Gold has traded between $1,135 and $1,146 so far this morning…as of 8:45 am Pacific, bullion is up $12 an ounce at $1,146…Silver has surged 32 cents to $15.98…Copper is flat at $2.34…Crude Oil has climbed more than $2 a barrel to $48.36…Global Oil investments are set to be slashed by a staggering $130 billion this year, crimping supplies and ultimately boosting prices, OPEC’s chief said today, and he added that he was open to discuss the current Oil market turmoil with the United States…the remarks come as many members of OPEC have been running large deficits as they battle against American tight Oil…the U.S. Dollar Index has fallen one-fifth of a point to 95.50…dollar longs could get clobbered this quarter…
In a research note yesterday, analysts at Barclays said that recent short covering in Gold by hedge funds and money managers (through the week ending last Tuesday as per the latest COT report) has helped push speculative interest further away from extreme bearish positioning…however, there is still significant negative sentiment in the marketplace, they added, and that’s a good thing in our view…
“The managed money net long remains near the historical low even after the pull-back, with COMEX trading volumes also soft, indicating still negative sentiment towards Gold from investors,” the Barclays report stated…
Jonathan Butler, precious metals strategist at Mitsubishi, noted in a report yesterday that Gold gross longs are 76% off their record levels and gross shorts are 70% from their all-time highs…those dynamics create plenty of room for higher prices…
The U.S. trade deficit jumped sharply in August as exports fell to the lowest level in nearly 3 years (more bad news for Janet Yellen) while imports increased, led by a surge in shipments of cell phones from China…the Commerce Department reported this morning that the deficit increased 15.6% to $48.3 billion, the worst number since March…exports of goods and services dropped 2% to $185.1 billion, the lowest level since October 2012, while imports rose 1.2% to $233.4 billion…
Exports have been hurt by the rising value of the dollar, fueled of course by the Fed “talking” about hiking rates beginning last year but actually not doing it when they had a chance (they missed their “window” and are now losing credibility)…the higher dollar, the effects of which are really just starting to kick in based on one of the Fed’s own research reports, are making U.S. goods less competitive on overseas markets at a time of weaker economic growth in China and elsewhere…
Commodity Sector On The Rebound?
At BMR, we have our own TA specialist in John, who does amazing analytical work, but it’s interesting also to see what other respected technicians in the business are also saying…Kitco’s Jim Wyckoff had some interesting observations this morning. “There are ‘green shoots’ showing in a few markets that could be very early clues the raw commodity sector bust’ is coming to an end. Sugar, coffee and Silver prices have seen good price rallies just recently, to suggest those individual markets have bottomed out. The sideways price action in other commodity futures markets, such as sector leader Crude Oil, suggests the bears in those markets have become exhausted and price bottoms could also be in place.,” Jim concluded…
Gold, Oil May Benefit From New Russian Aggression
U.S. Presidential candidate Mitt Romney was 100% correct in 2012 when he stated Russia poses the greatest threat to U.S. national security…of course, at the time, he was mocked by President Obama in a nationally televised debate. “When you (Romney) were asked what’s the biggest geopolitical threat facing America, you said Russia, not al Qaeda. In the 1980‘s, they’re now calling to ask for their foreign policy back because, you know, the Cold War’s been over for 20 years,” Obama arrogantly and foolishly declared…oops…just more bad foreign policy judgement by this American President who also referred to ISIS as a “JV” team less than 2 years ago, and has even managed to fumble U.S. relations with its closest allies, Canada and Israel…
“The President’s naivete with regards to Russia and his faulty judgment about Russia’s intentions and objectives has led to a number of foreign policy challenges that we are facing,” Romney told Bob Schieffer on CBS’s Face The Nation…
Meanwhile, in its attempts to bolster the brutal Assad regime, Russia has targeted Syrian rebel groups backed by the CIA in a string of airstrikes running for days, leading the U.S. to conclude that it is an intentional effort by Moscow, according to American officials in a report carried by Fox News…Obama’s withdrawal of America from the world stage has created a power “vacuum” that Vladimir Putin has been more than eager to fill, triggering his bold moves into Ukraine and now the Middle East, especially since he views Obama as a very weak leader and of course a lame duck President with just 15 months left in office…
The world is more dangerous now than it has ever been, and it’ll be fascinating (if not scary) to see how this American President deals with that reality…a risk premium could easily build into both Gold and Oil as a result…
In today’s Morning Musings…
1. Updated chart for Equitas Resources (EQT, TSX-V) – what’s next after a breakout above the pennant…
2. Updated chart for Garibaldi Resources (GGI, TSX-V) – something big must be brewing at Grizzly Central…
3. Discovery Ventures (DVN, TSX-V) secures 100% ownership of the Max mine and mill facilities…
4. Integra Gold (ICG, TSX-V) on the move as drilling ramps up at Lamaque South…
5. Update on a health care stock worthy of our readers’ due diligence….
Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…
PRB looking very strong again today, great time to have $19 million in the bank account (more than 50 cents a share).
