BullMarketRun.com

Visit the BMR comments section throughout the day for updates and helpful information!

1. Gold has traded between $1,496 and $1,505 so far today…as of 7:00 am Pacific, bullion is off $4 an ounce at $1,503…Silver is 8 cents lower at $17.06 with key resistance in the $17.20’s…the Gold-Silver ratio appears to have peaked recently, a technical development that is very bullish for Silver which should start to outpace Gold as both metals continue their primary uptrends…Nickel has retreated 5 cents to $7.16 while Copper and Zinc are both up slightly at $2.59 and $1.02, respectively…Cobalt is steady at $14.29…Crude Oil has pushed 86 cents higher to $56.99 while the U.S. Dollar Index is flat at 98.17…minutes from the Federal Open Market Committee’s most recent meeting in July – when the U.S. central bank cut interest rates for the first time in a decade, by a quarter of a percentage point – are due shortly at 11:00 am Pacific…government bonds aren’t the only instruments producing negative yields these days…various estimates of sovereign debt in that category put the total around $16 trillion, a number that has been escalating just recently as part of a longer-term trend while central banks drive interest rates to zero and below…negative-yielding corporate debt, though, is a relatively new thing, rising from just $20 billion in January to pass the $1 trillion mark recently, according to Jim Bianco, founder of Bianco Research…

2. President Trump says he had to confront China over trade even if it caused some short-term harm to the U.S. economy because Beijing had been cheating Washington for decades…“Somebody had to take China on,” Trump told reporters during a White House visit yesterday by Romanian President Klaus Iohannis, when asked about wide-ranging tariffs he has imposed on imports from China…“This is something that had to be done.  The only difference is I am doing it.  China has been ripping this country off for 25 years, for longer than that and it’s about time whether it’s good for our country or bad for our country short term.  Long term it’s imperative that somebody does this,” he said…meanwhile, Bank of America CEO Brian Moynihan is not worried about a potential U.S. economic slowdown, saying the American consumer is still in a strong place and can keep the economy growing…“The underlying consumer is doing well and making more money.  More importantly, they’re spending more money,” Moynihan stated on CNBC’s “Squawk Box” this morning…he added that the bank’s consumer base has spent $2 trillion this year, a 5.9% increase from the same period last year…“The U.S. consumer continues to spend and that will keep the U.S. economy in good shape”…

3. What is this all about?…in a highly unusual move, the Trudeau government has given away – gifted! – a $39 million stake in a B.C. coal terminal to 2 First Nations communities…yes, Trudeau has literally given away for free a 10% state in a taxpayer-owned asset to First Nations…the Canada Development Investment Corporation (CDEV) announced in July that it had transferred this stake in the publicly-owned Ridley Terminals facility to the Lax Kw’alaams Band and the Metlakatla First Nation, whose people reside near Prince Rupert on the northern B.C. coast…it has now been confirmed there was “no payment associated with that transfer”, according to a report in this morning’s National Post…the free gift comes after the 2 Indigenous groups were set to be major beneficiaries of an LNG project that has since been scrapped…

4. Great Bear Resources (GBR, TSX-V) has intersected more high-grade Gold in the Hinge and Dixie Limb zones at its 100%-owned Dixie Project in the Red Lake District…a new steeply plunging high-grade sub-zone has been discovered to the west of, and above, most previous drilling in the Hinge Zone…results include 30.8 g/t Au over 2.50 m within a broader zone of 7.4 g/t over 13.2 m, at only 68 m vertical depth…the new Hinge Zone sub-zone was also tested to approximately 140 m vertical depth, where assays returned 20.4 g/t Au over 2.2 m, within a wide interval of 2.1 g/t over 29.8 m…Gold-bearing quartz veins are strongly developed adjacent to a newly defined sediment contact within the same high-iron tholeiitic pillow basalt that hosts the original Hinge Zone discovery…meanwhile, the latest Dixie Limb drill results include 21.5 g/t Au over 2.35 m within a broader interval of 9.7 g/t over 5.60 m…drilling continues to encounter high-grade Gold intervals near the predicted intersections of Hinge-Zone style Gold-bearing veins with the Dixie Limb contact…broad intervals of low to moderate Gold grades are also present at all locations drilled…President and CEO Chris Taylor commented, “The 1-year anniversary of our Hinge Zone discovery is marked by the discovery of a new shallow high-grade Gold zone located west of, and above, the majority of our Hinge drilling to-date.  Concurrently, high-grade Gold continues to be drilled at predicted structural intersections in the Dixie Limb.  Presently, all 3 drill rigs are deployed at various targets along the LP Fault.  It would have been difficult to imagine last summer just how much progress we would make in only one year.  The most exciting aspect of the Dixie project is that the pace of discovery has continued to accelerate, and we look forward to what our fully-funded drill campaign will continue to yield through 2019 and 2020“…GBR is off 2 pennies at $5.39 as of 7:00 am Pacific…

