Gold has traded between $1,162 and $1,170 so far today…as of 9:45 am Pacific, bullion is up $2 an ounce at $1,166…Silver is 10 cents higher at $15.91…Copper has added 3 pennies to $2.38…Crude Oil has lost 32 cents to $44.28 while the U.S. Dollar Index is off one-quarter of a point to 96.78…
Holdings in exchange-traded products backed by Gold have jumped in 5 of the past 6 weeks…that has narrowed this year’s decline to 3% (1,545 tons)…Chinese buying has been healthy recently in part because investors have been looking for a stable home for their money following the recent turbulence in the country’s stock markets…however, many are blaming the weather for lackluster Gold sales in India…the El Nino weather pattern that has gradually built in intensity this fall has caused scanty monsoon rains, affecting Indian rice harvests…in turn, that has hit incomes of Indian farmers who are normally big buyers of Gold at this time of year…while there appears to be less money in the pockets of rural people in India to spend on Gold at the moment, demand could still pick up over the next couple of weeks heading into the Diwali festival of lights, celebrated on November 11…Diwali is considered the most auspicious occasion to buy the yellow metal…
Crude Oil Update
Due to low prices, investment in the Oil sector in 2016 is likely to decline further after sliding this year by more than a fifth, according to the executive director of the International Energy Agency (IEA). “If it comes true, this will be the first time in two decades we will see Oil investments declining for two consecutive years and may be an indication for future Oil markets,” stated Fatih Birol.
The U.S. Oil rig count dropped by 1 to 594 in the latest week, the 8th consecutive week of declines…Baker Hughes Inc. reports that there are now about 63% fewer rigs from a peak of 1,609 last October…
Fed Meeting + Big Data Week
The 2-day Fed meeting starting tomorrow is unlikely to see a change in interest rate policy, but further clear communication on the Fed view of recent economic data will be important to market direction…a heavy slate of U.S. economic releases this week started this morning with purchases of new U.S. single-family homes falling by a more-than-expected 11.5% in September to a near 1-year low, according to the Commerce Department…other reports due this week include durable goods and consumer confidence tomorrow, Q3 GDP and pending home sales Thursday, and the core PCE index on Friday…
In today’s Morning Musings…
1. Lingo Media (LM, TSX-V) breaks out from Fib. resistance…
2. Fresh 2.5-year weekly Gold chart – where to from here?…
3. Updates on Equitas Resources (EQT, TSX-V) and Calibre Mining (CXB, TSX-V)…
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…
Impressive photos of those cores samples from GGI are good news but it will be quite some time before the drill program is completed and the lab results made public . Those who took the risk and bought at the lows recently have been rewarded well . All in all this is good for the Sheslay area.
Comment by Les — October 26, 2015 @ 11:08 am
JOn – PHM.V … very interesting company and one of the venture volume leaders for some time… any chance that you give your 2 cents on the company and the chart??? TIA
Comment by Jeremy — October 26, 2015 @ 11:58 am
I posted on the Sunday Sizzler report, please read gang. Don’t want to have to re-post all that.
EQT will probably rebound here soon after the PP is announced close.
Keep an eye on DVN. If you see it go up with big bids, they are ready to push it higher.
For those that don’t read my post on the Sunday Sizzler, thanks again for all your concern and prayers. Class act people here.
Comment by dave — October 26, 2015 @ 12:07 pm
Hey Guys,
A question about TA on eqt. If we didn’t know that there was a double top until after it occured based on this chart which was most recently than does it really work all the time. I feel like we didn’t find out until it was too late and now we are where we are. Im hoping that EQT can pull this off here. Makes me quite nervous.
Comment by 02charoc — October 26, 2015 @ 12:25 pm
Dave, you said EQT will probably rebound after the PP is closed – I agree, but the only question is, will it close? Seems like eternity and no doubt that is partially why the sp dropped.
I agree with your synopsis on oil stocks, very high risk/high reward. Got burned on a couple of oil stocks in the past and very reluctant to invest in them again.
Another pic posted on GGI website, just hope the drill hits massive sulfides. I expected news from GGI today and also expected a close higher than .135 given the core pics. Goes to show investors want the results in this new investor age.
