Gold has traded between $1,092 and $1,076 so far today…as of 10:30 am Pacific, bullion is up $1 an ounce at $1,095…Silver is off a nickel at $14.74…Copper is down 4 pennies at $2.38…Crude Oil is 87 cents lower at $48.32 ($49 is important support) while the U.S. Dollar Index has slipped one-third of a point to 97.11…
Gold has lost more than 6% of its value after 10 straight down days, its longest losing skid in nearly 20 years…holdings in Gold-backed exchange-traded products contracted for a 4th day yesterday, declining 4.4 metric tons to 1,565.5 tons according to data compiled by Bloomberg…holdings have fallen almost every quarter since reaching a record 2,632.5 tons in December 2012…still, the U.S. Mint has sold 118,500 ounces of American Eagle Gold coins so far in July, already the highest for a month since April 2013 when prices tumbled into a bear market…
“Although the physical markets have not responded vigorously to Gold‘s recent price decline, we do not think this necessarily means that physical demand is bound to remain weak,” HSBC Holdings analysts said in a report…
Today’s Equity Markets
Asia
China’s Shanghai Composite jumped for a 6th straight session overnight, climbing nearly 100 points to close at 4124…it’s not a rally we can trust at the moment for 3 reasons – 1) it appears to be merely just a corrective bounce following the critical breakdown below the uptrend support line to the 3400 Fib. level as anticipated; 2) the rebound has only occurred due to an extreme level of government interference in the market, even to the point of a measure preventing large stakeholders from selling shares; and 3) the Chinese economy is likely slowing more than what “official” Chinese government figures are indicating given the performance of commodities…is China no longer a locomotive of global growth?…
Shanghai 2-Year Weekly Chart
What would be encouraging is if the Shanghai could start building a base above the Fib. 4055 resistance…it closed marginally above that level today…RSI(14) may have found at least temporary support at the 50% level…we’ll see what the coming trading days bring…
Europe
European markets were relatively unchanged today…investors are still keeping a close eye on Greece…protests outside of the country’s parliament flared as 6,000 anti-austerity demonstrators gathered late yesterday after the Greek parliament voted to accept a 2nd set of economic overhauls demanded by its international creditors as a precondition to start talks over a 3rd bailout package of up to 86 billion euros…the Greek government hopes those negotiations will be finished by August 20 when the country is due to pay some 3.2 billion owed to the ECB…
North America
The Dow is down 110 points as of 10:30 am Pacific, thanks to some continuing lackluster earnings reports…significantly, Caterpillar Inc. (CAT, NYSE) fell to a multi-year low this morning after reporting earnings per share that matched estimates, but revenue that missed…the firm also cut its revenue forecast for the year…the heavy equipment maker cited currency impact and a soft economic environment, but said it is controlling costs and will be in position to take advantage of improving conditions when they occur…
In Toronto, the TSX is off 132 points while the Venture has declined 6 points to 602 (will support hold at 598?) as of 10:30 am Pacific…
Cannabix Technologies (BLO, CSE) is up a nickel at 30.5 cents after a positive write-up in the Vancouver Province…
B2Gold Corp. (BTO, TSX, NYSE) this morning reported record quarterly Gold production of 121,566 ounces for the April-June period, 42% greater than in the same quarter of 2014…the company says it’s on track to meet its 2015 annual guidance of 500,000 to 540,000 ounces of output at cash operating costs of between $630 to $660 per ounce and all-in sustaining costs between $950 and $1,025 per ounce…the company will release Q2 financials August 14…
Gold Stocks DUST-UP
Below is an interesting chart for DUST, the highly leveraged (3x) Gold miners’ bear ETF that trades on the NYSE…it has tripled in value since mid-May but is now up against resistance (RSI-14 and the top of a downsloping channel)…a breakout could occur, but the already overbought conditions in this reverse ETF suggests that a reversal in Gold stocks is likely not far off…t
The TSX Gold Index has strong chart support at 115, so that’s a key level to watch…it’s trading at 120 as of 10:30 am Pacific, a whopping 18% decline over just 7 trading sessions…more downside is certainly possible and somewhere between 115 and 100 is where this bloodletting will probably end…
