Delojozafado

Trading Platinum and Palladium Ahead of the ETF Launch

Well this is all very interesting. Up until now I have refrained from buying the (LPLA.L), due to the additional brokerage fees involved. I have found the buying (AGQ) & (DGP) in partial positions actually works as it does for (TBT). Now we are warned by the pros that trading these double and triple leveraged funds are only for day traders because each time they turn in direction a great deal of equity is eaten up. After the last Fed meeting we saw the same spike in (TBT) we saw today. Some thing very dangerous is either going on with the basis for the US currency or the principle at risk in (TBT). So far if you have owned (TBT) since it was below $40 and added recently on dips below $43.50 you are looking pretty good. So far. Any way I just added another partial to my (PTM) position on Tuesday as platinum was knocked down hard. I managed to get those shares at $13.38. Not exactly at the bottom but a nice guess based on the action in the shares the previous day. Now (PTM) rallied back some today. I would not have to own this kind of stuff except that 65% of my portfolio is in investment grade corporate bonds. Now 90% of those are medium term out to '13 & a couple 15s. There is that 10% that is long term and so beaten down that I am just enjoying the decent coupons. I will have to follow this development of a platinum ETF if it gets legs. In the meantime I may just call my broker on any further "corrections" in the platinum price and pick up a couple partials of 400 and 300 of the (LPLA.L). The divergence between Platinum and Gold is still at a relatively bullish historical gap.

Then there are the rumblings about what Jethro Bodine once referred to as "some new kindah dollars". Back in his day he was surprised to find out about millions of dollars. That was when one of the Hunt Bros remarked on their losses in cornering the silver market. A billion here and a billion there and pretty soon you're talking about some real money. Now it is a Trillion here and a Trillion there etc..

The point at last, is now we hear of this thing called an "AMERO" ? An obscure bureaucrat in China grumbles and the (TLT) tumbles...What eventually happens when a great deal of the distressed debt finally defaults, the unemployment bennies run out from the jobs in the autos and their suppliers have yet to eliminate? Who will buy the ghost malls from Simon and Prologis as they morph into Ganeral & and Centro Properties? Paulson & Ben the Dollar Slayer said they envisioned the Frannie Mac s being preserved in their current structures. OOPs, like WHOOPs they then turned around and screwed the subordinated debt holders the preferred share holders. Based on the Baird driving Wachovia to less than a $ before the market came awake from that concussion and realized it was worth seven and BEN advising 2 years ago that the subprime mortgage slime creep was relatively well contained, how are we to believe this latest man behind the curtain act of stress testing banks. Now we actually see Timmy the "G" making his bones on the "Q". The only shoots that are credible at this stage are the Gold ,silver and platinum ones. Green shoots? Not even the money is entirely green these days. But then that is only the case in which the money is actually printed and not electronically created. This situation in the early phases so far makes the Wiemar Republic look like pikers.

Some ATM's are already featuring $50 bills as an option. It all creeps in this petty pace from day to day. The tale is told by a presumed idiot. Yet the (TBT) was a horse of a different color again on Wednesday as many took a peak behind the curtain and the ten year treasury "advanced" to over 3%. IF an (LQD) can manage a decent gain on a day when the Treasury's debt is being knocked back by a similar % then what happens to (LQD) if the S&P breaks through 750 when "they" sell in May and go away? The yield goes to 8%? Even as the share price keeps dropping?