Wednesday, November 28, 2012

11/28/12 Miners down

'Nuff said.

140 comments:

  1. Helicopter - I'd like to see not only the control system operate from brain control, I'd like to see the engine develop it's power that same way.

    Just think, a helicopter that uses no fossil fuel.

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    1. I bet this requires special talent to get off the ground?

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  2. 10yr @ 1.60% - So based on the principle of conservation of energy, why isn't all kinds of money flowing somewhere in reaction to this?

    QQQ - Failed to recapture the 50SMA but the Nov gap down remains open, as does the Sept. 24 gap down from $70.08

    Perhaps the two open gaps up will be addressed first?

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  3. AGO - Looks like they tried to run our stops first thing?

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    1. Okay, we closed the gap-down obligation.

      NSPH - Are we running out of sellers?

      This is more fun than a barrel of monkeys!

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  4. 2nd, what are the chances my AUMN bid under $3 gets filled?

    I'm really warming up to this mind control concept.

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    1. I don't want to upset David's Buddhist complacency, but I'd say 50/50.

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  5. lets see if this was a smart move...picked up small amounts of Z at $25.49 and $25.65.

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  6. Well if we're going to bounce it should be about here.

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  7. IRE sold out, will reload if it pulls back 5.60ish

    Z pop?

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    1. According to a 13G filing, Kenneth Griffin's hedge fund Citadel disclosed a 6.13%, or 1,588,436 share, stake in Zillow (Z:$26.68,00$1.35,005.33%) , up 258.75% from the 442,775 shares held at the end of the latest quarter ending September 30, 2012.
      Z shares are up 2.4% at $25.93.

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    2. See, now that's the right way to front-run, as opposed to using Seeking Alpha.

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    3. I keep waiting for TOF's 13G.

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  8. ANV is a gold stock that is acting well here was down about -4% and has turn around to flat

    long ANV

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  9. NSPH presentation day @ 12:30 ET. Let's hope the trading is better than the last time.

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  10. This feels just like the whipsaw we experienced in June, the good news is SPY just fulfilled it's gap up obligation although not yet the case for QQQ.

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  11. The real question today is how many different pictures will chicken have today!

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    1. ha. just noticed that. i guess 6.

      f*cking DECK!

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    2. Today's pictures are mental images automatically transferred through my prototype brainwave transfer device.

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  12. Beautiful clear day here today, sun casting long shadows through the forest of trees, the air is cool and crisp.

    I won't be able to remain indoors much longer.

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  13. Looks like buying the opening spike down was the trade to make.

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  14. http://www.objectivetrader.com/2012/11/sp500-1998-2000-pattern-scenarios-.html

    love this setup and it's basically exactly what some of us here are thinking. interesting that he sees this final thrust as the end of the bull market. i think we've mentioned this as well...possibly moving to 1,500 then falling to 1,100 which would mean a drop greater than 20% on a closing basis and therefore the end of the bull market. however, it will still put in higher lows and in my opinion continue the trend started in 2009 with wild swings but higher lows.

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    1. I vote for that kind of strange magic, especially the last part re: higher lows. Last I checked, the human race was expanding and migrating to cities from caves. There are a few hold-outs remaining and they're a stubborn lot.

      Hmm, just by chance I caught a documentary about hot farmland prices and noted that southern farmland is currently in catch up mode with midwestern prices. Any way to play that?

      I'm considerably more in a buying mood now since 2nd's intuition has swung to bullish mode, losing interest in looking for dips.

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    2. CP- I'm significantly less bullish this morning due to the sharp spike down. That took some of the bullish wind out of my sail.

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    3. I hate when that happens and I'm unable to take advantage of it. The sharp spike down would have worked better for me end of day. But a spike down followed by a quick reversal clears out much of the negative sentiment.

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  15. Revised outlook>

    Today's buyers will be severely tested as the indexes spike back down to and excced November 16 lows.

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  16. It's 14:30, where's our daily congressional commentary?

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  17. "2nd, what are the chances my AUMN bid under $3 gets filled?"

    I would say the chance of that happening is 0 after the Fed announces an unsterilized continuation to OpTwist on December 12. We have two weeks in the interim, but in order for AUMN to drop below $3 over the next two weeks, we need silver to come back down to $26 or below.

    But CP, why do you insist on loading up a complete AUMN position in one shot? Why not scale in gradually? In this way you'll be guaranteed to be in the game and at least make *some* money over the next two years, when AUMN rises to new highs above $28...