Comment by Jon - BMR — October 6, 2015 @ 9:45 am
great day for the venture.
Comment by tony T — October 6, 2015 @ 10:43 am
It’s starting to look a lot healthier, Tony. How it finishes the week will be critical. We’re in an environment of a U.S. dollar in a downtrend, at least for the short-term, perhaps the next several months. That could give the Venture a nice lift.
Comment by Jon - BMR — October 6, 2015 @ 10:55 am
So according to my scotia technical analysis, GGI has broken out of a head and shoulders bottom. They give it an intermediate price target of 14-15 cents. Just thought I’d pass it along.
Comment by tony T — October 6, 2015 @ 11:02 am
Anyone have updates on WRR? Are they still drilling??
Thanks!!
Comment by Jeff — October 6, 2015 @ 11:22 am
SRK – Strike Diamond Corp. Announces 10,000 Acre Expansion of Garland Camp Position
fscwire.com/newsrelease/strike-diamond-corp-announces-10000-acre-expansion-garland-camp-position
Map @ fscwire.com/sites/default/files/NR/989/8350_SRK10052015.jpg
Comment by Ryan Kalt — October 6, 2015 @ 11:38 am
strike diamond corp announce 10,000 acre expansion of garland camp position
Comment by kelly — October 6, 2015 @ 11:39 am
A theorie here for high grade gold at grizzly central, VI, Wolverine strait on line with grizzly central than pyrrhotite creek.
Comment by Martin — October 6, 2015 @ 12:18 pm
DVN had great news today. Look for it to move higher short term.
MSD keeps hitting new highs. Look for a strong breakout over the next week or so.
CRS.V had a nice power close today. I think it closed @.16. I think it challenges .20 his week.
EQT what a beauty.
Anyone notice the 7M cross on AAO @.04 today…..
Everyone should also keep an eye on ALY. I think it’s bottomed around here.
@BigRig_Trader
Cheers.
Comment by BigRig — October 6, 2015 @ 2:13 pm
Nice move up on the Venture today ,up 1.66% to close at 538 . Needs to get through the 560 resistance area. Both GGI and DBV up today and with all the promotin on GGI it’s understandable . Not sure why DBV would be attracting a few buyers maybe Chad Day came out of hiding long enough to get served.
Comment by Les — October 6, 2015 @ 2:48 pm
Les- I bought nore DBV today…….this Chris Day issue will come to an end and DBV will continue where it left of soon…..better to load up now while its quiet than to regret it later imo
Comment by D4 — October 6, 2015 @ 3:17 pm
EQT chart says near term resistance at 23 cents. All that can change depending on what happens on the ground. Hopefully news on their new targets soon and a drilling update, although rather see a halt and hit.
GGI broke the 10 cent resistance so either drilling has started or about to start is my guess. Hopefully they announce this week before long weekend.
Imagine if we get a halt on EQT going into the long weekend and an announcement that drilling has started at the Grizzly Central. Wouldn’t that be sweet.
Comment by Dan1 — October 6, 2015 @ 3:36 pm
Yes Dan, that would be sweet. I think the .23 gets broken and we move higher.
DDD4 – congrats to your .09 buy on DBV. Good for you. I love to see people get in low and make that money.
Comment by dave — October 6, 2015 @ 6:29 pm
Good move D4 , Chad Day is at the end of his rope and he will have his day in court. No guessing ,if , but’s, or maybes there are 25 holes at the Hat that say we have something . As soon as this ridiculous stunt orchestrated by Chad is dealt with , look for Farshad to continue with hole 25 to 1000 meters.
Comment by Les — October 6, 2015 @ 8:07 pm
good morning bmrboys I bring you the latest press release from heron resources(HER TEXCH) 2015 10 6 “HERON RESOURCES:WOODLAND DRILLING UPDATE: 27.7 M AT 23.4% ZNEQ FROM 401 M DEPTH”regards walter emond
Comment by walter emond — October 7, 2015 @ 12:04 am
EQT: For the last two days, early in the afternoon, the tsx has posted the preliminary buy-in list with large orders(~1MM shares each day) for eqt. Each day by the time the final list was posted, an hour and fifteen minutes later the orders were not there.
There is still a large short position here and they are avoiding as best they can another short covering rally like we saw last Friday where someone was forced by the tsx to pay 22 cents to cover ~575k shares held short.
I’m guessing eqt longs following this thread alone collectively hold millions. What would happen if we were all to call our brokers to call in our shares? Would we squeeze this short for another Friday like run, this time past 30 cents? Hmmm.
Comment by Treb — October 7, 2015 @ 2:37 am
Glencore about doubled in price, called the bottom, hope some of you got some 0.60’s.
