Thursday, February 26, 2015

Three morning reads

SPY and QQQ are still really looking like they're rolling over. RSIs hit 60-70 and $VIX is too low to get a meaningful advance, I think.

Meanwhile gold and silver have become exciting with China back in the market, though I want to see how they react to today's 10AM smackdown and the many more that obviously will come, this being PDAC weekend and all.

Oh, speaking of which, y'all make sure you give a big hello to Clive Johnson at PDAC for me, okay?

Anyway, here's some news:

Bonddad - wage stagnation is primarily occurring in manufacturing. But the right wingers who'll bitch about this are the people who caused it, with a 35-year war against the working class.

Humble Student of the Markets - buy Europe? He says no, and I agree, though I would say so because Europe has an iron-fisted penny-pinching contractionary austerian leadership that will ensure it remains in depression for decades. Good luck waiting for all that earnings growth! I would also suggest he don't go ex-Japan: Japan is breaking out. But it would certainly be interesting if China popped. - David Harquail says junior mining really, really sucks. I'd suggest he get off the "marginal trader"'s back:
Harquail lays much of the blame at the feet of mining executives and directors who catered too much to investors. Good miners know that commodity cycles come and go, so they time a mine’s development to catch at least a couple of higher price cycles during its expected lifespan.

But investors no longer have that kind of patience. Harquail said they’re interested only in the latest upswing, not the next one, and too many mining companies have high-graded their operations and focused on big-budget, high-volume, low-grade deposits.

“There’s been too much catering now to the marginal investor, which right now tends to be the traders and hedge funds that only invest for the nanosecond,” Harquail said.
What, so Harquail thinks we're supposed to be patient and let companies grow, and not trade in and out? Please explain how the fuck that is supposed to make us money, using the example of B2Gold where every single person who bought the stock since August 2010 is now underwater.

Fuck you, Harquail: I'm not going to be patient with any of these fucks. I'm not even going to "be patient" with FNV: I can buy SPY and do just as well over the past two years without any exposure to PM volatility.

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