I bought a trading position in gold this morning at $1184.30/oz (February 2015 futures). The final day of 2014 gold dump offered what I consider to be a highly attractive risk vs. reward swing trading entry point in the precious metal: Gold has just gotten through one of its worst periods of the year seasonally and is now… Continue Reading
At first sight, the following chart is pretty jaw dropping: WTI Crude Oil (spot) vs. XLE Thus far in the month of December WTI crude oil is down more than 22% while the XLE (SPDR Energy ETF) is up 1%! This tremendous outperformance by the large integrated energy companies that comprise the XLE (Chevron, Exxon… Continue Reading
It’s a bit of a tradition among market commentators to come up with a list of ‘surprises’ for the new year. Some of us like to combine both macro/geopolitical events with market events. I have decided to limit my 6 surprises to market events as that is my area of expertise and the primary focus of… Continue Reading
Gold posted an impressive one day gain on Friday and is once again closely gravitating to the $1200/oz level: The $1200 level holds significance for a number of reasons as we enter the final 3 trading sessions of 2014: The 2013 closing price for gold was $1204.80 – whenever a market is ending near the… Continue Reading
From the McClellan Report: “….the 2008-09 drop in stock prices saw an echo in the 2013 drop in gold prices, which has now had its further echo in 2014 for crude oil prices. There is a similarity in the way that investors panic out of their holdings in each, and that common physics/psychology shows up… Continue Reading
As we reach the climax of the holiday season, the Christmas cheer on Howe Street is a mere shadow of bull markets in years past. The mining industry and our weary investors have been delivered yet another lump of coal in our collective stockings. Not even some nice high value met coal or anthracite, but… Continue Reading
The Market Vectors Junior Gold Miners ETF (or GDXJ) is an ETF administered by Van Eck and created to replicate the Global Junior Gold Miners Index which is a basket of small-cap gold exploration, development and production companies. The GDXJ tries to maintain an average market cap of its holdings above $150 million. According to recent… Continue Reading
There is one stock in particular that caught my attention last week after displaying impressive strength following a ‘weak’ earnings report. Then yesterday it rallied aggressively and posted a highly significant chart pattern breakout. The stock is Canada’s favorite fallen angel, Blackberry (BBRY): The monthly chart shows how far BBRY shares fell after the company began to… Continue Reading
Good news out of Seabridge Gold (SEA.T) this morning: they have received a positive federal environmental assessment decision for the KSM project in British Columbia. The federal decision was consistent with the provinical assessment which was awarded at the end of July. The permit allows one of the biggest undeveloped gold deposits in the world… Continue Reading
Given a 50% drop in crude oil prices during the last 6 months you might expect a significant washout in net speculative length (# of long contracts minus number of short contracts of both large & small speculators) in crude oil futures. You would be wrong… The shocking fact is that not only has net speculative… Continue Reading
Gold enters the final ten days of 2014 in a very interesting, and far from clear, position. Some observations in no particular order: Gold in US dollar terms is down slightly less than 1% year to date while it has actually had a very good year when priced in other currencies There is a great deal… Continue Reading
Political Maneuvers Capture Headlines This Week – Zambia and Cuba This week was highlighted by a slew of political headlines from various jurisdictions related to policy shift or regulatory change, each having implications for it’s respective domestic mining sector. Zambia was the latest Nation to move to increase its revenue streams from domestic resources mining,… Continue Reading
African gold explorer Orca Gold (ORG.V) has named Hugh Stuart company CEO and president effective immediately. Mr. Stuart is one of the founders of Orca and was VP exploration. He has extensive experience in Africa where he helped Red Back Mining grow to an 18 million ounce gold resource. As of last reported financials Orca… Continue Reading
An excerpt from the latest Howard Marks gem (The Lessons of Oil): “Further, it’s hard for most people to understand the self-correcting aspects of economic events. A decline in the price of gasoline induces people to drive more, increasing the demand for oil. A decline in the price of oil negatively impacts the economics of… Continue Reading
Barrick Gold (ABX.T) announced this morning that operations at the Lumwana copper mine in Zambia will be suspended. The decision comes after the passing of new legislation that will increase the royalty rate from 6 to 20 percent. The new royalty legislation is effective January 1st, 2015 and eliminates corporate income tax but puts… Continue Reading
