Monday, September 5, 2011

AINT IT A BITCH!


Gravity that is. RIGHT now its pull is an overwhelming force that needs to obey its law of physics. Levitation is a trick...NOT a law of physics. Now the law of nature is exerting its force and it must be obeyed. Now, having stated the obvious let's look where things are. I'll use my dyslexia to abbreviate and move on. Germany and the Eurozone is the whole ball of wax. I'll let you know a little secret. Germany is going to be a sacrificial lamb for the Eurobanks. They don't care one iota about the Germans and only want to suck the last drop of blood from them to help recapitalize their banks....ie to hold up the bondholders (themselves). Actually it is no different from what is going on here. We are the host and the bankers are the parasite. A good parasite host relationship exists when the parasite can derive the maximum sustinence from the host (eg. U.S., Ger., Russia, France etc.) without destroying the host. The bankers are not just a highly developed parasite....they are the ULTIMATE parasite.

We are not going to see an "over the cliff" episode here. Hopefully we will get an opportunity to enter some more longs in the miner's trade if a significant pullback occurs. If the overall market pulls back in the next few weeks to a bottom such as 1050 or less I know I'll be looking for long trades to enter to ride for a few months. NOTE ..A FEW MONTHS. Not just miners but some others like S, SGY, HERO, ATPG, WPRT, etc.

Right now the fear trade has been working with gold and silver. Silver has more potential the rest of this year AND so do the miners. I still like EXK AG SVM RCI SSRI SLW. We're in a trading war so play the swings and hope for some blood. REMEMBER you need a core. This trade WILL run off and leave you during the next two months. It has left me before so hold that core and hope you get to add to it on a nice pullback.

The Euro is flirting with breaking 140. That has been an exhausting trade with EUO...but i believe they are about to let it go.

Big week ahead in Germany with the German Court decision on the bailout. Don't worry they are bought and paid for like our Court is so they should OK it. Look for Merkel to get over-run by a mob when she sell out her country. This game is getting to the nuclear stage so hang on.

Remember how many times I have repeated CONfidence as the primary driver of all of these manipulations. Now you are hearing it virtually every hour in the commentary on the MSM. It has become a mantra for the talking heads. Too bad they just can't wrap their arms around what REALLY restores confidence. It isn't the "good ol boy" system. It isn't the "business as usual". It isn't "too big to fail" so lets rape the public instead. It isn't about catch phrases and destroying the constitution with threats of fear and false flags. It is about integrity and ethics. These are simple concepts that "they" have NO CLUE about and therefore WE are screwed and so are THEY. gl








42 comments:

  1. Kli,

    I give you credit. you nailed it with that catch phrase CONfidence. the last 2 weeks, the talking heads use that word every other second. i just chuckle. it is such a con game. you nailed the the miner trade. bravo. i didnt reep the benifits like i should have. haha. tough game this is. best of luck to you and the posters on this board. interesting times these are. one last note, seems like food prices cant stop rising. a one lb box of spaghetti costs between $1.40 and $1.55 now, a few months ago it was at $1.05. not sure how people that live pay check to pay check, can hang on.

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  2. This is going to be an interesting week for SVM!

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  3. Looks to be an ugly day in store for tomorrow. Got out of almost all of my miners last week, as there was too much profit to simply leave on the table. Will be looking to re-enter as soon as there's a pullback.

    Watching SVM closely and I believe Joe indicated that for us small fish, the $6 area would make for a good entry. Also letting all of my RWM ride it out for now.

    Also wondering if it's safe to short some of the financials for a while on the ride down to the 1050s or below.

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  4. The "Keystone Speculator" site has a Euro Chart and a daily & weekly dollar charts. KS continues to predict the Euro will fall and the dollar will rise--perhaps to 79.

    I am still holding my EUO calls. It has been like watching a pot of water waiting for it to boil. I think a bit of steam is starting to appear above the water though.

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  5. i know this is sacri-religious, but has anyone considered shorting gold with DZZ at these levels for a short term trade?

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  6. garbage alert, FCEL reports earnings today. could be very interesting if they have some good news.