Below is the DUST 5-year weekly chart…it does have a tendency to spike (spring 2013, fall 2014, and again now)…
Venture 7-Month Daily Chart
Below is John’s updated 7-month daily chart for the Venture which shows extreme oversold conditions comparable to the situation last December when the Index plunged sharply to a low of 637 before staging a rebound of 11%…note the breakdown below the uptrend line near the end of June – that was a warning sign of “trouble ahead” for this market, which demonstrates why technical analysis is such an important tool in an investor’s toolbox…
Canadian Dollar Update
The Venture performs best when the loonie is in an uptrend, and of course there’s a close correlation between the Canadian dollar and commodity prices…for now at least, as this 10-year chart suggests, the dollar could find support at current levels where it bottomed out at in early 2009…stabilization in the loonie is critical for the Venture to find its footing…
NexGen Energy Ltd. (NXE, TSX-V) Ltd. Update
Volatility creates opportunities, so now is why it’s so important to stay on top of the best high-quality situations in the resource sector in the event that overall investor panic throws out the babies with the bathwater…
NexGen Energy (NXE, TSX-V) is developing a world class Uranium asset with a rapidly growing discovery at its Rook 1 Project in the Athabasca Basin where 5 rigs are now turning as part of a 25,000-m, $9 million summer drill program that commenced last month…while Fission Uranium’s (FCU, TSX-V) discovery is at much shallower levels with impressive grades, NXE‘s Arrow Zone has churned out some exceptional grades at depth…
Many assays from the 2014 and 2015 drilling seasons have reported grades ranging between 0.13% and 66.8% U3O8 with grades between 1.5% and 5.0% U3O8 intersected regularly across substantial intervals…1.0% U3O8 is the equivalent of 23.5 g/t Au on a dollar per tonne basis (using U.S. $45 lb. U3O8 and U.S. $1,300/oz Au)…
Recent overall market weakness opened some fresh opportunities with NXE as it backed off in a healthy fashion from its all-time high of 90 cents June 29, finding support as expected around 70 cents…exceptional support exists at 60 cents on this 2+ year weekly chart…
NXE is unchanged at 71 cents as of 10:30 am Pacific…
Note: Jon holds a share position in BLO.
Has the CDNX achieved downside capitulation or about too ?
Comment by Les — July 23, 2015 @ 9:58 am
I mentioned yesterday about one stock that I felt would shine through all this. After some phone calls late yesterday and today, I have started my accumulation on this one bad market and all. I am putting this out to you before I even finish my accumulation. There is a chance of .06 and if we are real lucky .05 but I doubt that. I just purchased 50k through Fidelity and I will buy more if it starts to run or it drops more.
EQT
Comment by dave — July 23, 2015 @ 10:23 am
EQT – there are always a few stocks that buck the trend in the dog days of July and August. EQT will probably be one of them.
I guess that I can let the cat out of the bag on this one. The CEO KH was in Florida all day yesterday with Jeb. Jeb is going to complete his write up the rest of this week and recommend it to his people. Anyone who knows Jeb knows what this means for a stock. 2 to 4 million buying coming in at least. He was involved with Niocorp among many other big ones. EQT is coming out with 2 NR shortly, one next week or both or the other the following week. They are not sitting still on this. They will start drilling in August. All drilling contracts are signed and the pads are in the process of being mobilized. They have enough to drill 3 holes but they want to drill 20. As the share price rises through Jeb’s people in U.S. getting in and the NR’s, they then want to do a flow through which can be done at 50% to share price. So if the stock is at .10 they can do the flow through at .15, the incentive for investors buying higher are the warrants. They have investors that are willing to back them to close a financing in a matter of a couple days.
The last kicker to all this: my analysts in both the private clubs told me that Nickel is in extremely short supply and the metal is fixin to take a hike north in value. At .065 to .07, this is a no brainer in my eyes with very little chance of any more downside by next week. The shorters will also be scrambling to cover. GLTA
Comment by dave — July 23, 2015 @ 10:41 am
Dave. I picked up quite a few shares of EQT at 7 cents the past couple of weeks. This one could run. Thanks for the info.
