Let's get this party started...
Gold & Silver poppin' and the gold & silver stocks hoppin'...
And with the light holiday trading volume (Friday's
rally was on 1/3rd normal volume), we have a perfect storm
for a little year end "tape painting rally" today and
tomorrow.
So if you want a little "mad money" to scoop up all those
post Christmas bargains... here's your trading opportunity.
And the good news for 2009, is that this rally is finally being
powered by the fundamentals of a higher gold & silver price,
lower energy costs, renewed geopolitical risk with
Israel/Palestine and India/Pakistan, and weaker US Dollar
fundamentals driven by simultaneous, extreme fiscal and
monetary stimulus.
Gold since bottoming, is now up and (up BIG!) against
virtually all paper currencies, as global central
banks race to devalue their currencies to prop up their
export markets, and as the bankster-gangsters employ
both excessive fiscal and monetary stimulus:
Silver is looking especially interesting here, and could
be a coiled spring ready to bust a quick $2-$3 move if
this momentum continues into the new year...
Silver stocks also looking very interesting...
PAAS a leader here, has now reached parity/fair value with
the silver price, however stocks like SLW and HL are still
very, very cheap to the price of silver.
You may want to take profits on this rally on those stocks
that have closed the valuation gap, and let those who haven't
continue to run...
I've received a lot of questions about the US Dollar, and
the inflation/deflation debate, and how that relates to
trading the gold & silver stocks.
I'd like to get into a little more depth on this after the
holidays, but let me say this...
The "trade" has rarely, if ever been on "where we are now."
The "trade" has been on the future expectations of where we
will be in the future -- based on what the Fed & Central banks
are doing in response to where we are now.
The deflationist's missed the massive trade on inflation in
oil, energy, and precious metals that didn't peak until this
March thru September... and they've been pounding the deflation
drum for 2-3 years.
And now as we are seeing the "deflationary" forces (not
deflation) of the collapse of a speculative credit & asset
bubble... they are claiming a false victory - just as the
inflation trade is once again taking off as Central Banks
are engaging in mass monetary and fiscal stimulus.
But the inflationist's weren't much better, as they got the
most bullish this spring calling for $200 oil, and $2000 gold,
right at the top... and stayed bullish well into the
correction of this summer.
And if that's not enough, many of those who were calling
for a collapse of the US Dollar all the time it rallied
mechanically into the forced liquidation of the market
as a result of a "mechanical" demand for dollars to settle
dollar denominated debt... have now turned bullish on
the US Dollar, just as it's starting to roll over, and just
as the fundamentals of the Dollar are being destroyed by
reckless, and unprecedented fiscal and monetary
stimulus....which is pushing gold higher.
...whodathunkit?!?!
Mo later,
S.O.T.B.
PS: And how 'bout them Irish!
I know, I know... it was Hawaii.
But, it was also a bowl game VICTORY... and for N.D.
it's been a while <vbg>, and now Charlie Weiss can
live out the South Bend winter in alumni/fan base
purgatory vs. alumni/fan base hell. |