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  7. not unreasonable mood but they just announced another margin increase in Asia and it still is going up......but yeah go for it.....not me no reason to step into the trend.......yet

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  8. Kli,

    true, so true. fighting trends can sometimes get one run over. haha. any thoughts on solar? I know this is not a good environment for that industry, considering it feels like the wheels are coming off, but everyday it seems like another downgrade. almost feels like, a short term botteming process may be taking place in solar. some solar companies are going to survive , FSLR from a safer risk standpoint, seems interesting to me. they should be a survivor. used to love LDK, but the uncertainty of that company makes me take a pass. considering the likes of STP, and YGE in the future.

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  9. sorry for the lack of response...trying to trade SVM and just adding very small ssri gfi ag pslv...just giving this some time....

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  10. hold off on solar until market hits tradable bottom.....it will get some squeeze...but hold off ...they're shaking out the players now..

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  11. Let go most of RVM this morning! Sweet...... SVM hehehehe ;)

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  12. Oil at $89 a barrel was a good short, as I mentioned close to $90 a barrel was the top for oil, so DTO doing well. Oil needs to test $69/70 a barrel which is $15 lower than where price of oil is and that means nice uptrend for DTO.

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  13. Angela Merkel says she will do "whatever it takes to save the EURO".....TOTAL NOISE!! she is checkmated...she will get thrown out by the german masses

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  14. The elevator for OIL is down, which means DTO very yummy, heheeeeeee!

    http://www.youtube.com/watch?v=XWhInhE6emE

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  15. Deflationary economic forces starting to show it's ugly face, hell is coming, hell is coming, and that means time for OZZY:

    http://www.youtube.com/watch?v=LL3vmVjYjBQ&feature=related

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  16. http://business.financialpost.com/2011/09/06/vote-of-confidence-for-silvercorp/

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  17. Joe,
    This epic fight has 2 sides...
    Black Sabbath
    http://www.youtube.com/watch?v=4EL67mjv1nM

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  18. honest,

    great song, i had a feeling that was the one you picked. one of the best albums from that band, in my opinion.

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  19. Chuck,

    Indeed always two sides, except that majority of the society due to their greed, complacancy, sense of entitlement and therfore spending beyond their means and giving in to keynsian approach of BORROW and SPEND will see the HELL. The heaven which is the other side is for those who planned right and therfore their chances of survival and prosperity is much better but this group is much less in numbers than those in trouble.

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  20. it looks like us/jpy is inverted h@s...
    YCS might be play here...

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  21. Euro broke 1.4 in intraday trading. Popped back above though.

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  22. mr kli,

    i took the bait, and went with DZZ for a short term trade. i wanted to play with fire. i like the risk/reward short term. though getting run over by a trend may not be good for my health.

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  23. If you have debt, any form or shape and that goes for mortgage as well, then you are not FREE. Debt means subtract your savings from what you owe. Nothing is yours as long as you have DEBT. Paying mortgage means house is not yours, it belongs to banks.

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  24. Joe,
    I used to mention this a lot on another blog...Debt likes to sleep with the Devil...those sheets are too hot even for me...

    I look at a lot of credit reports...that sucker gets around

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  25. Joe,

    yep totally agree. i have a mortgage, the banks own me .

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  26. Debt and procrastination are never good, even if you agreed with the word of mouth to pay some one without official signing of any form of paper and for whatever reason have not paid what you agreed then you OWE and nothing in life is worse than owing to another human being or nature. All debts will be collected one way or the other, no exceptions and that's nature's law. So do what you agreed to do!

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  27. Joe,
    Spot On........ but could you foward the above mentioned statement to the TBTF a$$$ holes!

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  28. is the fx carry trade slowly turning over to us/jpy and away from eur/us like the old days...?

    sure looks like it's finally going to happen...JPY has been too strong and new PM guy might feed the press ala benb...

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  29. JMO, gld short or puts may be better than dzz, but I'm playing neither b/c of European situation.

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  30. The boyz are playing games again trying to get me to puke up my short positions. Nice try boyz.