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    1. I've been planning on scaling in once the bottom is in, there's a chance silver could go to single digits and I wanna be prepared for it if it happens.

      Otherwise I'm happy just knowing your position will produce a nice fat yield if I miss the boat.

      Collectively, we can't lose.

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    2. It might not be with AUMN though, it might be PAL depending on the circumstances. I do have a preference toward AUMN as opposed to PAL minus my experience with APEX. At least I didn't belive the hype about PAL's Sleeping Giant mine, but now the problem involves their new gold mine that reminds me of a repeat.

      Thus, if PAL would just get themselves back to being a pure play rather than trying to be something they're not then my preferences might shift.

      Of course I have no idea how this will eventually turn out, gold and silver seem to dance to their own music more than I ever anticipated.

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  18. My buy limit order for 3000 shares of PNPFF was filled today at $0.9. That's my preferred way of building up a position -- if I can get it at a lower average cost, then I want to have MORE shares at that better price (that's reasonable, isn't it?), and the only way to achieve it is to scale in gradually.

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  19. Sold my HBM (Hudbay Mining) and put the bulk of the proceeds into Cabo Drilling (CBE on the TSX Venture or CBEEF). They are a mining services company who mainly drills holes for miners. Losing a bit of money in North America which is super-competitive, but making money in South America. Market cap is $7 million, debt is shrinking and manageable, have right-sized business for the market, trading a P/E of about 2 ex special-items. Takes away some of the metal-specific and project risks, limits downside, plus huge upside should mining be steady or grow.

    Only public US mining services company is Boart Longyear, but they are listed in Australia, even though they are based in Utah. They trade at a forward p/e of 7, so if smaller Cabo can get to 5, would be 150% upside.

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    1. By the way, i am scaling in as David suggests. I find it a better way to buy these smallcaps as well as the price is much more fickle and susceptible to large drops than a large cap.

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  20. RYPMX at the close. Betting the sharp spike down this morning washed out weak hands for the time being.

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  21. We did need this pullback in SLV -- last week was too much of an up week, and there was little room left for further advance.

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  22. "I don't want to upset David's Buddhist complacency, but I'd say 50/50 [for AUMN dropping below $3]."

    2nd, I am just wondering: do you see some special weakness in AUMN relative to the other miners (perhaps due to them raising $40M in cash on September 14 by expanding their float by 20% and selling those shares at $5.75), or do you also think there is a 50/50 chance that GDXJ drops below its May lows (perhaps due to a major market panic or gold/silver falling below their May/July lows)?

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    1. David- I don't follow AUMN, only the mining sector in general (and only in a very broad sense at that). When the sector sells off hard, it tends to offer a trading opportunity. Re my above comment, all I can is that the price action tells me a sub-$3 price is more than just a black swan event. The 52-wk low is 3.24. It's now at 3.84. Why would a drop below 3 seem unrealistic?

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  23. any of you guys see solar stocks today? fslr is officially breaking out...now up 140% from the lows. ANR and the coal stocks are setting up still...IRE ran up nicely today and is going to run much higher over time. there are so many of these bottoming charts its hard to keep track of them.

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    1. This supports my conclusion the bearishness is personal bias coming primarily from some centralized location, perhaps a cave or lair somewhere.

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    2. Grover Norquist more than likely, I think I read somewhere he's a grandson of Benedict Arnold.

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  24. SPY - Tomorrow this one bounces off 50SMA and closes the gap down, right?

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  25. holy shit look at the insider buying on WFR

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    1. Yeah, like AGCO except WFR's cap is considerably smaller.

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    2. How does a company named MEMC Electronic Materials end up with the stock symbol WFR?

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    3. Because they are and always have been totally focused on silicon wafers.

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    4. MEMC has been the McDonalds of silicon wafer production for a long time.

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  26. Does anyone have stats on the odds of gold prices snapping back the day following a -2% move?

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    1. I'll crunch the numbers and get back to you tomorrow this time.

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    2. Well, I'll try and might not be able but I'll have something interesting and perhaps useful by this time tomorrow regardless.

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    3. Classic non-committal reply. Pretty much what I say whenever I'm not really interested in attending an event.

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    4. Oh come on, some new/different perspective is better than nothing at all.

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  27. Man...all of these basing patterns have the same thing going for them: higher lows. If ANR can hold above the Sept/Oct lows then it's one helluva buy. MITK also looks like a bottoming pattern and the higher lows pattern holds in that one as well. GREK looks like it's going to put in a higher low...my best guess is it has one more nasty pullback maybe to the $11 area...then it's a huge multi year buy.

