hello pezz, sunday report: here is a bit of sunday fun. you may go to church. i certainly pray. and then we can both prey come monday morning.
as a pal had just noted in sidebar on friday night's action whereby, and i quote, "What happened yesterday, as seems world became convinced that no inflation and no money printing", i am in discussion with the friend, along with some others, my always-guiding lights in sometimes-darkness, and the one i look to for in steadfastness reinforcement, and my comrades in mineralization.
My friend told me something shocking, that he had been been paying for airplane tickets, school fees, grocery shopping, and such with hard-earned money!?
recalibrate / recommendation: we must not spend hard-earned money on such mundane everyday expenses and all to do with wives and kids. we most assuredly must embrace with market largess generated from market friction borne of zigs and zags, like i note below in my on-line trading journal with you.
a few weeks ago, a gold trading master discussed with me and imparted wisdom to me at the airport, noting that he trades gold, the physical, and only. i thought about the purity of what the master did, and admire him for that wisdom, for, after all, all that is known, knowable, unknown, and unkownable is encapsulated in the price of the one, elemental, primal, and true, the price of gold, every second of everyday. i.e. instead of deciding to go short the google-china situation or long the pfizer-obama equation, one could, in theory, just shuffle a bit between cash and gold or gold and cash ;0)
i made the point that i do not trade my physical gold at all, but do occasionally trade the paper, and very definitely stay more active on gdx and all its derivatives
it is fortunate that the dates of postings are marked on-line by auditable time stamping. i have been posting my trades since about 1999, as a discipline device, so that when i make mistakes, others can point out what was not obvious to me. i have colour coded the extraction hereunder, italic normal for opening positions, and italic bold for declaring victories.
i had established an enormous gdx position back in march of 2009, and as of friday night, i am finally out of the entire undertaking. here be journal of my adventure; i now hope to repeat my experience, should i be deserving.
Critical Question: where to now for gold and all its derivatives.
2009 03 19 Message 25506414
cabal of sabotage experts, troops of special ops, legions of field armies, and phalanx of occupation troops took massive positions on GDX hill, valley, entry, exit, town square, airfield, mayor's office, hospitals, schools, broadcasting stations, harbour, bus depot, and subway terminals, at average price of 36.82
2009 05 22 Message 25664444
(i) added to gdx @ 41.9492
(ii) shorted gdx july put strike 40 @ 2.35
i think the companies that constitute gdx will benefit from increased demand for their products by folks seeking salvation from maddened mob electorates.
and should people fail to seek sweet redemption in gold, they will fail.
2009 07 19 Message 25795426
(i) got notification of assignment of gold mining etf shares (gdx) at $40/shr for put options shorted here Message 25664444 at $2.35/shr, and am happy to have been burdened of the resultant gdx
(ii) i bought a load of physical gold panda 1 oz bullion coins (circa 2004) from some fellow i know who ran out of cash, at usd 929/oz
2009 10 02 Message 25989982
(i) i sold a lot of covered call contracts gold miner etf (gdx) december strike usd 43 @ usd 3.50+, thus committing 65% of my gdx holdings to a bearish wager, and had the proceeds placed on usd call deposit, believing that while the usd is worth-less, it is not worthless, at least not yet, and certainly not before onset of 2010;
will use the newly generated cash to offset obligations to do with renovation of the beachside rental's renovation, so that i can engage with more gold out of the eventual rental flow.
2010 10 20 Message 26034296
in keeping with this earlier trade Message 25989982 , i
(i) shorted a lot of gdx dec covered call strike 48 @ 3.00
(ii) shorted a lot of gdx march covered call strike 50 @ 4.30
(iii) sold a bunch of gdx at 47.51
(iv) still have a whole lot of tranches of gdx to either sell outright, or issue calls upon, and have full phalanx of certificate gold to unload on whole lot of someones at some juncture opportune
i figure i should get a bit longer on us dollar and slightly shorter on everything else, before it becomes again fashionable.