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  31. joe,

    what about the function of a mortgage as a hedge against inflation. i am old school. i don't owe anyone, anything i can't immediately repay, however, in the case of a mortgage, it basically insures that my $1 today has the exact same purchasing power many years in the future. why is that a bad thing? not to mention i can deduct the interest in a climate of very limited deductions. love svm by the way. thank you, g

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  32. The problem with a mortgage is deflation. Nobody has seen it in 75 years but it returns when the current fiat currencies finish their toilet paper run.

    Your loan is still the same even at 2.5% interest, your home is worth only 25 to 33 cents of the loan value. For the luckily employed your wages may remain flat to a pay cut of 1/4 to 1/3. Food is still scarce and expensive.

    Most people will continue to try to make payments to continue renting from the bank in this scenario rather than walking or squatting. Don't believe it can happen, imagine Detroit spread across the countryside and then the world.

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  33. Galt,

    The best way to answer your question is for YOU to answer it and that way you will never forget, in order to do it you need to answer sub-questions and then the main question based on answering sub-questions answers itself. A mortgage is supposed to insure that there is a roof over your head provided you can pay the monthly payment since most have got into habit of trying to buy what they could not pay all at once. A mortgage does insure anything other than that. If you had a $300k house, you would be LUCKY if you can sell it for $100K now. Based on law of common sense, how is that insuring the purchasing power of the $1 you mentioned? Mortgage never intended to be an INVESTMENT eventhough after 1930s, due to credit expansion and Central bankers devaluating purchasing power of Dollar but maintaining demand pull-inflation made the prices of housing go up as well. Now, you still have devaluation of Dollar which is reduction of Dollar's purchasing power BUT you do not have demand pull-inflation and that means price of housing would remain suppressed for many yrs due to lack of good economy, lot more unemployment,,,etc. Housing price does not go vertical during STAGFLATION ( stagnation of jobs and economy + rise in price of essential goods/services) or actual deflation which includes asset deflation. You are not going to see demand pull inflation ( Excellent growth in economy and rise of prices due to expanding economy) for many yrs to come. Those who bought a house 30 yrs ago and sold it at 2005 benefited by selling it higher than what they bought it for but then it comes down to overall purchasing power of dollar itself which has been in the downside for many yrs. Public in this country got into bad habit of convincing themselves that housing is an INVESTMENT, reality will teach them otherwise.

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  34. I said, " Mortgage does insure anything other than that", I meant DOES NOT.

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  35. At the current pace of foreclosure it'd take 60 years to clear all the mortgages currently in default.. You'll know inflation is coming when the banks decide they actually want that collateral.

    I'm aware they still have to retroactively change a few laws so all their forged documents don't slow them down but they're good at that. There will likely be a cost-of-doing-business settlement to placate the plebs.

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  36. The economic cycle every one especially here is facing is the reaping time that started after WWII and now the piper is due, the upside fluctuation took over 60 yrs and down side crash would happen fiercly in 3 to 5 yrs ( flushing) and after that you are talking about starting all over new cycle again which will take yrs again to rise. Demand pull inflation has gone byyyyyyyyyyyy and won't be seen for many yrs.

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  37. Bankers have no control over demand pull inflation, since they do not have the power to create productivity and generate meaningful jobs. They have no control over velocity of money either ( speed at which paper money exchanges public's hands). They can print money which is trying to pump the money supply and generate inflation in essential cost of goods/services for a while untill supply and demand rule takes over but they have no power as far as generating great employment and increase productivity and bring in new product ideas.

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  38. All,

    Make sure you can distinguish between STAGFLATION and demand pull inflation when you mention the word, " INFLATION".

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  39. Joe,

    earnings for FCEL just came out tonight. seems like a pretty positive report. defineatly a step in the right direction. any thoughts?

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  40. Dipping in gdxj now...interesting how mkts. down, gold/silver down a little and many miners up today...could it be the start of something BIG? And Joe, I have learned economics from you and Kli...just heard someone mention the velocity of money today and I knew what they were talking about! LOL!

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