Copper: International Copper Study Group revises down copper supply forecast, expects 2016 deficit. In a report published Tuesday, ICSG said there would be a 130,000 mt deficit in 2016 compared with a surplus of 230,000 mt it forecast in April. “The appraisal of the ICSG would justify significantly higher copper prices,” Commerzbank said in a note. Also yesterday Antofagasta announced it’s reducing its workforce by around 7% , that could weigh on production.
Comment by ConcernedCitizen — October 7, 2015 @ 5:12 am
Treb – the fund that is shorting is 150 million strong in the balance sheet. they have plenty of room to wiggle with EQT. But Hardy has met their match. I am guessing we see a good cover by Friday.
Comment by dave — October 7, 2015 @ 5:13 am
EQT opened with cibc buying some, this could be Mr. Shorty as they trade thru this house.
Comment by dave — October 7, 2015 @ 5:33 am
John… May I request a chart of TMM.TO??? Van Eck took timmins out of GDXJ and the stock tanked because of the liquidation… it has hovered at the lows for a bit… now creeping up..
Your guidance would be appreciated.. it seems that the s/p is way off for a producer. TIA
Comment by Jeremy — October 7, 2015 @ 5:36 am
EQT – they are shorting her here, but notice the big bids.
Comment by dave — October 7, 2015 @ 5:49 am
Dave, I hope you are right about Friday. Any idea when the 2nd tranche is expected to close?
Comment by Treb — October 7, 2015 @ 6:35 am
I am hearing Friday, but you should also know that its just what I am hearing. My concern now is it looks like shorty has broken it below the pennant. John, any comment.
Comment by dave — October 7, 2015 @ 7:03 am
EQT – .18 is support now, so this is what you want to watch for, but not on an intra day scale, it would have to break below this as a closing price.
Comment by dave — October 7, 2015 @ 7:17 am
Big bid at .18 now, maybe a good sign.
Comment by dave — October 7, 2015 @ 7:36 am
It can make intra day moves below the pennant. But in this case I dont believe it has even done that.
Comment by 02charoc — October 7, 2015 @ 7:39 am
I think EQT will trade in this range until the last of the PP is closed……not much time left to accumulate….
Comment by DDD4 — October 7, 2015 @ 7:42 am
Looks like Mr. shorty might be covering some now. They trade thru cibc and td. Lot of buys by td now. We shall see.
Comment by dave — October 7, 2015 @ 7:46 am
25. Dave-Wait for the close
Comment by John - BMR — October 7, 2015 @ 7:57 am
I hear ya John, the close is what matters
Comment by dave — October 7, 2015 @ 8:10 am
IMHO, Dave, EQT is trading in a very healthy fashion and we’re not going to see highs on this until there’s a major acceleration in volume…one drill hole into some massive sulphides, look out – Mr. Shorty will then be like a Canadian turkey for Thanksgiving, eaten all up…
Comment by Jon - BMR — October 7, 2015 @ 8:15 am
Jon – I agree on that for sure.
Comment by dave — October 7, 2015 @ 8:26 am
DBV’s case was on 29 Sept at Supreme Court of BC……Chad Day and his friends have a certain amount of time to responde to the pleadings and after that date further pleadings including judgement may be taken agsinst them without notice…..I guess they didn’t show up…..lol.
Comment by DDD4 — October 7, 2015 @ 8:35 am
Good to know DDD4. Thanks for that info
Comment by dave — October 7, 2015 @ 8:43 am
Thanks for the DBV update DDD4
Comment by ConcernedCitizen — October 7, 2015 @ 9:12 am
I found the info on DBV in today’s Terrace Standard on page A23 under Legal Notices…..just google Terrace Standard e edition and go under today’s paper on page A23….it mentions all the details.
Comment by DDD4 — October 7, 2015 @ 9:13 am
Hey DDD4 – did you happen to hear how long a time frame the Tahltan get to respond? Curious if we are talking a few weeks or a few months…let’s hope it happens soon. Interesting to hear that Chad Day didn’t even show up…for someone crusading for the Sheslay environment, it’s laughable that he couldn’t have been bothered to show up for court.
Comment by Steve A. — October 7, 2015 @ 9:19 am
Awesome, thanks for the info DDD4.
Comment by Steve A. — October 7, 2015 @ 9:29 am
BC Supreme Court Civil Rules state that a response to a claim must be made within 21 days, unless otherwise stated. Having said that, I guess it all depends on when Chad Day was served (if at all). Looks like a few more weeks of waiting I’d guess.
Comment by Steve A. — October 7, 2015 @ 9:36 am
I heard that it has been served…
Comment by D4 — October 7, 2015 @ 2:55 pm
for some reason it keeps defaulting to “D4” instead of “DDD4” – name change was because as a subscriber the site required a minimum of 4 characters.
Comment by Ddd4 — October 7, 2015 @ 2:57 pm