Monday, June 13, 2011

GREECE!

Its the new white meat in town and its about to be fried. Whether the can gets kicked or not there will be fire. The smell of austerity is starting to drift across the continent. If I had all the answers to what will happen to Greece I would be in my yacht off Corfu downing a couple of gin and tonics. I can tell you a couple of thoughts and that is Greece will end in default and it will be handled as a "repackaging" of their debt. This will be a trip wire for the collapse of the Euro. Watch the riots begin now....its summer. Its hot and the public cannot be suppressed with smoke and mirrors forever. Without the debtholders taking a beat down the riots will begin to spill over into the other PIIGS this summer. I cannot predict the paper trade in gold and silver. The forces that preside over these trades is still in control. Unfortunately for them the internet is disseminating too much publicity on this trade and the physical metal is being accumulated. It can still be manipulated so never underestimate the strength of the boyz.

Given the cycles still in play one can expect Ben to pull a couple of more rabbits out of his hat before the Kondratiev winter begins to roll across the landscape in earnest. Cleaning is a universal business. Its performed along all sectors of life and is a very necessary function. Now our time is about here and I want all of you to know that participation in the casino is going to be extremely dangerous from here on out. Ben claims to have removed your QE training wheels. He doesn't need QE for the bonds if the market is tanking and deflationary collapse begins. The bonds will do quite nicely for awhile. Equities are a different story. As liquidity begins to dry up expect dramatic movements in the equity markets. 3-6% moves will become more common intraday. The beast will be unleashed again and it is hungry.

I cannot tell you it is now but it is gettin closer. If you wish to continue down the road shorting the market just be aware that the swaps and liquidity that supports the money markets and your favorite etfs is absolutely a house of cards. They know this and CONfidence is essential to maintain their function. Its everything. If it is lost then our little game is over and the K winter begins as a blizzard from hell. If you are reading this and you stay in the game then you better be praying that Ben and the boyz hold it together. If they don't then you will have nothing in this paper game other than dust.

We should be getting close to a bottom in the miners at least for a trade. The safest route is to pick some of the solid players like HL EGO GFI EXK and try to daytrade them. 20-50 cent moves can be nice change. Just pick your spots. EUO still looks like a play and may prove to be a winner this summer. nibbling on DTO may work too........but ONLY nibbles. gl all

31 comments:

  1. Homer,

    Nice short covering underway on PZG today!

    ReplyDelete
  2. HNR exploding

    http://www.reuters.com/article/2011/06/13/harvestnatural-idUSL3E7HD14X20110613?feedType=RSS&feedName=rbssEnergyNews&rpc=43

    ReplyDelete
  3. I'm watching EUO.
    Despite it being down so far today, the August 17 call option is up 0.10.
    Hmmmm

    ReplyDelete
  4. bunch of charts and points to ponder here..
    http://www.scribd.com/doc/57693357/CHTMNW-6-9-2011

    Bcrx....yum...

    ReplyDelete
  5. Joe,
    Remind me to never play poker with you...Cant get a read on ya buddy...but I am not complaining...Actually took profits and sold Friday...I have learned not to get greedy....

    ReplyDelete
  6. Chuck I see your old favorit is up 52% this monring...RPC.....lol

    ReplyDelete
  7. sorry guys spelling is much to be desired this morning...havent had my coffee and redbulls yet!!!!

    ReplyDelete
  8. PZG & GPL getting some nice volumne...

    ReplyDelete
  9. hey all..just jumped in SCEI...for possible squeeze...

    ReplyDelete
  10. itsa dead zone out there......ben has killed the market.......

    ReplyDelete
  11. i traded out of most of my remaining gpl

    ReplyDelete
  12. tried a trade on ezk...lost 10c

    ReplyDelete
  13. Yeah opp's anything silver..... My pslv hurt's!!

    ReplyDelete
  14. Joe...yes ORS is up 67% this AM however when is this thing going to fall 70% so your buddies can get in????

    ReplyDelete
  15. Joe......RCON might be very interesting....

    ReplyDelete
  16. Congrats on trade of BCRX...Could go higher...nice call in low $3...when I played the stock in 09 the volume was enourmous...This is fo sure a traders mkt....LNG wow cheap...SPPI looking good and Aezs Holding up great maybe turning green sometime this week....funky markets....

    ReplyDelete
  17. http://www.optionpain.com/OptionPain/Option-Pain.php

    ReplyDelete
  18. took a swing on LNG today...still holding an cant watch the ticker....uggggh...at wurk

    ReplyDelete
  19. KLI sometime this yr....I do think LNG goes to atleast 14-15..I am looking for entry point...My only question and this is short term cause longer term LNG looks great but in next 30 days I wonder about the weekly chart stock broke below its 200 day MA....Will watch LNG but want back in...It is a great trading stock...

    ReplyDelete
  20. KLI,
    I think Joe might have just opened a door for us in ORS.....

    ReplyDelete
  21. EVERYONE on CNBS Fast money was bullish Silver for the Past 8 weeks....especially Guy Adumbi

    ReplyDelete
  22. Kli - Drokes update on Kress cycles, but you get the privilege of reviewing and posting on it. Kress is your baby. Hehehehe

    ReplyDelete
  23. Dont watch CNBC but guess you mean its the same as Cramers opposite calls?

    ReplyDelete
  24. saw it inlet thanks ....will get it up later

    ReplyDelete
  25. i wonder why the futures are hopping

    ReplyDelete
  26. This was a great post Kliguy, I enjoyed it very much. Keep up the good work. Very informative. I hope your prognostications prove precise and accurate. It all seems very plausible and very real. Thanks !!

    ReplyDelete
  27. "As liquidity begins to dry up expect dramatic movements in the equity markets. 3-6% moves will become more common intraday. The beast will be unleashed again and it is hungry. "

    Kli,

    if you are correct with the 3-6% swings, do you think you would throw a few chips on VXX in the future, or is that not worth the headache and risk. i know its extremely risky , but if your scenerio does play out , it would seem the risk/reward might be enticing.

    ReplyDelete
  28. Anyone watch the republican debates? Funny how CNN decided it was fair to let Ron Paul hang out and commentate on a debate [I]that he was in[/I]. "Neutrality!? Oh, come on it's just Ron Paul.."

    I like Congressman Paul but it's sad that CNN finds him so nonthreatening they'll just hand him free publicity because it doesn't matter.

    ReplyDelete