With the ECB shifting to an über-dovish stance, and the possibility of the Fed hiking rates sooner than expected, the US dollar (USD) has suddenly become the most favored currency on the planet: Click to enlarge In fact, the last time the USD was as overbought as it is now was June 2010 when fears of a… Continue Reading

Nevada is the place where Newmont and Barrick made their names.  It is a place of very large gold operations that have been producing for decades and continue to provide these behemoth gold miners with baseline production and profits. It is estimated that Nevada produces 80% of the total US gold production. This morning, Nevada’s newest gold mine… Continue Reading

After shocking the majority of participants by declining for the first 8 months of 2014, long rates look to be headed higher once again: Click to enlarge  It looks like the long end of the interest rate curve put in an important low in yields at the end of August – A 3.50% yield on the… Continue Reading

Sentiment in the mining sector got a huge boost earlier this year when Sean Roosen’s Osisko Mining was the target of a bitter bidding war between Goldcorp, Yamana and Agnico Eagle which ultimately saw the latter two companies co-acquire Osisko for $3.9 billion in the largest mining M&A deal of the year (so far). This morning,… Continue Reading

The following chart of the CRB Index sums up what has been a very challenging past few months for commodities: Click to enlarge It is hard to say anything positive about the short term prospects for commodities other than they should put it in a tradable short term bottom at some point in the next few… Continue Reading

Scientifically curated top shelf material we are reading this morning……. WSJ – “Washington Trading Probe Broadens to Hedge Funds” The Reformed Broker – “The simplest yet most important fact” FT – “Apple’s big day didn’t turn me on” MercenaryTrader –  “Be True to Yourself” Advisor Perspectives – “For 90% of Americans: There Has Been No… Continue Reading

High-yield corporate debt has put in an ominous double-top and begun to move lower in aggressive fashion: Click to enlarge And this afternoon equities broke down from a 2-week topping formation in the S&P 500: Notice how realized volatility has nearly doubled from the late-August historic lows, meanwhile, volume has accelerated as price has broken… Continue Reading

The current market environment is certainly unique in many aspects, whether it be the unrelenting uptrend in US equities or the extremely low volatility across asset classes, this market is clearly a different animal than anything investors have seen before. Some of the recent action in West Texas Intermediate crude oil is yet another example of this… Continue Reading

This morning, Roxgold (ROG:TSXV), the gold company developing one of the highest margin deposits in the world, announced the discovery of a new high-grade vein at their Bagassi South satellite zone on their Yaramoko project. Bagassi South is located roughly 1.8km away from the 55 Zone which hosts their mining resource. Highlights from the QV1 and… Continue Reading

In mid-2011 a small group of natural resource entrepreneurs made a killing when they sold their European shale explorer to San Leon Energy for $139 million. That company was Realm Energy and was debuted at $0.10 per share in 2009.  Fast forward 2 years and they sold the company for the $1.30 per share in… Continue Reading

Every so often a favorite blogger of ours, War Tard, writes a tour de force post that becomes an absolute must read for anyone who would like to be informed about geopolitics. He just dropped another ‘bomb’ regarding the Sunni Islamic terror group known as ISIS – A few choice excerpts: “The pesky thing about the… Continue Reading

After reaching a relatively frothy net speculative long position of over 165,000 contracts as of the August 12th Commitments of Traders report (CoT), gold speculators have capitulated over the past three weeks by cutting their net long exposure by over 60,000 contracts – here are the last 3 CoT reports presented in chronological order: Click to… Continue Reading

Some quality material we have selected for your edification this morning….. Charlie Bilello – Slackonomics 101 Advisor Perspectives – 3 Things Worth Thinking About The Reformed Broker – 2015 Will Be the Year  of the Stockpicker! FT – Nato states to form coalition to fight ISIS CNBC – Why Goldman’s gold man recommends shorting gold

The most important charts of the day presented with concise commentary: Click to enlarge EUR/USD Daily Massive breakdown in the euro currency following the ECB’s decision to cut rates further and increase asset purchases Gold Miners (GDX) Daily GOOGL Daily  GOOGL continues to struggle  with an upside breakout from the ‘diamond’ pattern High-Yield Bonds (HYG)… Continue Reading

Unsurprisingly, Goldman Sachs’ head of commodities research, Jeffery Currie, told investors to short gold highlighting that the crises in Ukraine and Europe are supporting the price of gold but that the US Fed’s Policy shift would cause a sharp decline in the price of gold.  Sound familiar? Currie is calling for a +$200 per ounce price… Continue Reading