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November 17, 2015

BMR Morning Market Musings…

Gold has traded between $1,065 and $1,083 so far today, hitting a fresh multi-year low…as of 9:45 am Pacific, bullion is down $14 an ounce at $1,068…Silver is off 3 cents to $14.22…Copper is stable at $2.14…Crude Oil has slipped $1.10 a barrel to $40.64 while the U.S. Dollar Index has added one-quarter of a point to 99.63

The initial rise in Gold prices on the back of safe-haven flows after Friday’s terrorist attacks in France has unwound as bullion searches for support…a Fed rate-rise still dominates investor thinking…futures show a 66% chance the policy-setting Federal Open Market Committee will announce a rate increase after its December 1516 meeting, up from a 50% probability at the end of October…that number, however, has fluctuated wildly in recent months on shifting economic data…

A Wall Street Journal survey of 10 banks saw their analysts expecting the price of Gold to average around $1,114 an ounce next year…the survey said the average cost for producers to mine Gold is around $1,200

Billionaire hedge fund manager John Paulson has stuck with his holdings in the biggest exchange-traded product backed by Gold, looking past slumping prices for the metal…Paulson & Co. owned 9.23 million shares of the SPDR Gold Trust at the end of the 3rd quarter, a government filing showed yesterday…that was unchanged from the 3 months ended in June, when the firm cut holdings for the first time in 2 years…

Syrian Refugee Issue Could Negatively Impact Canada’s Security Image In U.S.

A major issue is brewing over the Syrian refugee controversy that potentially could have a negative impact on the Canadian dollar if concerns flare up south of the border that a Canadian policy represents a security risk to the United States, just in time for the U.S. primary season…Prime Minister Justin Trudeau insisted again over the weekend, following a series of terrorist attacks by ISIS and an act of war against France, that he will forge ahead with his plan to rush in a whopping 25,000 Syrian refugees to Canada by January 1…meanwhile, more than half of all state governors in the U.S. are now saying they oppose letting Syrian refugees into their jurisdictions, though the final say on this contentious immigration issue will fall to the federal government…President Obama’s plan is much less ambitious than Trudeau’s – he wants to resettle 10,000 Syrian refugees in the U.S. over the next year…taking into account that Canada’s population is one-tenth the size of the U.S., Trudeau’s plan, in effect, is 25 times the scale of what Obama intends to carry out…obviously Trudeau hasn’t thought through how his stance may attract some very negative attention for Canada south of the border, especially among Republicans who control Congress…one can only imagine what Presidential candidate Donald Trump may have to say about the newly-elected Canadian Prime Minister’s agenda…

Saskatchewan Premier Brad Wall, seemingly one of the few remaining Canadian political leaders with any common sense, is calling on the Liberal government to suspend its Syrian refugee plan…

“I understand that the overwhelming majority of refugees are fleeing violence and bloodshed and pose no threat to anyone,” wrote Wall in an open letter to the Prime Minister.  “However, if even a small number of individuals who wish to do harm to our country are able to enter Canada as a result of a rushed refugee resettlement process, the results could be devastating.

“The recent attacks in Paris are a grim reminder of the death and destruction even a small number of malevolent individuals can inflict upon a peaceful country and its citizens,” wrote Wall. “Surely, we do not want to be date-driven or numbers-driven in an endeavour that may affect the safety of our citizens and the security of our country.”

Since Canada, of course, shares a massive border with the United States, Trudeau’s position is not going to go over well with many American politicians who may also interpret the new Prime Minister’s plan as a potential threat to U.S. security…House Homeland Security Committee Chairman Michael McCaul has already called on Obama to “temporarily suspend the admission of all additional Syrian refugees” pending a “full review”, according to a letter obtained by Fox News…

Just like after 9/11, Canadian sensitivity to U.S. security concerns at a time of war has to be a top priority in order to protect not only our closest friend and ally, but of course ourselves…major economic interests are at stake…

In today’s Morning Musings

1.  Where is the next support for Copper?…

2.  GoldQuest Mining (GQC, TSX-V) starts its prefeasibility study for Romero…

3.  The Lithium play that keeps pushing higher…

4.  Updated chart for Equitas Resources (EQT, 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…

31 Comments

  1. KSK – It would be nice to see this break out finally as it seems to have stabilized at these levels.

    Comment by 02charoc — November 17, 2015 @ 10:17 am

  2. Jon I bought GLH Golden Leaf at 77 – 80 cents instead of CGC is this 1$ area sell time or a little higher .OGI is another one to watch to high now but maybe latter .