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  28. The sadistic play here is to run the indexes back to last week's highs, leaving investors who lost their positions at today's lows (the whoosh down ran a ton of sell stops this morning) in the dust.

    As soon as we're all primed for the Christmas rally, the market then retests the November 16 lows- for real this time.

    Then we rally to 1500+. Before diving to who knows where for an extended period of time.

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  29. Too much disbelief in today's V for the market to simply roll over tomorrow. It pulls back Friday at the earliest.

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  30. This market has become a parody of itself. It's almost as if the only way to trade its moves is to access the part of your brain last exercised when reading Alice in Wonderland.

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  31. Seeing a spat of insider selling now. I'm guessing tax related.

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  32. Listened to the NSPH presentation. Their getting better at them. New was C.Diff test should get approved soon, a little more clarity on the validation process at the hospitals, 20 sales reps by mid year, by end of 2013 all slides will be made in house. This is a big cost driver. Not answered, are they going to run out of cash!

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    1. Wonder what the chances are of customers second-sourcing these slides, is this where IP rights come into play?

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  33. "Does anyone have stats on the odds of gold prices snapping back the day following a -2% move?"

    Considering that silver was down less than gold today (which happens VERY rarely when gold sells off by more than 1 percent), I would say that tomorrow we have a nice up day for PMs, since the risk ON relationship was preserved today (silver outperforming gold).

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  34. Mark Mobius ‏@MarkMobius
    Today would have been the late Sir John Templeton’s 100th birthday. I recall some lessons that made him great. http://s.frk.com/Ys1lAm

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    1. This comment has been removed by the author.

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    2. Here's the direct link:

      http://mobius.blog.franklintempleton.com/2012/11/29/remembering-sir-john-templeton/?nicamp=other&nichn=markmobius&nismseg=twitter

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  35. 1415 resistance, large up day or yesterday's dip buyers are today's sellers?

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  36. NATI - Could be clear for takeoff, closed the gap up yesterday and closed green after hoisting the anchor.

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  37. INTC - She can be had for less than $20 bucks this morning.

    Love you long time!

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  38. AMD - Will this one rise to the occasion, or is this chart room destined to become another artificial reef?

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  39. 2nd - So far, the stats appear to indicate a better than 50% probability.

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    1. Although, initial figures for palladium are considerably more impressive.

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  40. GS now on the RIMM choo-choo train.

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  41. ESRX let go all, mkt trading lethargic

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  42. CP- Unless I'm wrong, the slides are in the test cartridge. I can't imagine how that could be bypassed.

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    1. Agreed, that was a silly question. The concern should involve placements and details of potential requirements for additional financial fortitude.

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  43. Took yesterday to set up the new black box. Much faster than the old HP box.

    More screen less info? LOL!

    INTC @ 19.70 partial. So far it looks like I should have gone large.

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    1. Good God they slammed that thing quick, must be something goin'(good?) on?

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    2. I'll just wait for the 5 min rsi to hit near zero.....

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    3. 5 min has more than expired!?!?!?!

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  44. Did you guys also miss REDF going under 2 bucks?

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    1. Noticed that too, was not entirely impressed with the event.

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  45. UNG right on its rising trend line off aug lows, should find support here

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    1. Once I found out she was cheating on me I never looked back...but it was fun!!

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    2. She must be of Mexican descent.

      Speaking of Mexican, HXM's gross margin is negative, that can't be good can it?

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  46. GS is bullish on RIMM? you know what that means right?

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    1. RIMM gets slammed, would be my guess.

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    2. We shoulda' just bought GS with a $9X handle with confidence in their ability to produce smoke and mirrors, it's just that we can anticipate they'll pull the same crap on their shareholders and they should be kept away from capital markets due to these dishonest shenanigans they pull.

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  47. I'm going with the premise that yesterday's dip buyers are today's sellers, no call for if they're right or not(acknowledge taking gains is the name of the end game) just my belief they're being silly and cute.

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    1. IE: yesterday's open lingers, I smell an GS operation.

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  48. AMD - Gap up baby, how much you wanna bet it fills soon, prolly before EOD?

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    1. Talk about no love, hard to believe these guys were forced to mortgage both the Western White house and the Austin campus.

      Wonder what the heck Jerry Sanders is up to these days, he must be pissed?

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  49. TBT - We've totally given up on attempting to short UST's, right?