Comment by Dan1 — October 26, 2015 @ 12:53 pm
Read this and then puke!!!!!
http://news.nationalpost.com/news/canada/judge-sides-with-first-nations-band-who-had-resisted-a-new-law-intended-to-force-financial-disclosure
Comment by Jeremy — October 26, 2015 @ 1:13 pm
Jon, now that you have paying subscribers, what are the chances that our post can become more instantaneous, or at least within 5 minutes? This would increase the # of conversations and information sharing on your site.
Comment by Dan1 — October 26, 2015 @ 1:16 pm
Les, do you think that they might release the result of hole 1 by itself in about 3 or 4 weeks time? Are they more likely to finish this round of drilling and release all the assays in one go which could be as late as January.
Comment by Tom UK — October 26, 2015 @ 1:21 pm
Speculative oil stocks would be the same risk vs reward as mining stocks all else being equal. I don’t see the difference.
Comment by 02charoc — October 26, 2015 @ 2:39 pm
02charoc, I would not consider that a double top, but rather a pennant formation that broke to the down side(it was supposed to break to the upside, ask anyone!). But even if you wanted to call it that, you could have sold at the second top around .21 and then watched it proceed to break through .30 the next day. Its hard to say what anything is until after the fact, so, no TA does not work all the time. EQT is a prime example of the importance of having a core position and a trading position. Try not to be nervous. It is still really early in the game and I,ve been buying down here, based on TA of course.
WRR finally looks alive at a close of .04. Yes!
Comment by Wayne — October 26, 2015 @ 2:59 pm
Anyone care to guess how many meters down they are?
Comment by weatheritout — October 26, 2015 @ 3:00 pm
Tom UK , I would use what Regoci has done in the past as a guide . He seems to function as the world turns to the beat of his own drum.
Comment by Les — October 26, 2015 @ 3:16 pm
This outcroup release today look the same as those seen at grizzly west.
Comment by Martin — October 26, 2015 @ 5:18 pm
02charoc – I agree with you that oil stocks are just as speculative as others, over the years, I have seen oil stocks take serious gaps down on bad news as opposed to metal stocks. That was the point I was trying to make anyway.
Comment by dave — October 26, 2015 @ 7:40 pm
Jeremy, I missed getting in PHN last week, had my eye on it looking to see if it would come back to .40 for a double bottom or take off. Then you know what hit the fan and I was away from doing my thing toward end of week. Hope you got in.
Yes, I still hold my core position in EQT. PP, lets hope tomorrow.
Side tid bits:
DVN – on stockta, 3 seperate levels of strong support at .17, news any day, it will run on the permit news.
CDB – Robert Friedland has become involved in this one, maybe that gap gets filled.
RKR – Had my eye on this one for a long time. Has hardly traded recently. If it opens with strong volume in the morning off the late news, its going to move.
GGI and EQT – still hoping for the grand salami.
Comment by dave — October 26, 2015 @ 8:01 pm
Dave re your post #3. Some of us only have gold memberships and cannot read your Sunday Sizzler post. You mention people providing you their concerns and prayers which doesn’t sound good. If something serious has happened in your life I just wanted to say that I am very sorry to hear that. Thanks for your continued contributions to this board.
Comment by Jamie — October 27, 2015 @ 5:01 am
I guess EQT didn’t need the price protection for the PP.
Comment by DDD4 — October 27, 2015 @ 5:11 am
Nice numbers from GoldQuest this morning…existing resource of course, but this pre-feasibility drilling is making the Romero resource that much more attractive…
Comment by Jon - BMR — October 27, 2015 @ 5:33 am
Jamie, thank you and so far nothing tragic, and we are trying to keep this from happening. I am sure once the police locate the estranged husband, it will get better.
D4 gotta agree with ya on EQT. There has to be a bounce somewhere in here soon, or you would think. The only thing that I have heard is the average for the shorter is .09, if you can think comedy into that one.
Yes, Jon, those are big numbers on GQC. would this not be construed as a major discovery, or is it not because of their previous drilling.
Comment by dave — October 27, 2015 @ 6:11 am
EQT PP price protection. lol. that was a good one, unfortunately, and even more so is the smart fund mgr who made off like a bandit after all shorting the stock. if they were to close this tomorrow, it would now come free trading just in time for the PDA nr’s that are meant to bolster the show, not provide a means to sopping up free trading shrs
Comment by david — October 27, 2015 @ 6:18 am
EQT- we might get that bounce today…..will see how it closes.
