Nice week, get ready for more...

Looking at today's prices, I'm glad I moved out of EPM (as it was approaching the overbought point around the RSI: 75) and picked up some AcuSphere (ACUS). ACUS has been beaten down lately, but they're getting their ducks in a row and should be coming back. The commodities have been pretty hot all this week, so one might expect profit taking next week. Probably a buying opportunity, for those that haven't made it into the market yet. Remember, allowing for for inflation adjustment, we should be seeing $2,000 gold these days. Picked up some more BLRV as well, as they're trimming costs while increasing production.

WooHoo! Half Percent Rate Cut!

Well, a lot of folks are breathing a sigh of relief tonight after the Fed's cut 50 basis points on both the Fed Funds rate as well as the Discount rate. This is going to be bearish on the Dollar, as folks will want to put their euros and yen or whatever in something that pays a better interest rate. Additionally, it will spike inflation, as costs for things outside of the US will now cost more, because of the lower Dollar. This will cause the price of gold to probably test and surpass the highs from back in the 80's.

It's less than 6 hours old and already Asian trading is sending it to a more than 25 year high, with energy to send it to all time highs and beyond. Gold hit the $870's where it topped out back in January 1980, and gold reached the $730's in May of last year. Some are calling for over $1000 an ounce in the long term, though others are calling for a correction to the upper $600 range.

I can't help but remember all the treasuries the Chinese were buying with all those dollars we give for their products. When they see the Dollars they're holding start to be worth less and less, I think they will start dumping their dollar denominated anythings and buying gold. Dumping Dollars will, in turn, make gold worth even more. I'm set in my gold stock (BLRV), just waiting for things to hit some peaks.

Short term buys, long term buys.

Got into some EPM again yesterday after selling off the DEEP. I know DEEP still has some upside to go, but the EPM was starting another spike and I wanted to get some while it was hot. It broke out above it's fifty day moving average, so it's a place to make a few bucks for the moment, and the next few days.

Looking at the weather http://www.kcra.com/wxmap/5426744/detail.html in the Atlantic, I see there's another storm forming east of the Windwards. That'll give natural gas another push to the upside, at least through the weekend.

It seems like the whole world is waiting for the Fed's meeting next week. Many things are going to swing depending on the if, when, and how much of the cut. We have the dollar at the lowest value it's held for the past few years, gold is approaching it's all time highs if it breaks thru it's last high point from a year and a half ago, and oil is just a day or two past it's all time high. I'm banking that they're going to drop rates by a quarter to half a point. If it's just a quarter point, we're probably going to see further cuts. If it is a half a point, we might not see any further cuts till next year.

I said it first!

I just heard Sue Herera on CNBC just say the exact same thing I did in my post on 4-Sept. She said the Fed would cut rates and the Market would drop, whether the cut was .25% or .5%, kind of like a catch-22... Almost my exact words. Are you reading my blog, Sue?

I thought I was wrong once...

...But I found out later I was right. - Seldom Seen Slim, The Monkey Wrench Gang by Edward Abby - Great book, IMHO.



I love patting myself on the back. It does tend to cramp up my arm after a while, so it's a good thing not to do too much. I hope you read my first post a few weeks ago and picked up some Gateway (GTW) when it was hovering around the $1.20 mark. It had a MACD crossover about the 16th and on the 17th, it touched $1.36. Hold it another week of so and on the 27th, the announcement they were being bought by Acer comes out. The stock hits $1.86 that day. Now if I had just bought some instead of just looking at it...



I did more than watch the shares of Superior Offshore (DEEP) the other day. I did get in to a few hundred shares at just over $11. It was nice watching them hit $12.48 interday, before retreating to $12.25 at the close. I see some more upside potential, possibly to around the $14 level.



Gold has just been on a rocket the past few days. The uncertainty over the liquidity in the credit market along with the housing bubble popping has made a lot of folks nervous. What with the fear of the American Consumer putting away their collective wallets, houses sitting on the market longer and longer, and the retail sales data starting to come in from the back to school season, we might be facing a lot of missed numbers in the retail and durable goods area pretty soon. The credit issues are also affecting the autos, as well as the consumer electronics market. Witness Apple's (APPL) dropping the price on the new Iphone just two months after the debut. Is there a miss in Apple's numbers coming too? Watch this space to see when to buy...

Back to gold though, it's looking hot for the next while. With the Central Banks injecting more money for liquidity, it's like putting the presses on overtime. Add to this the Syrians and Israel stirring things up, and the price of oil begins to rise. Can you say inflation? I knew you could. Just makes Bernake's job all that much harder. Buy (GLD) or mining stocks. I'm in (BLRV).

Bernake & Bush = Wonder Twins?

I saw one of the major papers the other day having a headline likening Bush and Bernake and their sub-prime bailout plans to the Wonder Twins. I sure hope they're not like that, because if I remember correctly, the Wonder Twins always got their butts kicked before the real superheros had to come in and clean up.

At any rate, possibly a lower one by this time next month, the Fed will definately be on the hot seat if they drop things to little or too far. The market has already priced in a cut to 4.5 to 5%. If the cut comes in at a quarter point, the market will frown at that not being enough and tank. If he cuts a half point, yet the banks don't start freeing up some money for folks, then the market will still tank. If he goes and cuts a full point, then things will probably tank anyway because if the Fed thinks things are that bad, then they probably are. Kind of like a catch-22.

It's been a couple of weeks since I posted here. Hey, it's Vacation Season. I sold off the EPM I had picked up at $2.25 for $2.40, just before it started dropping again. I picked up some BLRV at $.32 the same day. Today I watched gold break out on the top side, closing above $682 in New York and BLRV is at $.35. I'm going to hold on and even pick up some more if the chance comes around (read: if I sell something else and need to park the cash).

I see the hurricane season is starting to pick up in the Carib'. Looking back at a stock that IPO'd a couple of months ago, Superior Offshore (DEEP) made me a couple bucks in the week or so after the IPO. Since then it's fallen to nearly half it's value, bottoming last week at $10.10. I saw it had a MACD crossover heading up and also came up from it's RSI of 20. I bought some today just above $11.

Looking at possibilities, I have my eye on Netflix (NFLX), and Playboy (PLA). Netflix is getting into downloadable movies. The coming prevalance of DSL, FTTH, and really cheap storage (terabyte storage for a few hundred dollars), means that we'll be downloading everything from first run movies (probably directly from the studio's website) to live news. Netflix is positioning themselves early in this direction. I also have an eye on Playboy. Today my wife gets this catalog in the mail from this place called The Bunny Shop. Yep, you guessed it. Playboy Mansion tenants modeling revealing sweaters, lingere, and such. Why it they took this long to think about this, I don't know. I do know my wife would look great in some of the fashions (yeah, she's a hottie...), and they're not cheap. They might get a good bounce in the bottom line next reporting season.