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  50. SQNM - The gap down is nearly closed if not already, here's where it gets interesting.

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  51. Thanks Kyle, anyone who is a contraian should check out the brief video at the end of article.

    Reposting Kyle's link:

    http://mobius.blog.franklintempleton.com/2012/11/29/remembering-sir-john-templeton/?nicamp=other&nichn=markmobius&nismseg=twitter

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  52. I see that my prediction about today being an up day for GLD/SLV has worked out perfectly. :) It is indeed rare for SLV to be down less than GLD during a big down day for gold, and that indicates a clear risk ON environment...

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  53. And who was talking about a sell-off in the miners? The sell-off lasted for 2 months and ended on November 15. Since then we have entered a clear recover mode, with silver zooming up and outperforming gold (risk ON).

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  54. SAN DIEGO--(BUSINESS WIRE)-- Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/zillow/) today announced that a class action has been commenced in the United States District Court for the Western District of Washington on behalf of purchasers of Zillow, Inc. (Z:$26.42,00$0.02,000.08%) (“Zillow”) (Z:$26.42,00$0.02,000.08%) common stock during the period between February 15, 2012 and November 6, 2012 (the “Class Period”).

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    1. Western District of Washington? WTF, sounds rather vague and frivolous but whatever....

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  55. Thanks guys for supporting NSPH profusely, can you also see your way clear to adding at least $.06 on AGO's price tag for some elbow room?

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  56. "USPS once again allowing shipments of lithium ion batteries."

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  57. alright bought some of the scam penny stock that i had a while ago...long AMBS at $0.025-6. I honestly don't know much about the company other than they got a couple of grants from the Michael J. Fox Foundation but it's down about 70% from where it spiked up to. they do have Joseph Rubinfeld (co-founder of AMGN) on board and he said the following about the company's lead drug candidate:

    "I believe in MANF," said Dr. Rubinfeld, "I have reviewed a great number of technologies in my 45 year career in the biopharmaceutical field, and I believe that MANF could be one of the biggest successes that I have ever seen. The fundamental scientific premise of reducing protein misfolding is basic, yet very profound. The data, while early, demonstrates very clearly at the cellular level and in animals that MANF reduces apoptosis, improves cellular function, and restores behavioural deficits in a number of disease models, including Parkinson's, Stroke, Myocardial Infarction and Traumatic Brain Injury. These are all indications with very large markets and clear unmet medical need. I believe that if we are able to further de-risk MANF with positive toxicology studies and early clinical data, the Company's new orphan drug strategy could get MANF to market rather expeditiously. MANF has the commercial potential to become a blockbuster drug."

    good for a trade right around here in what appears to be panic selling.

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    1. I've read that but isn't he referring to MANF and not this Co.?

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    2. honestly i'm not sure but they recently won a patent case in europe on their rights to MANF...the company that sued them also received a grant from MJFF.

      SUNNYVALE, Calif. , Nov. 20, 2012 /PRNewswire/ -- Amarantus BioSciences, Inc. (OTCQB: AMBS), a biotechnology company developing new treatments and diagnostics for Parkinson's disease and Traumatic Brain Injury centered on its proprietary anti-apoptosis therapeutic protein MANF, today announced the Opposition Division of the European Patent Office upheld Amarantus Bioscience's European Patent relating to neurotrophic factor MANF, following opposition by rival Hermo Pharma OY of Finland. 

      The Opposition Division held that the Opponent's arguments did not prejudice the maintenance of the Patent as originally granted, with broad claims covering MANF and its derivatives.  The Opponent had not contested the validity of the Patent on the basis of novelty or inventive step, but had objected to the broad scope of the claims. However, after due consideration of comprehensive legal and technical oral submissions from both sides, the Opposition Division rejected the Opponent's arguments and upheld the claims without restriction. 

      "This is a highly significant decision for Amarantus, after an extended period of uncertainty," said Marc Wilkinson PhD, European Patent Attorney of UK firm Avidity IP, representing Amarantus.  "The Opposition Division's decision validates broad protection for MANF and derivatives across major European jurisdictions."

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  58. Just got my $285 cycling shorts...they better make me go REALLY fast!

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    1. I actually where baggy shorts over them. JB can hang in with the tight shit. I can't.

      BTW!!! JB just got a job today. Some software co. of course.

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    2. tush comfort

      your girls still playing soccer?

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    3. Oh yeah...Hailey is done until about March but Kendra plays almost year around now. Both are also doing Bball. Good stuff. Gives me something to do.

