Tuesday, August 30, 2011

EXHAUSTION!


The yo yo market has left many traders whipsawed into confusion, exhaustion, and MISTAKES. Pros AND retailers. This is where leverage can destroy you completely and the recent action of the market as I noted was an indicator that policy decisions from the FED had indeed changed.

Initially the health of the market and the picture of CONfidence was considered to be vital to restoring velocity of money as more peeps became confident that the "economy" was improving and spent that dollar. Of course it was improving with over a Trillion of stimulus and 8 Trillion of Fed intervention it could only go up from the nadir of early 2009...but the GDP growth was trully abymal. I've beaten this dead horse too many times but there was virtually NO ATTEMPT AT REPAIRING the STRUCTURAL impediments to the recovery of the economy and the concomittent UNEMPLOYMENT. STRUCTURAL deficits CANNOT and NEVER have been resolved with monetary policy. I will NOT go into the structural issues.....why bother.... NO ONE SEEMS TO CARE.

We have juiced the economy for the last thirty years with MALINVESTMENTS from hot money put into "housing" ....creating construction jobs for mostly males that are now GONE for "mostly males". There is nothing out there for them and there is nothing that is going to be out there for them. The liquidity behind all of this still sits on the banks books in the form of TRILLIONS of derivatives that FAR outweigh the underlying mortgages that were created. These derivatives are hidden for a reason. THEY ARE NOT FOCHING REPAIRABLE. THEY are in the TENS of TRILLIONS. They would make anyone with a high school algebra class toss his cookies if he looked at them. But of course you will NOT be shown these "weapons of financial mass destruction".

Reminder: Tues 08/30/11 buy physical gold and silver....keep stocking food supplies...buy farmland....recheck home safety precautions...power alternatives...water storage etc.

Market strategy.....caution here but a strong core AND cash position of miners recommended. In no particular order...EXK...AG...SVM....RIC...GFI...SSRI...GPL...EGO...ANV...SLW...PSLV and PHYS for physical play on gold and silver.

We are in the late stages of the pump or the early stages of the collapse of the pump.....I pick the latter. This is where things get way too unstable in this market so make sure you are prepared. Confusion/delusion will be the purpose of many of the voices we hear on out so tune out the noise. I'm holding approximately 50% cash. I have a few shorts the rest are miners and PSLV. I won't committ any heavy cash beyond the 50%except for short term trades. gl all











45 comments:

  1. Killguy,

    SVM just put out a release that they have started buying back their own stock, about 1.6 million shares or 1% of shares OS. Large short position of around 9%. They'll have to buy back eventually, won't they?

    Nice buy point.

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  2. Hi Joe - answering yesterday's query. Lost power for a little while but not too long. Sump pump out so because I have a drainage issue I've been ignoring out front I had to stay up for a while overnight to keep leaves out of a drain, otherwise fine. Electricity back Sunday late morning. I have two large UPS devices so as long as the cable is up, I stay connected. Getting a generator soon

    My brother not so good, lives on the Pompton river in NJ, 3rd time out of the house this year alone and sure to be the worst.

    Looking at SVM, probably getting some more RWM...I left my notes at home as I'm being sucked into another a million little things right now....

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  3. Homer,
    Glad to hear you came out with nothing more than some lost sleep. Sorry to hear bout your bro but living near a Jersey river is tough. Finished clean up yesterday leaves/branches ect, didn't lose power but have a generator since the big NE blackout. What surprised me about this was how clueless people are about getting prepared.

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  4. http://english.aljazeera.net/news/asia-pacific/2011/08/2011829165436251177.html


    BCRX is best strategy to play this....looks like someone is buying on news already

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  5. Pulte shares rally on upgrade....

    Analysts believe they will sell twice as many homes this quarter than last, Jane real estate an analyst for the NRA stated last quarters sales of 2 homes will be the low point of the decade, we expect 4 homes to be sold this quarter alone....

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  6. dung beetle bought GENE and should be happy...it might be ready to run too..

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  7. Hi Kli or Joe or anyone

    How would a QE announcement affect RWM? Or how much could a new QE affect the downtrend?

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  8. Tom...QE is ALREADY in place with the guaranteed rates until 2013 and the other liquidity swaps in place...BUT the Sept 2day meeting is ANOTHER issue to juice the market and it WILL ....but prior to that meeting Ben needs some ugliness in the market and FEAR to get the peeps in line. UNLESS he has no plans to make any BIG ANNOUNCEMENT which may VERY WELL be the case. So I will watch the market leading up to the meeting for my tell

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  9. Homer,

    Good to know you are fine, your brother's situation being close to the river is surely a tough one.

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  10. Looks like Joe's IPSU trade is finally taking off...

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  11. classic cup and handle setup on BCRX...handle coming up next on pullback...vol, mac, mfi is beautiful...

    if it gets thru the 50 it could much higher

    possible double

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  12. All,

    What do you think is happening with SVM today, who is causing this ? I am clueless, heheeeeeeeee!

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  13. Joe,

    I picked up some just in time..

    GENE up 12% today...might be heading for 10 again

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  14. chuck,

    GENE is a good stock and moves with little volume due to low float. Low float is fine with me BUT low volume for ME is not attractive since I play heavy. You guys should take advantage of GENE.