    Thanks

    Comment by 123car — November 17, 2015 @ 10:30 am

  3. First Mining Completes Acquisitions of Gold Canyon

    Comment by Martin — November 17, 2015 @ 10:34 am

  4. eqt – am I watching some some short covering today? heavy lid at .115, but is it someone lidding,covering or running

    Comment by david — November 17, 2015 @ 11:02 am

  5. Jon or John, are you guys planning on attending ng the DBV AGM on December 8th in Vancouver??

    Comment by Jeff — November 17, 2015 @ 12:09 pm

  6. Absolutely, I’ll be there, Jeff, unless I’m doing a Sheslay site visit which is quite possible around that time…

    Comment by Jon - BMR — November 17, 2015 @ 12:18 pm

  7. With oil at 40 , gold at 1069 and copper at 2.09 , the CDNX looks to have closed at 519 breaking the Sept lows. This is making it tough in the exploration market , without demand there is no hurry to bring on new supplies.

    Comment by dwudrick — November 17, 2015 @ 1:22 pm

  8. I respect a lot of the due diligence here. To still be a believer in gold or large resource discoveries is myopic. Any one with training in economics understands gold has no real value as a reserve currency, only when idiots like Peter Schiff start calling for the demise of the global economy. He also once said “deflation is a good thing because consumers are served by falling prices”.

    I hope some of you folk know better than that. Also must laugh at the right wing ideology here too.

    Believers in gold, still betting on resources even at the end of the commodity super cycle. You can’t make this stuff up!

    Comment by Tapas — November 17, 2015 @ 2:17 pm

  9. Jamie – from your question yesterday, to the upside

    Comment by dave — November 17, 2015 @ 4:34 pm

  10. No mater how hard the banksters try to belittle gold to a worthless substance, all while they inflate fiat currencies to infinity and in the process created the largest bond bubble in history ; just remember gold is money and has been so for 5000 years.

    Bank conspiracy, collapse and the failure of the federal reserve is explored with Nomi Prins, author of ALL THE PRESIDENTS’ BANKERS. Here is a direct video link.

    Comment by Les — November 17, 2015 @ 4:34 pm

  11. David – EQT, From what I understand, many of the shorts have been covered. looking at the 100 trades that went through, you can see that anon bought about as much as they sold. What really stuck out to me is the size order of buys from 2:40 till close. This is usually indicative of “family members getting the word to buy”. Can’t be sure of coarse but just saying.

    Also, I mentioned yesterday the 2 doji candles that both hit .095 a week apart, this usually indicates an up move coming soon. Lets move to the TA. Macd had a cross to the positive, RSI and CCI moving up, 20sma about to touch 200sma (something has to give), and the bollinger bands are converging sharply and tightening, the bollinger bands closing to the narrow channel will be the key on the breakout.

    Comment by dave — November 17, 2015 @ 4:45 pm

  12. As long as it trends .. be it gold, stocks, or currency, there’s money to be made.

    Comment by Treb — November 17, 2015 @ 5:37 pm

  13. Dave, just letting you know, your email is bouncing back. Can’t reply “Mail system error”

    Comment by Dan1 — November 17, 2015 @ 6:02 pm

  14. Dave, thank you for your input in TA. Especially about the close below the Bollinger band, referring to your trade of PHM.
    Of course thank you Jon and John as well for your valuable info.

    Comment by jasi — November 17, 2015 @ 6:50 pm

  15. https://m.youtube.com/watch?v=JAddHWP4jEo&feature=youtu.be
    Bank conspiracy, collapse / Nomi Prins

    Comment by Les — November 17, 2015 @ 6:56 pm

  16. if you believe that good luck to you. You can’t fix stupid.

    Comment by Tapas — November 17, 2015 @ 7:18 pm

  17. Also where is the bond bubble? sovereign bond yields were negative in many countries last winter

    Comment by Tapas — November 17, 2015 @ 7:22 pm

  18. Tapas: your tone is like stockhouse. Please be respectful in your post. Cheers.

    Comment by rgiroux — November 17, 2015 @ 7:59 pm

  19. GGI – new map on website. Hold 4 step out?

    Comment by George — November 17, 2015 @ 8:00 pm

  20. Apologizes. SH is the last thing we want. The gold obsession is perplexing to me though. Each to their own though I would recommend this. Economics is not well understood (people claim to understand it but most cannot pass an intro micro module in university)

    mining.com/roubini-gives-a-talking-to-gold-bugs-other-pseuds-and-hacks-85867/

    Comment by Tapas — November 17, 2015 @ 8:55 pm

  21. Tapas – debate is welcome, disrespect is not.

    Comment by George — November 17, 2015 @ 8:57 pm

  22. That’s a major step-out, all right, George. And Regoci sending another message, I suspect, which is a very good sign. That looks like about 700 meters west-southwest of hole 3, immediately adjacent to a fault which should be a juicy location. If they’ve found joy in hole 4, which is likely in the area they referred to in the news Nov. 3 (intense potassic alteration associated with quartz-chalcopyrite and bornite veinlets within intermediate mag and IP highs), this stock will rocket higher because that would obviously demonstrate big volume right off the bat.