2009 12 18 Message 26188679
Just a few book-keeping chores of the score-keeping sort, to count blessings and track bounties, in addition to the earlier counting Message 26186238 of blessings
(i) This trade 2009 10 02 Message 25989982 <<i sold a lot of covered call contracts gold miner etf (gdx) december strike usd 43 @ usd 3.50+, thus committing 65% of my gdx holdings to a bearish wager, and had the proceeds placed on usd call deposit, believing that while the usd is worth-less, it is not worthless, at least not yet, and certainly not before onset of 2010>> …
… is now closed with 65% of my gdx called away at 43. Together with the 3.50 call premium earlier collected, altogether a fair trade, and now I am positioned to short puts, massively, at an opportune moment;
(ii) This trade 2009 10 20 Message 26034296 <<(i) shorted a lot of gdx dec covered call strike 48 @ 3.00 …
(iii) sold a bunch of gdx at 47.51 … a bit longer on us dollar and slightly shorter on everything else, before it becomes again fashionable>> …
… is partly closed, with me booking the 3/shr premium as obligation-free and someone else booking a loss. This is altogether a more fair trade than above (i) while also serve to enhance the overall result of above (i) more favorable, in my direction, and thus fairer.
(iii) Again this trade 2009 10 20 Message 26034296 , part two <<(ii) shorted a lot of gdx march covered call strike 50 @ 4.30>> …
… we must wait and shall see whether and how I am to be rewarded.
(iv) The good things about closure are (i) one get to do the deed again, (ii) in better psychology than before.
Ideally, gdx drops to 43 at some juncture before mid-march, allowing me to short some puts at rich premium take, exit the calls at profitable turn. Then I can reload a series of trades to harness the energy of the market place once again, and also setting traps here and laying mines there so that some straggler in the unreal tournament is excused from the last man standing game.
Oh, and yes, hopefully the dollar also ramps, ramps, and ramps some more, to soften up the positions that must be engaged with, captured, held, to better wait for the … eh, I best stop and not get too graphic.
(v) Once the underpinning premise is discerned correctly, the rewards just keeps rolling in, as one harness the energy of the market to and exchange fro, in alignment with the force, choreographed like one of those gravity-defying unreal tournament warriors of last man standing gaming, fluid motioned, beautiful, cart wheeling, spinning mid-air, scoring :0)
I best stop, else I would be punished, for I am fearful of the scriptures, all of them, and fear is healthy, panic is rational, terror is delicious :0)
2010 01 19 Message 26255592
(i) shorted covered call options on gold miner etf (gdx) finance.yahoo.com (march, strike 50) @ 1.81, for i need some funding for sustenance, including but not limited to food, drinks, utilities, education, gas, entertainment, airplane ticket, maid services, starbucks mint mocha, lessons for skating, kung fu, piano, gymnastics, ballet, and the list goes on and on
2010 02 05 Message 26301660
(i) closed my earlier Message 26255592 shorted march gdx calls strike 50 @ 0.44, recognizing a well deserved and healthy profit of 1.81 less 0.44 over 18 days
(ii) opened with shorted march gdx puts strike 40 @ 2.12
2010 02 09 Message 26308743
shorted gdx march strike 42 puts mentioned earlier Message 26308657 were executed at 2.59
2010 02 19 Message 26331926
closed earlier Message 26301660 shorted gdx march put strike 40 @ 0.61/shr, making a wopper
2010 02 19 Message 26331834
just shorted covered calls on gdx march 44 at 2.26 - 2.27
2010 03 20 Message 26398546
(i) this trade Message 26308743 <<the shorted gdx march strike 42 puts ... executed at 2.59>> expired worthless on my worth-less counterparty, a good happening; and
(ii) this trade Message 26331834 <<shorted covered calls on gdx march 44 at 2.26 - 2.27>> enabled me to shake off my gdx long position at 44, booking the 2.26 premium as unencumbered proceeds, adding to the 44 taking, when gdx itself closed at 45.31; i.e. i can buy back at 45.31 what i sold at 46.26, or just short more puts as in part (i) of the program, as i know have more capacity, being less encumbered, so, another good happening.
i figure on shorting gdx puts at some juncture in the coming week, since i really should have some gdx in inventory, or build up some more well deserved gains to buy food, pay tuition, invite friends out, take a holiday, or help boost capacity to short some gdx calls.
wall street types try to make speculation seem like investment, when all it be is a computer game, and an easy one at that. on-line unreal tournament last man standing death match is a much more challenging game.
p.s. we must approach each serious and material trade as we would a campaign, comprised of many battles, but all serving the same full-on end purpose, until the counterparty is truly less, i suggest |
