Thank You Sir ! May I have Another ?

Mr. Market gave premature bulls like me another whacking as the beefers played their favorite commodity manipulaltion in breaking a logical support level to run stops and create panic. But the early weakness came from telic selling in Europe, ["telic" means purposeful ] likely by hedge funds there liquidating dollar denominated stocks.

Some heavily leveraged hedge funds received margin calls and a county in Alabama defaulted on the speculative swaps. Shades of Long Term Capital Management and Orange county ! And some mortgage companies are defaulting on margin calls, too. That happened in 1998, too. And I read that home loan default rates are approaching 1985 levels. So this market is showing elements of several prior crises and not following any one model.

All this is part of the bottoming process which is ongoing. I still like the big banks and plan to buy more of their stocks soon. They can borrow from the Fed and are the strong institutions that will do well in the environment that will be created from this restructuring.

Yesterday I sold many miners and smaller energies like SU, MRO, PCU, FCX, VLO, BTU. I think the price increases on their commodities will soon end so they will have trouble rising enough for me to own them. I have kept DVN, CVX, RIG, DO and CCJ. Those have great prospects for deep water discoveries of new oil or service that drilling. CCJ is my uranium play.

I'm selling more silver today and have a lot more to sell provided the prices stay high. My gold & silver sales are now being transferred to the Alpha Fund so I have a lot more buying power. I plan to buy more of my big banks and on serious dips would add to the energy positions I kept.

PS: Did anyone notice that Wal-Mart raised its divdiend yesterday ?

Words of the Day - the "Per's"

"Peradventure" - adverb [$10] or noun (archaic)
Peradventure means (adv.) perhaps; (noun) uncertainty, chance, conjecture, doubt.
Sentence: Will Obama and Hillary peradventure create a unified ticket ? Nahhh.

"Perdurable" - adjective [$10]
Perdurable means very durable.
Sentence: The McCain candidacy has proven itself perdurable as it recovered from both near oblivion and liberal smears.

"Perfervid" - adjective [$10]
Perfervid means marked by overwrought or exaggerated emotion; excessively fervent.
Sentence: The perfervid commentary of the gold and commodity pundits might signal a topping area.

"Perforce" - adverb [$10]
Perforce means 1. by physical coercion; 2. by force of circumstances.
Sentence: The troop surge in Iraq pushed onto Bush by McCain seems perforce to be succeeding in stabilizing that country.