BullMarketRun.com

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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