New purchases

Adding to long term long positions, both good dividend yielders.

Added 200 shares of Intel (INTC) to the existing 100, @ $20.

Added 100 shares of Norfolk Southern (NSC) @ $66.

Looking to make a splash with MOS or MON if the rally continues tomorrow.

Japanese economy in freefall

And so is the Yen. Yen making all time highs against the dollar, now below 77. Amazing. This is the final throws before the epic yen collapse. The yen, very soon, will be the short of a lifetime. Just not yet.

Incidentally, all foreign exchange desks are going to BLOW UP over this, which could cause additional liquidations from margin.

Buy when there is blood in the streets

Bought 200 MSCI Japan ETF (EWJ) shares @ $9.36. Bought 100 Potash (POT) shares @ $53.20. Bought 100 Freeport-Mcmoran (FCX) shares @ $48. Bought 300 Yamana Gold (AUY) @ $12.05

Inverse H&S on the Junior Gold Miners (GDXJ)

The Junior Gold Miners appear to have carved out a nice inverted Head & Shoulders pattern on the daily chart, with the neckline at roughly 40 and the head at 33. This would indicate a pattern completion around $47, or roughly 20% higher from today's close.

Shine Shine on me Silver

I've heard all the talk that "Silver is in a bubble". I've also heard all of the J.P. Morgan silver short conspiracy theories. The reality is, Silver is in backwardation, and that backwardation is growing steeper every day. This is a classic supply/demand story in the short term, and ultra-bullish for price. Originally I had pegged $35 as my target for $SILVER this year -- I think we may have to up that to $40. Will $SILVER come back to life after that? Probably, but I wouldn't be shorting it here. Try to find a 100oz or 1000oz bar for delivery -- let me know how that works out for you.

To quickly address the J.P. Morgan Short issue -- If JPM is really short, they are probably short in the OTC market against some other big counterparty (producer, other bank). In fact, they may actually be LONG in COMEX as a hedge to their OTC short position.

Taking another look at Intel

Although highlighted favorably in Barron's over the weekend, Intel (INTC) has been dead money for 10 years. I own it already because it is a steady dividend payer (3.3%) with growth in revenues of about 25% over the past 10 years, and it sells for a 10.5 P/E.

To accumulate more of the stock, it would take a compelling fundamental or technical reason. One appeared today -- what seems to be an inverse H&S with a neckline @ $22 and the head at $17.5. This would put the target price close to $27.

To see the INTC Stock Chart with the inverse H&S, Click here

If we see a breakout above $23, it might be time to load up the truck.

Lightening up my spec commodity longs

Sold Monsanto (MON) @ $73 ($54.59 cost basis) for 33.7% gain
Sold Mosaic (MOS) @ $85 ($73.5 cost basis) for 15.6% gain
Sold Oil Service HOLDRs (OIH) @ $164 ($144 cost basis) for a 13.8% gain