Check back later this morning for today’s Morning Musings.
1. Gold continues to try to stabilize above important support at $1,130…bullion has traded between $1,132 and $1,138 so far today and is up $2 an ounce at $1,134 as of 7:00 am Pacific…
2. Gold is struggling but Oil is on track for its best December in 6 years as a new 14-year high for the U.S. Dollar Index has fallen to dampen bullish spirits…WTI is up 16 cents at $53.46 as of 7:00 am Pacific…the Dollar Index has backed off nearly half a point to 102.80 after approaching resistance at 104 yesterday…
3. Palladium remains the best performing precious metal this quarter with a drop of just 8% compared with a 14% drop in Gold prices and an 11% retreat in Platinum…Palladium is the “fundamental favorite” precious metal in 2017, according to Citi Research…the bank looks for Palladium prices to average $685 an ounce in the 4th quarter, rising throughout the course of next year to average $715 in 2017…
4. The Dow closed at its 26th record high of the year yesterday (the 17th since the election) as it came within just 13 points of the magic 20,000 level…it’s off 19 points at 19,956 as of 7:00 am Pacific…the Venture is flat at 717…
5. Pioneering Technology (PTE, TSX-V) has hit a new multi-year high of $1.13 during the first 30 minutes of trading today, pushing above resistance at $1.09…the company has recorded 6 consecutive quarters of profitability…Radient Technologies (RTI, TSX-V) remains one of the Venture’s volume leaders, up another 6 cents at 53 cents through the first 30 minutes of trading…
6. Lion One Metals (LIO, TSX-V) released additional infill drill results this morning from its Tuvato Gold Project in Fiji…they included 4.05 m grading 12.3 g/t Au (Hole #407) and 2.4 m @ 24 g/t Au (hole #410)…drilling resumes in January…dewatering is now complete to approximately a third of the underground development and will continue over the Christmas period….further underground work in the New Year will include diamond drilling from the decline, detailed sampling and mapping, and exploitation of the mineralized ore zones…
7. U.S. economic confidence has surged to a new high since the Trump election victory…a Gallup poll shows the first positive double-digit index score since the inception of Gallup Daily tracking in 2008 and reflects a stark change in Americans’ confidence in the U.S. economy from the negative views they expressed in most weeks over the past 9 years…
Tsx Venture low that is as we continue to go downwards.
Comment by STEVEN1 — December 20, 2016 @ 7:27 am
John – silver chart .. monthly .. H&S pattern????
Jon – venture as a leading indicator is telling us we are screwed… comments??
Comment by Jeremy — December 20, 2016 @ 7:29 am
Jeremy, the sudden reversal in the Venture last week was a clue that Gold is headed lower, but keep in mind that the key Venture support zone is from 708 to the 660’s. You need to look back over the years and you’ll see that even during bull markets, the Venture has had some wild drops down to its rising 300-day SMA followed by the next phase of the bull cycle. That could easily happen again here. Gold needs a washout. Remember also that there’s much more to the Venture than just Gold—-other commodities are faring very well, including Oil and base metals, plus non-resource plays are also a source of strength.
Comment by Jon - BMR — December 20, 2016 @ 8:02 am
Agree Jon on the base metals side, unfortunately gold and silver look real weak right now and could be for a while. MMS looking real strong right now as their iron ore assets might be in play, picked up some VGN at .075 today, hopefully not much downside there, picked up some CEM at .11, was hoping NRN would give CLE some life but I think it’s pretty obvious that won’t happen now unfortunately.
Comment by Danny — December 20, 2016 @ 8:34 am
Trudeau in Vancouver today and I’m sure he’ll be met with plenty of protesters, Jon, you have your camera ready this time?
Comment by Laddy — December 20, 2016 @ 8:36 am
Unfortunately no public events planned, Laddy…he’s doing some media interviews with the Vancouver Sun (streamed live on Facebook), CKNW and News 1130…after 2 pipeline approvals that he really had no choice but to approve (of course he turned down Northern Gateaway), now the real hard work begins at making those projects succeed and we’ll see if he’s actually up to it from a leadership standpoint…it’ll be interesting to contrast Trump with Keystone and Trudeau with Trans Mountain…
Comment by Jon - BMR — December 20, 2016 @ 9:06 am
Yes I should have added lol to the end of that, agreed, it’s time now he showed that he is going to be hard nosed about this and show some leadership, just noticed that the major gold companies not really doing that bad intraday,maybe close to bottom and a reversal. Probably in early January.
Comment by Laddy — December 20, 2016 @ 9:24 am
Cruz Capital… no insider ownership .. WHY Jon was it one of BMR’s recommendations?? TIA
Comment by Jeremy — December 20, 2016 @ 9:53 am
Just read how our fearless fkn leader – sister golden hair – gives the fed’s union a 5.5% raise AND a 650 buck signing bonus… when are we gonna wake the fk up????????????????????????????????????????????????????
Comment by Jeremy — December 20, 2016 @ 9:55 am
Because the Cobalt space is going to heat up dramatically in 2017, Jeremy, and CUZ is well-positioned in the right area…as we warned, the stock would be dealing with a lot of free-trading paper around this time from a $2 million financing at the end of August…that needs to be digested and has helped create oversold conditions (buying opportunities) at the moment, though the final bottom may not come until 9-10 cents…it’s a speculative play on Cobalt in an area that should heat up in a big way…LIC and others are also in the area, so CUZ is not the only one we’ve pointed out…
Comment by Jon - BMR — December 20, 2016 @ 10:13 am
Jeremy, that’s 5.5% over 4 years.
Comment by Danny — December 20, 2016 @ 10:27 am
Jon – re venture.. yes its tax loss… but what if its more than that due to the general resource crap market?? just a consideration…
Jon – re Cruz… wish I would have known that b4 I bought at 60 pre-split..
shuda kept notes
Danny – thx.. not sure I feel better about it especially the signing bonus… man it is a really bad fkn money day!!!!!
also BLO . from Rav (CEO) ..
http://www.attn.com/stories/9972/reason-saliva-drug-testing-is-not-effective-for-marijuana
glad we have gun control….
Comment by Jeremy — December 20, 2016 @ 11:19 am
Jon – sorry … thanks for the guidance:)
Comment by Jeremy — December 20, 2016 @ 11:19 am