Comment by DDD4 — October 27, 2015 @ 6:37 am
The chart is speaking to that, DDD4…extreme oversold RSI(2) conditions that can’t persist at these levels (near zero) much longer…there also appear to be some “games” going on here which may include a short seller putting up offers to shake loose apples off the tree…
Comment by Jon - BMR — October 27, 2015 @ 6:44 am
EQT – if one looks at how many shares were bought above this price and looks at what it took to get it down to current levels one can see that people are holding their shares…..once it bounces on good volume it should quickly recover.
Comment by DDD4 — October 27, 2015 @ 6:53 am
Dave… PHM… man if you do the dd on it it looks like a longer term hold rather than a trade as such.. moving to the naz and tsx… revenue already.. acquisitions.. and a great model… price correction due to a PR hickup… solid numbers tho>>>>>
Comment by Jeremy — October 27, 2015 @ 7:06 am
Dave – hope your daughter is close to you… sounds like domestic violence and she will need all your support… never easy… wishing the best..
Comment by Jeremy — October 27, 2015 @ 7:08 am
Hmmmmm – Just heard EQT is into a system from J to I and they are moving to Q. Hmmmmmmm
Comment by dave — October 27, 2015 @ 7:23 am
Thanks Jeremy. It’s Domestic violence all right. He is the type that would do a school shooting rampage. She just picked the wrong one 7 years ago. Police are looking for him.
PHM – My eyes are watching and I do like this stock, looking to see if it corrects some.
We may see some up movement in eqt from what I am hearing. Lets see if it gets to the brokerage houses and moves up by tomorrow.
Comment by dave — October 27, 2015 @ 7:37 am
well Well, lookie here. finally some bid support on EQT.
Comment by dave — October 27, 2015 @ 7:41 am
Dave….let’s hope it’s not a system of dirt…lol
Comment by DDD4 — October 27, 2015 @ 7:44 am
Hmmm- believe that’s what they refer to as the
Southern response Trend, heading west toward
“C” target, where they did additional staking.
Sounds interesting Dave….
Comment by Bob — October 27, 2015 @ 7:51 am
It’s not trading like it’s the right “system”…..let’s give it some time for rumours to spread….
Comment by DDD4 — October 27, 2015 @ 7:52 am
PHM – careful – 44MM shrs (cost $1.50) came free trading in the last couple days and the insider dump back ($18MM worth of sales @1.36) in August
Comment by david — October 27, 2015 @ 7:59 am
D4 – gotta laugh, but I hear ya. Since I received the information, the bids have built to 6 figures, and the one large ask at .125 has fallen off. I am seeing more blocks of 20k to 40k coming through now which could (I am not saying it does) indicate “family members of crew buying”, we shall see. Looking at the chart, if it does have a last hour surge, it could wipe out the .13 and close at .135. Lets see what happens today and tomorrow.
Comment by dave — October 27, 2015 @ 7:59 am
EQT – bids have just exploded!
Comment by dave — October 27, 2015 @ 8:11 am
Good to know….I don’t have access to level 2 at work…..thanks
Comment by DDD4 — October 27, 2015 @ 8:16 am
Would touch Phm. Sleezy people involved. Might be a good trade though.
Comment by Seamus — October 27, 2015 @ 8:20 am
looks like the leak has sprung on eqt. go baby go
Comment by dave — October 27, 2015 @ 8:22 am
Wouldn’t touch phm I meant
Comment by Seamus — October 27, 2015 @ 8:24 am
Like I said earlier this looks like the bottom for EQT……just need to get the PP closed and let the rumours spread and we will move back up….nice bid support and this likely confirms the rumour….if its true we will soon see aggressive buying….
Comment by DDD4 — October 27, 2015 @ 8:30 am
D4 – had 300+ at .11 and .115, not the .115 dropped off, but still at .11 – could be a tactic to induce some selling for more cheapies.
Comment by dave — October 27, 2015 @ 8:43 am
bids are exploding once again on eqt at .115 and then dropping off…games being played
Comment by Roger — October 27, 2015 @ 9:27 am
Dave I appreciate all of your insight into the commodity space. You must have been involved in the industry in the past?
Or have close connections with company insiders. Either way it is welcome.
Comment by Mcilroy — October 27, 2015 @ 2:50 pm
Re PHM.. thx for the feedback… Dave – re daughter… so sorry we wish safety and happiness for our kids… tough when it doesnt turn out…
Comment by Jeremy — October 27, 2015 @ 4:27 pm