Comment by Dan — July 23, 2015 @ 10:49 am
There’s more. I am waiting on another phone call but it won’t come till after market close. EQT did a head and shoulder in the charts recently but if you look at the chart .06 would be absolute bottom off of the downtrend from the head and shoulders. I was waiting for the .06, but I doubt we see it. It would not be wise to let the .075 and .08 get away before your in. EQT has strong resistance at every penny up to .10, once it passes .10 it gone folks.
Comment by dave — July 23, 2015 @ 11:10 am
Dan – I just picked up another 45k through Fidelity. It won’t be to long on this one.
Comment by dave — July 23, 2015 @ 11:22 am
It’s so refreshing seeing someone talk about another stock instead of the usual day in day out chatter on DBV and GGI. Let’s move on please!!
I bought some EQT!!!
Comment by Jeff — July 23, 2015 @ 11:52 am
EQT has some strong backing and an interesting land package, Jeff, that should definitely generate more interest when the drills start turning, so it’s most definitely a speculative play worthy of everyone’s due diligence. As John has shown, chart is overall very favorable.
PYR is showing some good strength, finally breaking thru .39.
Comment by Jon - BMR — July 23, 2015 @ 12:01 pm
Yes Jon, PYR looking ok too. I like EQT though cause of its low price, fundamentals , and TA. If they hit even a smiggen to what Diamond Fields hit, its off to the races. I am hearing Nickel set to soar from Sept. to year end. I will never forget in 2008, it was such a bad year rolling into the summer. The Canadian markets had blood in the street. Every commodity was getting hammered. But Nickel kept rising all year. I bought a company that started drilling in late May and they came out with their assays in July and the stock doubled in 3 days as the TSX was taking 250 to 280 red day poundings. Then of coarse the whole year changed when Noront hit on Sept. 1st. My point is Nickel always seems to go against the grain.
Comment by dave — July 23, 2015 @ 12:27 pm
Oh, I forgot to mention it was a nickel exploration company in 2008. They hit 1% nickel and it went nuts.
Comment by dave — July 23, 2015 @ 12:29 pm
If EQT hits nickel or a sniff of nickel, it will go more than nuts, given the address, just 30 km southeast of Voisey’s.
Comment by Dan — July 23, 2015 @ 12:50 pm
I received my phone call and I sit here in amazement. There is only one part that I can not let out and I pretty much had to take an oath on this, but here goes everything else. There was an institution that wanted in the last placement but Mr. Hardy wanted to keep it small so he turned away and of coarse the institution took it personal and started shorting the heck out of EQT up to the sum of some 3 million shares right now. This is a GOOD thing. The next 2 news releases coming out will be the next phase of exploration and the drilling timeline may or may not be in it. (today’s birdie said approximitely 25 days from today). The second will be the flow through financing of which the money is already accounted for, so it will be announced and closed within a couple days or so. I was filled in on Mr. Hardy’s background and I am very impressed. His bio shows he is the type of person that isn’t satisfied with anything below “all out”. There have been Geo’s from as far away as Australia that have called institutions in Canada and remarked of Mr. Makela being the best in the world when it comes to Nickel. Jeb’s recommendation coming along with the news releases should cause the price to move up next week. After the flow through goes through and this one institution that has been shorting sees that he is not a part of the deal, he will have to cover the shorts. I don’t think that I have to tell you what covering 3 million shorts will do to this share price. This institution still wants in but when the flow through comes out next week and closes quick, ball game over for this shorter. The drills are expected to be turning 25 days from today.
There is a person who wants to get involved in this and it probably will happen and be announced later, but this is the one thing I can’t give right now. I can not spell his name on any board, I am so sorry, but I can tell you its big.
Comment by dave — July 23, 2015 @ 2:17 pm
Dave, did you receive that phone call? Curious now.
Comment by Dan — July 23, 2015 @ 2:49 pm
Venture hits another all time low of 598. Does anyone here reading this think the bleeding will stop? If so, what will stop it? I think it continues to sink until we hit low 500’s and will only turn around when……well honestly, I have no idea when or why. Sigh…
Comment by tony t — July 23, 2015 @ 2:58 pm
See it now Dave. Boy am I glad I got into EQT early. It’s going to be one heck of a ride in my opinion.
