Silver: Up 46 cents at $19.22 as of 7:30 am Pacific
Expect more “business as usual” from the Federal Reserve this week, which means don’t be betting on a rate hike Wednesday.
These words from Fed member Lael Brainard, delivered in a speech in Chicago a week ago today, help explain why the central bank will continue to act in a risk adverse manner: “In the presence of uncertainty and the absence of accelerating inflationary pressures, it would be unwise for policy to foreclose on the possibility of making further gains in the labor market.”
Meanwhile, the Bank of Japan is also meeting early this week, and the BOJ may even try to roll out additional stimulus measures in a continuing effort to jump-start inflation in that country.
How this will all play out in the metals and currency markets will be fascinating to watch, but we do like the odds of Gold and Silver pushing higher in Q4 for a variety of factors – and because the Venture’s behavior continues to support that bullish interpretation.
Editor’s note: Watch for numerous posts today and tomorrow on BMR, though Jon is on special assignment and as a result there will be no Morning Musings on these 2 days. Morning Musings returns on “Fed Day” on Wednesday.
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CXO – Hard to believe CXO is at an intra day low of .375 today , not too long ago we were at a high of .71 , wish I had a seen that coming. Winter is setting in at The Golden Triangle, need news for this baby to get back up there.
Jon with your recent site tour and connections and John with you chart skills …. what’s on the near horizon for CXO?
Comment by Vepper — September 19, 2016 @ 7:43 am
Jon, I’m just curious. What’s your take on Takara Resources
Comment by Kalkan — September 19, 2016 @ 7:53 am
Vepper – if we all knew these things we would be retired in the white sands of somewhere.. it is the same for all stocks that ran from Feb to Aug.. some more than others..
the bull market will correct all mistakes and timing issues.. once the FOMC is over and no rate hike the game will be back on!
Comment by Jeremy — September 19, 2016 @ 8:15 am
One question, can someone explain why KSK does not have a book value? Just curious. Thanks.
Comment by ARIMA — September 19, 2016 @ 8:32 am
Vepper
I believe this is the bottom…a great buy…in fact, I bought some today…and Jeremy, you are right. After Wed. we should see more sunlight in the Venture stocks.
Comment by John - BMR — September 19, 2016 @ 11:08 am
CXO – per Stockta, a very high resistance conf. number at .41 and .42, usually means its going to take good news to push past there. i said usually though.
Comment by dave — September 20, 2016 @ 5:28 am
CXO – correction, price targets of .41 and .45 have heavy resistance
Comment by dave — September 20, 2016 @ 5:30 am