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  59. Do we really have to hear from Pelosi? I'm at least going to close my eyes.

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  60. I’ll be closing RYPMX end of day. Gold prices are up +0.6%, but miners aren’t responding (of course, miners also rose yesterday in response to a decline in spot gold prices). If I use GDX as a proxy for RYPMX, then the positions will close flat. I refuse to 'hope' for more tomorrow- it's 'one (day) and done.' Sure, I would have preferred to take it off the table at the open, but you all know the rules for mutual funds.

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    1. a few of their sp 500 funds both long and short 1x's and 2x's have twice a day pricing

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  61. MITK- Well, that was fun for a while today.

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  62. NSPH- Remember my last sale price was 2.95?

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  63. Buy side imbalance for the financials. Close should be OK.

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  64. This is interesting and if true should lift gold/silver in DEC.

    We have been bringing to everyone’s
    attention the fact that the most important monetary
    aggregate of them all… at least in our opinion… the Fed
    St. Louis’ adjusted monetary base has not grown at all in
    the course of the past year and one half. Despite the
    great wailing and gnashing of teeth on the part of the
    hard money advocates and the gold bugs about the Fed’s
    balance sheet exploding, it has not been… at least if we
    believe that the adjusted monetary base is relevant, and
    clearly we think it is. This we’ve deemed important.
    Yesterday, a friend… who shall remain anonymous for
    we always treat this sort of information anonymously
    unless we are told to do otherwise… wrote to tell us that
    the Fed has been buying mortgage backed securities on
    what is essentially a “when issued” basis and that those
    securities have not yet shown up on the Fed’s balance
    sheet. They shall begin doing so in mid-December, if our
    friend’s insights are correct. If that is true, then by late
    December we should see the adjusted base explode to
    the upside, with a correlative movement higher in gold
    prices as that becomes reality. We shall await mid-
    December’s data then with a heightened sense of
    interest.
    Via gartman

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    1. Gartman is confusing correlation with causality. The *cause* of the rise in gold & silver during Fed balance sheet expansion is not the *reports* produced indicating that expansion took place, but the cash injected into the system when the purchases are actually made. The Fed has been injecting $40B into the system since mid-September, and the effect of those injections is already fully priced in.

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  65. congrats to JB! although i still want to see what he came up with on that trading system.

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  66. huge reversal today in YOKU. i like that one a lot longer term.

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    1. earnings after close...revenues look strong but stock was selling off earlier. i don't see how these numbers can be interpreted as anything but awesome.

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  67. "From 8-K: $ZNGA Sites Will Be Governed Solely by $FB Standard Terms, Facebook to No Longer Be Prohibited from Developing Own Games"

    I'm guessing they got preferential treatment before?

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    1. God, just kick them in the teeth as they are staggering around...

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  68. Mark, send my congratulations to JB! Which company is he working for now? How does he like it?

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    1. I'll email you the Co. He starts in a few weeks...Right next door in Redwood City!

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  69. My bad about a rash comment about Gartman at 1:40pm. It appears that actual cash transfer takes place during the settlement rather than during purchase. Here is the info from http://en.wikipedia.org/wiki/Settlement_%28finance%29:

    "As part of performance on the delivery obligations entailed by the trade, settlement involves the delivery of securities and the corresponding payment."

    However, instead of speculating about the settlement date of MBS securities purchased by the Fed, Gartman should have done a little of his own research. That would have quickly led him to the NY Fed page, which contains all purchases made by the Fed and their corresponding settlement dates:

    http://www.newyorkfed.org/markets/ambs/ambs_schedule.html

    That web site shows that the NY Fed has indeed been buying around $40B of MBS per month on top of their planned reinvestment purchases. Moreover, it shows that of the $78B of MBS purchases made between 9/14/2012 and 10/11/2012, around $15B of purchases have not been settled yet, and of the $75B of MBS purchases made between 10/12/2012 and 11/13/2012, around $60B of purchases have not been settled yet.

    Most interestingly, the data shows that the earliest settlement date in December is 12/12/2012, and over the last two moths, a whooping $46B of purchases will settle on that day!

    So this implies that the QE3 money will start being injected into the system at the full rate of $40B only after 12/12/2012, and that will start with a HUGE jump in all risk assets on 12/12 or 12/13. So, folks, don't forget to load up on risk assets before 12/12! That will also coincide with a very likely Fed announcement of the unsterilized continuation to OpTwist, so it will be one hell of a day...

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