7. New powers that allow police to charge drivers based on THC levels in the blood aren’t being used much, according to provincial data…the RCMP’s national forensic labs had anticipated a large spike in impaired driving blood toxicology work after pot was legalized, but so far it has failed to materialize…the number of samples sent in has been a quarter of what was expected, according to an article in this morning’s National Post…the new charges took effect more than a year ago and are expected to be heavily litigated due to the unsettled science around THC blood levels and impairment…however, there are no known court decisions on this yet, and the slow pace of charges means it may be a while until their constitutionality is determined…police do not need to rely on blood tests to lay a drug-impaired driving charge…they can instead have a drug recognition expert evaluate the driver, and use urine samples as supporting evidence…however, the new charges, called blood drug concentration offences, make it much easier to prove the offence – as long as police can get a blood sample within 2 hours of driving and have it analyzed…

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Visit the BMR comments section throughout the day for updates and helpful information!

1. Gold has traded between $1,494 and $1,509 so far today…as of 7:00 am Pacific, bullion is up $9 an ounce at $1,504…the Fed’s minutes from its July policy meeting are due tomorrow with investors also keeping a close eye on the central bank’s Jackson Hole seminar and this weekend’s Group of 7 summit…inflows into Gold ETFs are being greatly eclipsed by the inflows into Silver ETFs…the Silver ETFs tracked by Bloomberg increased their holdings by 687 tons last week alone, with holdings surging “from one record high to the next,” Commerzbank noted…Silver has climbed 25 cents to $17.09 and could be starting a trend of outperformance vs. Gold through the balance of 2019…nearest Fib. resistance for Silver is in the $17.20’s – that’s the key area to watch…Nickel has added another 5 cents to $7.29 while Copper and Zinc are both down slightly at $2.59 and $1.01, respectively…Crude Oil has slipped 91 cents a barrel to $55.30 while the U.S. Dollar Index is up slightly at 98.41…traders see about an 83.8% chance of a 25 basis-point interest rate cut by the Fed in September and a 10% chance of a 50 basis-point cut…SNC-Lavalin (SNC, TSX) has been reduced to junk status by S&P Global Ratings, the latest blow for the Canadian engineering firm at the centre of a controversy that’s ensnared Prime Minister Trudeau…S&P cut the Montreal-based company’s credit rating by 1 level to BB+, the highest non-investment grade rating, according to a statement yesterday…the downgrade reflects SNC’s significant losses on lump-sum turnkey projects which it plans to exit when its current backlog is complete…does this come as surprise?…as Canadians prepare for an October election, a union (Unifor) representing 12,000 journalists and media workers in Canada has announced that it will run an aggressive anti-Conservative campaign asking voters to “think twice about supporting the Scheer agenda”…media bias in Canada is rampant…Statistics Canada reported this morning that manufacturing sales across the country fell 1.2% to $58 billion in June, led lower by a drop in the petroleum, coal and food sectors…sales were down in 16 of 21 industries…the only consolation is that those numbers weren’t quite as bad as expected…