Comment by Dan — July 23, 2015 @ 3:01 pm
Yes Dan, its posted right above you post #12
Comment by dave — July 23, 2015 @ 3:06 pm
Tony t I’m waiting for capitulation signals from various places including BMR.
Comment by Les — July 23, 2015 @ 3:12 pm
Time GGI went back to Mexico if the Sheslay exploration is halted the rest of this year which to me seems very possible. At least GGI has other properties to explore while they wait out the conflict. Not so good for DBV.
Comment by Dan — July 23, 2015 @ 4:00 pm
What’s the actual name of this EQT
Comment by T — July 23, 2015 @ 4:04 pm
We’re starting to see signs of capitulation from the market, Les, there’s no question – and that’s encouraging and exciting to see, though full capitulation has not occurred just yet like in 2008, so lower levels are expected.
Keep in mind, about 75% of value has been wiped off the TSX Gold Index and the Venture since 2011—–maybe it has to hit 80%, but the final bottom isn’t far off. Once you get that last capitulation moment, that will open incredible wealth-building opportunities.
So it’s time to be encouraged, not discouraged. Just like the time to be really scared was in early 2011. You have to be a contrarian.
Comment by Jon - BMR — July 23, 2015 @ 4:11 pm
Equitas Resources – Drilling the Garland property within a month and only 30km southeast of voisey’s Bay. Nine nickel/copper targets on it 25,000 hectare property. Previous VTEM only went to depths of 75 meters. EQT recently released results of the VTEM+ which can go as deep as 350 meters. All new anomalies were picked up by the recent VTEM.
Read on Equitas resources website –> News –> 2015 –> May 13, 2015
Comment by Dan — July 23, 2015 @ 4:16 pm
This contrarian stuff has been driving us crazy……i never thought i was catching a falling knife……etc..
Comment by STEVEN1 — July 23, 2015 @ 4:29 pm
It’s virtually impossible to time things so perfectly that you can simply just pick up the knife only after it has crashed to the floor, Steven.
Those who gradually took profits off the table during the final 6-9 months of the 2010-2011 bull phase did handsomely, even though they started selling 30% from the top. Likewise, if you’re in even close to the bottom here your patience will pay off. We’re in a mirror image of 2010-2011. The only time it’s wise to get greedy in the market is when others are stricken with fear.
Comment by Jon - BMR. — July 23, 2015 @ 4:46 pm
Jon, I can’t agree with you more. The only reason I bought EQT today is the bottom is probably .06 at best and I will buy more if it hits there. I know whats coming next week and did not want to lose my chance at .07. I believe all bottoms will be in by end of August, but I also think EQT bucks the trend. Even if they don’t, I am not selling such a cheap position. Maybe this ends sooner than end of August. I received an email tonight from a guy (I can’t remember his last name) his first name is Ian, and he is worth 21 billion. He talked about how the junk bonds were ready to fall. If I am not mistaken that would cause a reversal for the metals I think.
Comment by dave — July 23, 2015 @ 5:16 pm
Jon, I found his name, its Carl Icahn. Anyway he was saying how people were put into these risky bonds and they are getting ready to collapse. I do not know much about that end of investing.
Comment by dave — July 23, 2015 @ 5:22 pm
Thanks Dan
Comment by T — July 23, 2015 @ 5:27 pm
Yes Jon timing the market is tricky and one can never hit the exact top or bottom and I was will aware of the upside exhaustion and extreme highs in the RSI 14 in the base and precious metals . This may be a bottom for the metals but I’m thinking its not the end of the bear market for them as the long term cycles say it’s too soon to be at an end . If this is a bottom for the CDNX it may take years to build a base before the next bull . Hopefully we get some good bounces in order to improve the conditions for all the exploration companies.
Comment by Les — July 23, 2015 @ 6:28 pm
Did anyone else get an email today from DBV?
Comment by Greg — July 23, 2015 @ 6:44 pm
EQT a huge pump and probably that means dump.
