Thursday, June 12, 2008

Those Darned Speculators and Hecla Mining - HL

I have been watching Hecla Mining, ticker HL (chart above) for some time. We have had a significant shakeout for this precious metals producer. We look to be in an area of some support of consequence. We also have what looks to be a falling wedge developing which portends a bullish future. I am going to stick my toe in the water and get long an exploratory single unit here at $8.20 with a stop at $7.16 I know I need another position like I need a hole in my head but you must make hay while the sun is shining.

I was watching O'Reilly last night. He was railing against the speculators as he was discussing useless drivel with the infamous Dennis Kucinich whose C.V should be well known. They were bashing the oil companies and hyping the windfall profits fix. I will guarantee you this, if they come out with a windfall profits tax on the oil companies, (by the way Google among many other U.S. companies have much higher profit margins than the oil companies but why let facts get in the way of a good lynching), I can assure you we will reach Louise Yamada's target on crude much faster than even she anticipates.

And of Dr. Rober Hirsch's prediction of #12-15/gallon gasoline. Well, you can forget it and just quadruple that. And get ready for rationing and all the other attendant unpleasantness (to put it mildly) that goes with that.

The law of unintended consequences will be in full effect when the grandstanding invalids of Washington latch their claws into the windfall profits tax..... GUARANTEED !

Now if only I could get a 5000 gallon tank installed in my yard.
If the administration releases reserves from the SPR (Strategic Petroleum Reserve) it will be a gift ! Plan to take advantage of it and BUY CRUDE on the event. I know I will be !

I mentioned the other day about Mexico's falling oil production and citing Dr. Jeffrey Brown's work on that subject. If O'Reilly thinks we have an illegal immigration issue now, with Mexico rolling in dough from energy proceeds, wait to see what happens when Cantarell and hence Mexico's production goes into steep decline. Remember, oil revenues supply about40% of Mexico's government budget.

Good speculating to you all.

Open Positions:
Long 6 units Currencyshares Japanese Yen ticker FXY @ $88.55 stop at $91.40
Long 3 units Ultrashort Dow DXD@ $50.12 stops 2/1 at DIA $130.26/127.34
Long 2 units Ultrashort Financials SKF @ $103.90 stops at XLF $26.72/25.54
Long 1 unit Currencyshares Swiss Franc ticker FXF @ $96.25 stop at $93.82
Long 2 units Ultrashort Real Estate ticker SRS @ $88.80 stop at IYR $71.08
Long 1 unit US Gasoline Fund ticker UGA @ $60.35 stop at $60.92
Long 1 unit US Heating Oil Fund ticker UHN @ $58.00 stop at $60.87
Long 1 unit Ultrashort QQQ ticker QID @ $37.05 stop at QQQQ $52.24
Long 1 units Ultrashort S&P ticker SDS @ $57.20 stop at SPY $141.54
Long 2 units Frontier Oil ticker FTO @ $26.25 stop at $24.22
Long 1 unit Hecla Mining ticker HL @ $8.30 stop at $7.16
Short 1 units Daimler AG ticker DAI @ $86.20 stop at $82.48
Short 1 unit Brinker Int'al ticker EAT @ $21.25 stop at $22.44
Short 2 units Goldman Sachs ticker GS @ $191.53 stops at $184.43/180.76
Short 2 units Darden ticker DRI @ $36.35 stops at $36.37/$35.24
Short 2 units Lehman ticker LEH @ $43.70 stops at $36.27/$30.92
Short 2 units Deutsche Bank ticker DB @ $117.03 stops at $114.89/105.37
Short 2 units HSBC ticker HBC @ $83.23 stop at $86.78
Short 1 unit of Visa ticker V @ $86.25 stop at $91.17
Short 1 unit of Netflix ticker NFLX @ $31.10 stop at $34.64

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