2. Interesting data from JP Morgan’s quant guru regarding last Wednesday’s sell-off on Wall Street that the mainstream media was making such a fuss about…the unusual single-session moves in stocks and yields were merely driven by technical flows in an environment of poor liquidity, according to Marko Kolanovic, the bank’s global head of macro quantitative and derivatives strategy…“Despite fundamental risks, recent equity and bond moves were mostly technically-driven,” Kolanovic said in a note to clients this morning…“More than half of equity moves were driven by systematic rather than fundamental trading”…the strategist estimated that last Wednesday’s stock meltdown resulted from $75 billion in algorithmic selling…about half of it came from index option delta and gamma hedging, 20% from trend-following strategies, 15% from volatility targeting strategies and the remaining 15% from other products…he added that more than half of the move in interest rates, including the brief inversion of the 2–10 yield curve, was caused by “technical drivers” like hedging by banks…Kolanovic, who has a Ph.D. in theoretical physics, has correctly called some big market moves up and down the last 2 years, gaining him a following on Wall Street…he’s predicting that equities will continue their comeback from last week’s sell-off…

3. Unlike other base metals, demand for Nickel from the top consumer China has not dampened during the ongoing trade standoff with the United States…prices have been insulated from any weakness due to a variety of dynamics, from developments in Indonesia to a buoyant outlook from the stainless steel industry…significant stock accumulation by Chinese companies to supplement their own output is reflected in LME inventories as well…stocks at LME warehouses have plummeted to their lowest level since January 2013 with inventories shedding about 70% since they peaked in mid-2015 near the bottom of the bear cycle…Nickel’s bull market started in early 2016…meanwhile, in Indonesia, authorities are contemplating whether to move forward a ban on exports of unprocessed ore originally scheduled to begin in January 2022…this move is expected to exacerbate a supply shortage…as per government data, Indonesia now has 13 operating smelters with an operational capacity of 24.52 million tonnes that mostly produce Nickel pig iron…also, 22 more Nickel miners are being developed with an additional capacity of 46.33 million tonnes…China is investing heavily in that country…almost 70% of global Nickel is used for making stainless steel and most of it in China….demand for Nickel from the electric vehicle revolution is going to be a game-changer for the metal next decade…

6. Aben Resources (ABN, TSX-V) is under mild pressure in early trading after uninspiring initial results from ongoing 2019 drilling at its Forrest Kerr Project in the Eskay Camp…drill hole FK19–50, testing the downward extension of a mineralized horizon discovered in 2 drill holes last year, cut 11.6 g/t Au over 1 m within a broader interval of 61.7 m grading 0.46 g/t Au…meanwhile, FK19–46, drilled oblique to the main mineralized corridor at North Boundary to test for continuity of mineralization between recently discovered mineralization and historic high-grade Gold mineralization reported by Noranda in 1991, returned 12.4 g/t Au between 203 and 204 m with an overall average of 0.12 g/t Au over its entire length of 500.5 m…they need to do better…Aben has nonetheless decided to expand its budget for the program and intends to continue drilling into September…5000+m has now been completed in 10 holes, with numerous sample shipments now in the laboratory…

7. How could Canada do this to itself?…the Canadian energy sector is sinking to unprecedented depths, as an exodus of investors and foreign companies from the Oil patch continues, though Prime Minister Trudeau boasts about how he “stands up for Canadian jobs” (in his home province of Quebec) in trying to defend his actions in the SNC-Lavalin scandal…the downside in the Oil and gas sector in this country has accelerated dramatically in recent years under the anti-fossil fuel Trudeau regime, and multiple exploration and production companies have recently seen their stocks completely dislodge from Crude Oil prices and sink to record lows…the gap between Canadian energy stocks and Oil prices, based on the ratio of the S&P/TSX Capped Energy Index to WTI, has now widened to its largest ever, according to Bloomberg…“It’s just been a bloodbath, especially this year,” said Christopher Blumas at GlobeInvest Capital Management told the Globe and Mail…“There’s only so much pain people can take before they have to cut their losses”… without significant progress on expanding pipeline capacity, Oil and gas stocks could continue to be “dead money” for years, Blumas said…since 2014, the index comprising the Canadian energy industry has declined by 73%…the list of exploration and production companies hitting record-low share prices last week included ARC Resources, Baytex, TORC, Kelt Exploration, NuVista, Athabasca Oil and Pengrowth…to a significant extent, this is Canada’s self-inflicted wound due to politicians consumed by climate change extremism – an effective strategy for “progressives” to redesign an economy where government plays a much bigger role in our lives (the Democrats’ proposed “Green New Deal” in the U.S. says it all)…the more power a government accumulates, the more dangerous it becomes…results of “progressive” policies in terms of economic growth during the Trudeau reign have been poor, in sharp contrast to the performance of the Trump economy…

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Visit the BMR comments section throughout the day for updates and helpful information!

