I want to bring your attention to Agnico Eagle ticker AEM a Canadian gold producer. We look to had experienced a double bottom which occurred right at long term trend line support. Missed that but we are now getting a correction back to the mid-point breakout. I am now long 1 unit of AGE here at $60.10 with a stop at $55.89
I want to tell you bluntly and matter of factly that Washington can attempt to do whatever they want if will only postpone the inevitable. Many will not want to hear this but we as a country have mismanaged our affairs public, corporate and personal. We have borrowed from tomorrow to pay for today. The scare tactics they are using to push this garbage legislation through are fair as I believe there is much economic hardship ahead. The employment, savings, and fiscal numbers all point to it. Did you see the unemployment numbers yesterday, the durable goods numbers, the housing numbers for KB this morning. Yup everything is bottoming.
Spending this money will not do a thing to resolve the massive unemployment and long overdue recession which is headed our way. Better to save this money which will be sorely needed when the government finally acknowledges where the unemployment rate truly is. (in my opinion closer to 10%, and others smarter than I think 12-14%). This spending program will create no jobs, no growth, nothing for the economy. At least they could build a bridge to no where and then we would at least have a bridge to show for it !
Some have suggested a massive public works infrastructure project for this type of money 7$00 billion which I would wholeheartedly support. Bridges, water and sewer infrastructure and most importantly mass transit. You think peak oil has disappeared due to all of this? Well, think again.
When you have a medical condition, the longer you delay treatment the worse it gets. We have been living under the polyannic delusion propagated by lying politicians and appointed officials that all is well, the economy is resilient and everything bad is contained. We have been under the hysterically funny impression that recessions have been abolished to the history books. We have been conditioned, like lab rats, that the federal government, via fiscal and monetary alchemy have the secret formula to maintain perpetual economic nirvana.
You can only put off paying the piper for so long. He never showed up for payment so we all thought he had forgotten about our obligations. Well, the piper has arrived and he is looking to be
paid, the problem is we don't have the money. I DO NOT WANT TO HAVE THIS HAPPEN, but just like a hurricane from mother nature there is nothing we can do about it. We must acknowledge that it is headed our way. We have to make preparations. Are you going to flee for safer ground, or act as if all is well.
A severe recession is coming no matter what this bill looks like or smells like. Throwing money down rat holes is what got us into this mess and this bill is no different. Funny how so many believe that more of the same, which is what got us into this mess, will somehow miraculously cure it. Absolutely stupefying in it's idiocy.
Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".
Long 2 units of Ultrashort S&P ticker SDS @ 61.75 stop at $57.69
Long 2 units of Ultrashort Dow ticker DXD @ $57.85 stop at $53.79
Long 1 unit of US Natural Gas Fund ticker UNG @ $ 35.70 stop at $31.89
Short 1 unit Int'l Bus Machines ticker IBM @ $129.05 stop at $126.36
Short 2 units of Apple ticker AAPL @ $178.05 stop at $177.76
Short 2 units Salesforce.com ticker CRM @ $56.05 stop at $60.62
Long 1 unit of Agnico Eagle ticker AEM $60.20 stop at $55.89
Long 2 units Hecla Mining ticker HL @ $5.20 stop at $3.89