7 @ 7:00 « BullMarketRun.com

July 29, 2019

7 @ 7:00

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1. Gold has traded between $1,414 and $1,423 so far today…as of 7:00 am Pacific, bullion is up $7 an ounce at $1,421…fund managers sharply increased their bullish positioning in Silver futures, while largely maintaining the status quo in Gold, during the most recent reporting week for data compiled by the Commodity Futures Trading Commission…flows into Silver-backed ETFs this month have been unprecedented…Silver has slipped 2 pennies o $16.34 in early trading to begin the new week…Nickel and Copper are flat at $6.36 and $2.71, respectively, while Zinc is up a penny at $1.11…Crude Oil has added 28 cents to $56.48 while the U.S. Dollar Index is one-tenth of a point higher at 98.10…President Trump this morning urged the Fed to go beyond making a “small rate cut” this week, raising pressure on the central bank to lower borrowing costs by more than Wall Street expects…in a series of tweets, Trump reiterated his criticism of independent U.S. monetary policymakers, accusing them of acting too cautiously in comparison to China and Europe…

2. As Fed officials begin their discussions tomorrow they’ll have some more data with which to assess the economy…personal income, pending home sales and consumer confidence statistics are all due tomorrow…later in the week, on Thursday, the ISM manufacturing report is expected to show industry is stabilizing and continuing to expand…Friday’s July jobs report should show that the U.S. economy is still strong, with 170,000 non-farm payrolls being added and an extremely low unemployment rate of 3.7%, according to Refinitiv…that follows this past Friday’s report of 2nd quarter GDP which grew at a better than expected 2.1% but showed clear signs of impact from tariffs and trade friction…

3. Trade representatives from the U.S. and China will begin their first official in-person meeting since the G-20 truce, but neither side is showing any sense of urgency to complete a deal…the 2-day meeting is set to take place in Shanghai beginning tomorrow after PresidentTrump and Chinese leader Xi Jinping reached a ceasefire last month…however, expectations for a long-term resolution remain low as Beijing waits and sees Washington’s stance on Huawei, while Trump believes China may hold out until after the 2020 elections…“I don’t think personally China would sign a deal if I had a 2% chance of losing the election,” Trump said on Friday…“I think China would probably say: ‘Let’s wait. Let’s wait. Maybe Trump will lose and we can deal with another dope, or another stiff'”…

4. U.S. corporate profits are proving to be more resilient than expected in the 2nd quarter, nudging the stock market higher this month and distracting from anxieties about trade and economic growth…of the 221 S&P 500 companies that have reported earnings through Friday, 170 have surprised investors with better-than-expected result, according to FactSet…technology giants Alphabet and Twitter both topped expectations, sending shares up 9.7% and 8.9%, respectively, on Friday…average earnings among S&P 500 companies that have reported are up 0.7% from a year earlier (FactSet)…that has helped improve analysts’ forecasts for earnings to a 2.6% contraction for the quarter, better than the more than 3% pullback they had been predicting just a week ago…

5. Westhaven Ventures (WHN, TSX-V) has drilled 18.5 m @ 11.4 g/t Au and 40.2 g/t Ag within a broader interval of 52 m @ 5.1 g/t Au and 11.4 g/t Ag in Vein Zone 2 (SN19–10) at its Shovelnose Property near Merritt..that same hole also returned 1.98 g/t Au and 7.8 g/t Ag over 43.5 m near-surface (83.6 m to 127.1 m)…results from Vein Zone 1 released this morning were highlighted by 176.3 g/t Au and 131 g/t Ag over 3 m near-surface in SN-19–11, including 1 m @ 521 g/t Au and 381 g/t Ag (117 m to 120 m)…Gareth Thomas, President & CEO of Westhaven stated, “The high-grade Gold intercepts in Vein Zone 2 extend the scope of expanding the South Zone. Drilling continues to explore the extent and demonstrate the continuity of 2 parallel vein zones approximately 125 m apart. The goal of the current drill program is to keep extending these parallel zones, along with the strike length, and to target the preferred horizons where the Gold precipitates out. The summer drill program, employing two rigs, is ongoing and 12 holes have been completed totaling approximately 5,000 m. Assays will be released regularly as the program progresses”…Peter Fischl, Exploration Manager, added, “Hole SN19–10 confirms the potential for bonanza grades in Vein Zone 2. Such grades were first encountered in Zone 2 last year in hole SN18–18. Hole SN19–10 also indicates that significant Gold grades can occur over broader widths, like those encountered in Vein Zone 1 as seen in hole SN18–15“…(based on the geology of the vein zones with steep dips to the west, true widths are estimated to be about 80% to 90% of reported interval lengths)…

6. The Dow is up slightly through the first 30 minutes of trading…Beyond Meat (BYND, NASDAQ) will report Q2 financial results after the close…shares of the fake meat maker have soared more than 800% since its initial public offering on May 2, putting the company’s market capitalization at a whopping $14 billion…that valuation is higher than that of roughly 25% of the companies in the S&P 500 index, including multiple decades-old industry stalwarts…in Toronto, the TSX is 35 points lower while the Venture has fallen 5 points to 588 on weakness in cannabis stocks…Brixton Metals (BBB, TSX-V), which recently delivered strong drill results from its Thorn Project in Northwest British Columbia, reported this morning that it has arranged a fully subscribed, non-brokered private placement of a combination of hard dollar units (18 cents per unit with half a warrant) and flow-through shares (22 cents with a full warrant) for gross proceeds of $6 million…Compass Gold (CVB, TSX-V) has cut 7 m of 15.4 g/t Au, including 1 m @ 60.6 g/t, in RC drilling at its Sikasso Property in southern Mali (Farabakoura artisanal workings on the Ouassada permit)…the strike length of the mineralized system has been increased to 770 m…

7. Another project for the Trudeau government to kill, if it’s re-elected in October: A federal-provincial panel says a proposed northeastern Alberta Oil sands mine would be in the public interest, even though the panel claims the project would likely significantly “harm the environment and Indigenous people”…Teck Resources (TCK.B, TSX) aims to build the $20.6 billion Frontier mine near Wood Buffalo National Park in 2 phases…its total capacity would be 260,000 barrels of Oil a day and Teck has said it aims to start producing Oil in 2026…the panel’s report includes several dozen recommended conditions for Teck and the federal and provincial governments…they include mitigating harm to wildlife, monitoring pollutants and taking feedback from nearby First Nations into account…the federal cabinet has until the end of February to make a decision…“While the panel has concluded that the project is in the public interest, project and cumulative effects to key environmental parameters and on the asserted rights, use of lands and resources for traditional purposes, and culture of Indigenous communities have weighed heavily in the panel’s assessment,” the report stated, adding that the project would likely result in significant adverse effects to wetlands, old-growth forests and biodiversity, as well as to Indigenous people in the area…“The proposed mitigation measures have not been proven to be effective or to fully mitigate project effects on the environment or on Indigenous rights, use of lands and resources, and culture”…the panel also concluded that over the project’s projected lifespan of 41 years, the federal government could expect to reap $12 billion in taxes and Alberta could rake in $55 billion, with another $3.5 billion in municipal property taxes…