1. Gold has traded between $1,492 and $1,510 so far today…as of 7:00 am Pacific, bullion is off $16 an ounce at $1,497 as a recovery in equity markets and rising U.S. Treasury yields reduced some of the metal’s safe-haven appeal, prompting investors to lock in some profits after recent strength…Silver is 18 cents lower at $16.90…nearest Fib. resistance for Silver is in the $17.20’s – that’s the key area to watch…meanwhile, Silver ETF demand has reached a record high…Bloomberg Intelligence senior commodity strategist Mike McGlone points out, “The 10 week rate-of-change in Silver holdings at about 20% to August 15 is the sharpest gain since the height of the financial crisis in 1Q09.  That spike in Silver ETF inflows preceded the price launch to the 2011 high close of $48.44 an ounce”…Nickel has eased off 16 cents to $7.20…Copper is up 2 pennies at $2.61 while Zinc is steady at $1.02…Crude Oil has jumped more than $1 a barrel to $55.93 while the U.S. Dollar Index has added one-tenth of a point to 98.23…U.S. Commerce Secretary Wilbur Ross said this morning the U.S. government will extend a reprieve given to Huawei Technologies that permits the Chinese firm to buy supplies from U.S. companies so that it can service existing customers…meanwhile, China’s central bank unveiled a key interest rate reform over the weekend to help steer borrowing costs lower for companies and support a slowing economy…

2. How could Canada do this to itself?…the Canadian energy sector is sinking to unprecedented depths, as an exodus of investors and foreign companies from the Oil patch continues, though Prime Minister Trudeau boasts about how he “stands up for Canadian jobs” (in his home province of Quebec) in trying to defend his actions in the SNC-Lavalin (SNC, TSX) scandal…the downside in the Oil and gas sector in this country has accelerated dramatically in recent years under the anti-fossil fuel Trudeau regime, and multiple exploration and production companies have recently seen their stocks completely dislodge from Crude Oil prices and sink to record lows…the gap between Canadian energy stocks and Oil prices, based on the ratio of the S&P/TSX Capped Energy Index to WTI, has now widened to its largest ever, according to Bloomberg…“It’s just been a bloodbath, especially this year,” said Christopher Blumas at GlobeInvest Capital Management told the Globe and Mail…“There’s only so much pain people can take before they have to cut their losses”… without significant progress on expanding pipeline capacity, Oil and gas stocks could continue to be “dead money” for years, Blumas said…since 2014, the index comprising the Canadian energy industry has declined by 73%…the list of exploration and production companies hitting record-low share prices last week included ARC Resources, Baytex, TORC, Kelt Exploration, NuVista, Athabasca Oil and Pengrowth…to a significant extent, this is Canada’s self-inflicted wound due to politicians consumed by climate change extremism – an effective strategy for “progressives” to redesign an economy and increase the role of government…the results in terms of economic growth have been poor…

3. Federal Reserve chief Jerome Powell will speak at the Jackson Hole Economic Policy Symposium later this week, an event that is sure to garner a lot of market and media attention…the symposium, hosted by the Kansas Fed, has made markets move in the past as in 2010 when then chair Ben Bernanke used his opening remarks at the conference to signal a fresh round of stimulus…this year’s theme, Challenges for Monetary Policy, is a fitting one, as central banks around the world keep cutting rates in a bid to stir activity but as a mounting pile of negative-yielding debt – more than $16 trillion now – indicates concern over the state of the global economy…Powell soothed the Street in early January and June in opening remarks at events by signalling the Fed would act more accommodative, so it would be surprising not to see him do it again at Jackson Hole as early as Thursday when he delivers the opening address…

