Hello Pezz, Today’s Report:
I confirm to you that this Message 19424061 <<i ordered 2 dollops of nem at 41.07 and 3 dollops of pal at 5.40 or better>> was executed flawlessly, so Energyplay’s PAL Message 19423006 may have been taken into my portfolio via third party, and Snowshoe’s NEM Message 19425256 could have been added to my collection.
As to me paying for Snowshoe’s Subaru Message 19425451 , I think perhaps not. I prefer to think of it as Snowshoe is financing Jay’s liquidation of borrowed and already worth-less USD, especially relative to Newmont, and more so if taking account of my soon to be augmented short position in Newmont put strike 45. In other words, Snowshoe may simply be buying soon to be worth-less USD with soon to be more precious NEM :0)
While I did help Energyplay in his effort to get liquid Message 19424686 <<Panic and Run>>, also in USD terms, I am also helping myself to his cheap but soon to be dear Palladium. I am buying Energyplay’s less precious PGM ore, to start hedging my larger than before exposure in Platinum, that most noble of PGM metals (Ok, excuse the scientific liberty; Rhodium may be even more precious). As I am unwilling to sell my platinum or platinum mines, and so I must do something to hedge the hedge, as KastelCo would say:0)
On my NEM and PAL buys, I am not remotely fussed if I bought at a temporarily high price, because, as I had consoled myself before, a bull market can correct all mistakes.
Did I forget to mention we are in a multi-year commodity bull market?
Besides, I think NEM and PAL are cheap, relative to USD, MSFT, GE, FNM, JPM, … and, yes, especially QCOM. I stand ready to buy more of both, as indicated by my outstanding short NEM put positions at USD 40 and 35 strikes.
I believe after 2003 is over and before 2005 starts, we will have opportunity to short NEM puts strike 45 and 50, and sell PAL for north of USD 10/shr.
Regarding this Message 19425336 <<Don't know why everybody is panicking here ...Justa normal pullback after the big gains>>
… maybe so, but perhaps not, else you would not have bought your NEM insurance ;0)
I mean, what kind of a world is it where the central banker of the global currency promises to print savers out of existence, the central banker of global savings, in between bites of sushi, swears he will further inflate a monetary regime that supports USD 1,300 melons, and the government of the global Hegemon is busy spending money it doesn’t have on things it doesn’t need to do acts that needs no doing, even as it simultaneously asks its creditors to stop loaning it money?
What kind of scheme is it where Argentina’s economic recovery depends on its largest trading partner’s health, and its largest trading partner is clear across the Pacific as opposed to simply due north?
What kind of environment is it where an overnight squiggle of relative currency values allows me to buy a fair chunk of NEM and PAL, and still leave my equity vs cash allocation lower than the night before?
I venture to guess that, through the TeoTwawKi process, we are in a rapidly changing world, a more beautiful world, and a world where most average investors do not understand the rules, and many do not even know there are rules.
This state of being and setup is perfect, beautiful, and probably will be magnificently rewarding, as long as we remember crisis is a partner, volatility a friend, and the lonely path the right way.
Chugs, Jay |