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  15. re: SVM,

    Clueless but happy ;) hehehehe.

    Thank You

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  16. bio stocks might be in play on sector rotation...green vol higher across the board

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  17. KLI: You should do a post about the structural problems someday. It doesn't have to be a book, just give us the nutshell version.

    I'm still a huge fan of free market capitalism and think it can still work wonders. But the system has become so darned corrupt these days that I wonder if our founding fathers would call for a revolution if they saw our current state.

    I have some big questions...

    Can the structure be permanently fixed with laws?

    How can we keep con men from playing the system?

    Are the people in charge actively supporting structural flaws because they want to push a major agenda they wouldn't otherwise be able to achieve? (Creation of a world dollar...War with China)?

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  18. short answers jay...structural issues go to the heart of our economic policy collapse...especially during the last 30 years. Volker put things back into order but Reagan was busy making major deficit spending on the backs of the low inflation environment Volker had created ...Decisions were made after the 87 crash to deploy a suicidal monetizatiion policy to grow the economy and allow the LARGEST Corporations and manufacturers to take jobs overseas in the name of "free markets"....as Perot said this was INSANITY. THEY gave up no jobs and took ours....game over....structural dillemna created with no return. We papered over the job losses with the faux housing/construction industry for the last ten years and deficit spending on the wars (which kept unemployment from exploding).

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  19. Answer short again to repair it is GET THE MONEY out of elections...all pols are bot and paid for now....but I am not positive on the near term future....maybe in 10-20 years it will turn....we need a lot of pain first.....a lot

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  20. JOE you didn't tell me about RIC...holy chit

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  21. Boost real employment in the US through massive infrastructure build program for transportation, power, farmland, and borders plus R&D.

    The funding will have to come from dismantling the global empire and military bases that are upholding the interest of the banking cabal.

    Since the US is broke the reality is more like debt repudiation of US Treasuries, massive deflationary collapse when everybody demands international settlement in gold backed currencies and high double digit unemployment along with an American Alpo Winter.

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  22. Ric took off today sorry I let it go Friday........

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  23. tom.... I just talked to Joe about SVM but he did not tell me that RIC had exploded too......which means he is only jacking SVM today??? Someone is jacking RIC too....hehehehehhehe

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  24. kli,

    I did not forget about RIC, did not tell you about RIC because I did not know whether you were in it or not. RIC making new 62 week high, I did not forget, heheeee!

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  25. 52 week high +10 = 62 week high, heheeeeeee!

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  26. sold dcth I bought yesterday at 3.45...dang that was fast

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  27. I can't complain about RIC, Scalped a number of times for some nice coin :)

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  28. Joe....stayed in it this time for a change....took some profit here still have a core...for longer hold...may pull back after the short squeeze

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  29. KLI: We can't get money out of politics. Heck, just last year, the Supreme Court gutted most of the Mc Cain/Feingold Act after only 8 years. And that act wasn't even very strict.

    It would almost take a constitutional amendment to make it happen and I just don't see the politicians voting to stop the easy money.

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  30. exactly Jay.....see reds post....

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  31. went back to charts on DCTH and I might be wrong selling...if it can close above 4.05 it has chance to hit 4.80 area, the 60 minute 200 is holding it back at 4.05...volume it nice though

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  32. kli,

    When they droped RIC to 8.70 last week, I brought heat and intensified it today, some hedgies got traped last week around $9. When I see the time is right I bring the oven. If you recall, I hinted it by mentioning it's a good company with excellent CEO and it has been flying under the radar and hedge funds were taking advantage by shorting it and scaring average people due to low float. That right there means get ready for LEVERAGE.

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  33. And by LEVERAGE I am refering to EQUALIZER.

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  34. That was HEAT on it today.....hehehehhe

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  35. Chuck,

    DCTH had a nice close at 4.15, so far the retest of lows at 3.32 was successful, tomorrow would be interesting!

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  36. kli, this was today's theme song for RIC and SVM:

    http://www.youtube.com/watch?v=PqZ9WVBXBvw

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  37. What happened to Brian, Mr. minivanguy?

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  38. I get happy when I see my holdings in RIC and SVM go up so much. Real happy when I see my IPSU go up even more......but when I see a dog like COCO go up 20% I realize it might not be a quality bounce. I will need to trim something soon.

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  39. Picked me up a copy of Griftopia by Matt Taibbi for 70% off at the local closing Borders. Haven't cracked it yet but going by his usual writing quality, what a steal!

    Anyone recommend other good books in the economics/politics arena? (that's where the deepest discounts are to be found)

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  40. I considered picking up Bush's book, but flipping through the writing seemed pretty bland.

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  41. Kli I have HL, GPL, EXK, SVM, PSLV, GFI. some bio techs. Thanks KLI and JOE for the great blog

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  42. morla ...read House of Bush.....well researched....by Unger.

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  43. Woodcarver, strongly echo your sentiments. Kli, Joe, and this blog is responsible in large part for me making some serious $$ year, not to mention limiting my losses by going to cash back in May/June, again, based on the advice on this blog.

    A big thanks to you gentlemen, and all the other participants.

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