4. White House trade advisor Peter Navvaro disputes that the bond market flashed a recession signal last week, which spooked investors and sent equity markets tumbling mid-week…the yield on the benchmark 10-year Treasury note briefly fell below the 2-year rate on Wednesday (first time this has occurred in 12 years), a phenomenon known as yield curve inversion which is typically taken as a sign that a recession is on the horizon (starting an average of 22 months after an inversion)…“Technically, we did not have a yield curve inversion,” he said in an interview over the weekend…he called it a “flat curve” because the spread was too narrow…the yield on 10-year Treasuries dropped to 1.623% Wednesday, briefly below the 2-year rate of 1.634%…“An inverted yield curve requires a big spread between the short and long,” Navarro said, comments that were also echoed by the Fed’s James Bullard…“All we have had is a flat curve.  It’s a flat curve which is a very weak signal of any possibility”…he argues that the yield curve is actually sending a positive signal…he said foreign capital is coming into the bond market due to the strength of the Trump economy, which is bidding up bond prices on the long end and bidding down yields, leading to what he said is the flat curve…

5. 18% Copper over 18.86 m…Ivanhoe Mines’ (IVN, TSX) drilling in the central part of the Kamoa North Bonanza zone has returned another visually spectacular intersection of thick, ultra-high-grade Copper mineralization…while assays for the hole (DD1571) are pending, Niton XRF analysis on core from the hole returned Copper grades of 18% over 18.86 m, at a 2% Copper cut-off grade, beginning at a down-hole depth of 209 m…these XRF readings make this the highest-grade intersection ever drilled on the Kamoa-Kakula Project (the only downside, of course, is that it’s in the Congo)…while Ivanhoe cautions that XRF readings are not the same as laboratory assays and are not an estimate of resource grades prepared in accordance with NI-43–101, the 1,570 holes drilled to date at Kamoa-Kakula have featured a high degree of correlation between XRF readings and assay results and will be useful in confirming and shaping the next stage of the delineation drilling program…the new hole, DD1571, intersected the Bonanza Zone up dip and approximately 18 m north of the discovery drill hole DD1450 (13.05% Copper over 22.3 m of true thickness, also at a 2% Copper cut-off grade, drilled earlier this year)…the Kamoa North Bonanza Zone represents a new style of Copper mineralization at the project where massive to semi-massive chalcopyrite, bornite and chalcocite have locally replaced pyrite in a pyritic siltstone that lies immediately above the basal diamictite unit that typically hosts the Copper mineralization at Kamoa-Kakula…drilling has extended the strike length of the Kamoa North Bonanza Zone to at least 550 m, with a width of up to 60 m across strike…6 drill rigs are defining or extending the limits of the Kamoa North Bonanza Zone, which has an implied strike length of 2.7 km…IVN is up 9 cents at $3.76 as of 7:00 am Pacific, about 75 cents below its recent 52-week high last month…

7. What’s the purpose of a corporation?…the leaders of America’s biggest companies are chipping away at the long-held notion that corporate decision-making should revolve around what is best for shareholders and maximizing earnings…The Business Roundtable said today that it’s changing its statement of “the purpose of a corporation”…no longer should decisions be based solely on whether they will yield higher profits for shareholders, the group says…rather, corporate leaders should take into account “all stakeholders” – that is, employees, customers and society writ large…it is a major philosophical shift for the association, which counts the chief executives of dozens of the biggest U.S. companies as its members…the group, led by JP Morgan Chase & Co (JPM, NYSE) CEO James Dimon, is a powerful voice in Washington for U.S. business interests…The Business Roundtable’s old statement of purpose espoused economist Milton Friedman’s decades-old theory that companies’ only obligation is to maximize value for shareholders…“Each of our stakeholders is essential,” the new statement says…“We commit to deliver value to all of them, for the future success of our companies, our communities and our country”…

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Video: How This Innovative Junior Is Winning The “Battery Arms Race” In Northern Ontario

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Why Are These People Smiling? – Their Stock Has Tanked 80%!

Turbocharged Nickel

Commodity Check!

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A fabulously rich orebody, and what to make of another wild week in the markets?…