab fares in Rio up 35% overnite......

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  19. mining indexes GDX $HUI bounced off 200dma....I dont think its over...but ya had to be buyin a little for the trade today...anv slw ssri hl

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  20. I'd like to see a retest of these lows and a big green candle

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  21. In regard to ASTM:

    https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B10OUaQZjkpOMzIzNmUzYTMtOWI5NS00NGZmLWFiYmItZGVjYmEyYmI4Yzhm&hl=en

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  22. good eval on ASTM Joe......

    Long term lower trend line on $GOLD is at 1300...keep it in your radar.

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  23. Well did get some good news My ethanol play peix up big AH...make UP FOR ASTM...NEED IT...CHEERS.

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  24. Hey guys, just wanted to see if anyone plays GBG. I have had good success the past year playing it. Just waiting to see where gold is going to settle before getting back in. Just a thought, another gold play to keep an eye on.

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  25. Play it small ryan looks very dilutive..not much to really hang a hat on

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