Comment by Jonas — July 23, 2015 @ 6:49 pm
If you’re right, Jonas, and I’m not sure that’s the case given the people involved, then the real “pump” as you call it won’t start until the drilling begins, then you can decide to take your profits. In any event, it’s reasonable to expect that speculation will build in this one at some point. I don’t hold any EQT at the moment but I agree with those who see potential in this one.
Comment by Jon - BMR — July 23, 2015 @ 6:58 pm
Greg- please explain…. you received an email from DBV?
Comment by d4 — July 23, 2015 @ 7:00 pm
d4 re: #31 DBV issued email which was the BMR July 22 issue.
Comment by Robert — July 23, 2015 @ 7:18 pm
D4, Robert is correct
Thought that was sort of wired that they went to the trouble to send out what BMR posted yesterday ?
Just wondering how many people received it?
Comment by Greg — July 23, 2015 @ 7:31 pm
If a 3rd party wishes to send out one of our pieces with a link, Greg, that’s their call. It’s only proper and polite to ask permission. Perhaps DBV believes the information we uncovered is resonating at certain levels.
Comment by Jon - BMR — July 23, 2015 @ 8:08 pm
Jon
Did they ask for permission?
Comment by Greg — July 23, 2015 @ 8:19 pm
Yes, Greg.
Comment by Jon - BMR — July 23, 2015 @ 8:23 pm
Jon
Your right DBV must have saw merit in your write up as we all do
But why not put out what they know and what they are actually doing so all shareholders can hear it first hand from the horses mouth ?
Comment by Greg — July 23, 2015 @ 8:24 pm
.07 is now a pretty decent support on EQT. If it can pass .08, then the resistance at .09 is not a high CONF. number.
Comment by dave — July 23, 2015 @ 8:28 pm
Again, all I can guess, Greg, is that it is a very fluid situation, as I’m sure everyone can imagine, and it develops by the day. If there are high-level discussions in progress, it’s difficult to say much. At some point soon they’ll need to say something; in the meantime we just need to be patient. If they were to come out too soon and say the wrong thing, that could make matters worse, not better.
Chad’s letter May 21 I don’t think was thought out too well, was put out impulsively, and it has now backfired on him. Hence it’s no longer on the website. It’s best for these companies to be cautious and wise IMHO.
Comment by Jon - BMR — July 23, 2015 @ 8:30 pm
Jonas – anybody can say any stock is a pump and dump. Do some DD. Best of luck to ya.
Comment by dave — July 23, 2015 @ 8:31 pm
good morning bmrboys I bring to your attention the latest press release from heron resources (HER TEXCH) dated july 23 2015 ” HERON ANNOUNCES EQUITY FUNDING PACKAGE OF UP TO $20M WITH GREENSTONE RESOURCES LP” walter emond
Comment by walter emond — July 24, 2015 @ 12:11 am
Could Regoci be waiting until September in order to hit the market with some news? Given the lack of news for what seems ages maybe the summer doldrums is not the best time to update us. By September there will be even more drill holes to report along with progress of the milling of the rock. This would give a better overall picture of how things are shaping up in Mexico.
Comment by Tom UK — July 24, 2015 @ 1:39 am
Dan – EQT- The meeting with Jeb in the U.S. here has been postponed due to the sudden passing of Ryan Fletcher with MNY. Kyler Hardy with EQT knew him well and is stunned by the event. The meeting is rescheduled for next week. Jeb of coarse has U.S. following and this will institute U.S. buying. 2 confirmed news releases next week, they can’t give the details now but assured they are good releases, so much so that they have 2 extra people coming into the office next week to help man the phones. Of coarse, it will be sometime next week that the guy from one institution is going to realize that he is NOT going to be involved in the flow through (premium to share price) and he is going to say “oh chit” and going to have to start covering. One more positive step is Investor’s Digest is doing a write up on EQT and it is set for release on the last day of the month.
Comment by dave — July 24, 2015 @ 7:24 am
ya tom i agree,the bottom is close,you would just have the vultures swooping in on news now,i look to add and not run,no debt,great properties,and cash in the bank,just have to be patient with this one.
Comment by tombc — July 24, 2015 @ 7:26 am