Wednesday, January 28, 2015

1971 - So What's Changed ?

Rockets, moon shots
Spend it on the have nots
Money, we make it
'Fore we see it you take it

Oh, make me wanna holler
The way they do my life
Make me wanna holler
Way they do my life

This ain't livin', this ain't livin'
No, no, baby, this ain't livin'
No, no, no, no, no

Inflation, no chance
To increase finance
Bills piled up sky high
Send that boy off to die (Vietnam)

Oh, make me wanna holler
The way they do my life
Oh, make me wanna holler
The way they do my life

Hang ups, let downs
Bad breaks, set backs
Natural fact is, oh honey that
I can't pay my taxes

Oh, make me wanna holler
Throw up both my hands
Yeah, it makes me wanna holler
Throw up both my hands

Crime is increasing
Trigger happy policing
Panic is spreading
God knows where we're heading

Oh, make me wanna holler
Throw up both my hands
Yeah, it makes me wanna holler
Throw up both my hands

Mother, mother
Everybody thinks we're wrong
Who are they to judge us
Simply cause we wear our hair long

Well, It's gotten a lot worse as anyone who reads this blog is aware so I won't bore you with details.

Here's the tune, one of the best ever.

Due to popular demand, I have included Marvin's What's Goin On

Sunday, January 25, 2015

Wow. Just Wow.

Hubble creates an image of the Andromeda galaxy that is so high quality as to reveal each individual star in the galaxy.

Andromeda is 20 million light years away. One light year = 5.8 Trillion miles.

We can only hope there are no democrats or moslems there because in x billions of years, Andromeda will be merging with our galaxy.

Talk amongst yourselves.

Tuesday, January 20, 2015

Things I've Learned

It's all Bullshit

If it's not coming from friends, family, or sometimes coworkers who are afraid to lie to you because it might come back to haunt them, It Is All Bullshit.

All you need to know.  It's Bullshit. All of It.

Get some Critical Thinking Skills if you don't already have them.

Saturday, January 10, 2015

Possible Longer Term Investment Opportunity

This is the Gold Bugs Index (HUI) going back to 2002.  (Chart courtesy of Jeff Saut, Chief Investment Strategist at Raymond James) As seen in the chart and relative to Stock Chart Technical Analysis, a favorable risk to reward situation exists by going long the gold and/or gold miners.

Here is an audio version of the picture.

The best way to do that would be by buying either the GDX (Senior Miners basket) or GDXJ (Junior Miners basket) or GLD (Physical Gold) ETF.

The reason that risk to reward is favorable is because back around 2002 - 2003, the gold miners had a tough time getting above the Resistance level illustrated by the blue line.  Once above that level, the miners (and gold itself) enjoyed a healthy rally that lasted until late 2008, when the wheels fell off and the miners sold off to the point of kissing the prior resistance/support line before resuming the rally.  This was a great risk to reward level to buy because as long as the index stayed above the blue line, all was well.  If it falls below that line, you could sell reasonably close to your buy price and wait for further developments.

Once again, in 2014-2015 we are in the same situation.  The index has fallen back to the prior resistance line - Now classified as a Support level because this level was bought the last time, so buying now and holding as long as the index stays above the blue line may offer the same type of reward as seen from late 2008 through 2012.  Again favorable risk to reward means that if you were to buy into gold (GLD) or the miners (GDX, GDXJ) you could hold and ignore all the daily noise only selling if the HUI index falls below the blue line level.  Or more literally, buy at this level = 186-ish, and sell if this level doesn't hold -  risk of losing around 10%. If the level does hold, then within a couple years, you could reasonably expect the index to return to the 500+ level, or a 5 times gain (500%).

There really isn't anything else to say.  Only pay attention to the blue line level.  You can watch it here  Personally, I'd punt if this index falls below 148-ish.  Also be aware that if it does fall this far there will be a massive downdraft as trader types rush to the exits so it will be wise to be fast on your feet to hit the sell button on whatever gold related vehicle you're using.  ie. Start getting antsy around 150.

The important thing is to have fun and never risk more than you're willing to lose.

Update:  Now you can protect your profits and retain more of them if the trend reverses.
For example, say you bought GDX (Senior Gold Miners Basket) to play this game.  Now you can put a mental stop out if the GDX falls below say 21 (today's level).  In other words, you can start watching the trendline support instead of the last resort HUI support level.
Just bring up a chart of what you bought (GDX, GDXJ, GLD) and draw a line below the bottom of the upwardly mobile candlesticks and sell if the price falls below That line.  You'll at least end up with some jingle in your jeans if it all goes South.  Based on today, that price level would be about 21 bucks.  If the trend stays in place, just keep extending the line and keep the mental note to sell if it falls below and re-evaluate afterwards, smiling as you pocket some money and become one of those fabled "Profit takers".

Chart from

Wednesday, January 7, 2015