    News has to be imminent after this fresh map. And since good news usually travels fast, I predict Regoci will strike within 24-48 hours…tomorrow, Thursday, Friday morning?

    Comment by Jon - BMR — November 17, 2015 @ 8:59 pm

  23. If you are referring to the U.S. Govt, or lack thereof, then I agree with your comment and you are correct, you can’t fix stupid… Map is encouraging, I still think regoci will update us again this week.

    Comment by Tombc — November 17, 2015 @ 9:17 pm

  24. Tapas

    If you don’t believe in gold and the gold stocks then why are you here on this site, very curious…

    Comment by Greg — November 17, 2015 @ 9:35 pm

  25. A very interesting article on financial statements from gold mining companies. explorationinsights.com/pebble.asp?relid=3443

    Comment by Michael — November 18, 2015 @ 3:40 am

  26. News DBV restart drilling

    Comment by Guy Delisle — November 18, 2015 @ 4:52 am

  27. GGI drilling hole 4 with big step out as expected. They have been drilling it for more than a week. Would be nice to see some core photos and also to know what direction they are going with it.

    Comment by Tom UK — November 18, 2015 @ 4:56 am

  28. DBV…NEWS
    Doubleview Capital to restart drilling at Hat

    2015-11-18 07:47 ET – News Release

    Mr. Farshad Shirvani reports

    DOUBLEVIEW TO RESUME DRILLING AT HAT PROJECT

    Doubleview Capital Corp. is finalizing plans to launch a fresh round of drilling to expand the Hat project discovery in northwest British Columbia’s prolific Sheslay district. The Hat property this year has attracted direct attention, including site visits, from major international mining companies that have also contributed to the growing understanding of the Lisle zone and surrounding targets within a large corridor of gold-copper porphyry mineralization.

    Planned upcoming drilling will include completion of hole H-25 that was temporarily halted at a depth of 270 metres in early July following the arrival of some members of the local first nations community. The deepening of H-25 will be followed by the investigation of promising areas that are highlighted in the company’s just-concluded comprehensive review of historic and recent technical data. That review has provided fresh and exciting interpretations of the geologic and physical setting of the Lisle zone, and other parts of the Hat property. These insights have substantially expanded the target areas, and the company looks forward to reporting on this in the near future as soon as a final report is received.

    All work at the Hat property is being conducted in full compliance with provisions of multiyear mineral exploration permit MX 1-872.

    Following the interruption of drilling in July, Doubleview initiated legal action against individuals of the first nations community who participated in that blockade for an injunction to enable the company to resume work. The legal counsel for certain individuals has indicated to Doubleview’s legal counsel that his clients’ position is that there are no impediments to Doubleview’s access to the Hat property.

    In addition, in a draft response to Doubleview’s application, these individuals stated, “There has been nothing in the way of the plaintiff returning to the property to continue its program.” The draft response has yet to be received in final form.

    Under these circumstances, and given the current situation at the adjoining Grizzly Central where a drill program continues, Doubleview believes there will be no interference with its upcoming program.

    First nations members employed by Doubleview have been instrumental in the success of the Hat project since first-ever drilling commenced in 2013. The company looks forward to a positive dialogue with first nations that will create a long-term successful working relationship that fully respects cultural, social and economic interests. Jo Harris and Associates, a leading community relations consulting group that has guided clients through the approval process for 13 major mines in British Columbia, has been engaged by Doubleview.

    The company wishes to remind shareholders that it has proposed to decrease the exercise price of 3,931,251 share purchase warrants previously issued in private placement financings since August, 2014, to 20 cents per share (see Nov. 16 news release). Exploration at the Hat project, including the above-mentioned program, is always subject to the company successfully concluding financial arrangements.

    Qualified person

    Erik A. Ostensoe, PGeo, a consulting geologist, is Doubleview’s qualified person with respect to the Hat project as defined by National Instrument 43-101. Mr. Ostensoe has reviewed and approved the technical contents of this news release. He is not independent of Doubleview as he is both a shareholder and a co-optionor of the Hat project.

    We seek Safe Harbor.

    Comment by John - BMR — November 18, 2015 @ 4:56 am

  29. Dbv news finally! Now what about H23, when will we get those results??

    Comment by Sam — November 18, 2015 @ 4:58 am

  30. Awesome news from DBV, also confirms the interest of majors.

    Comment by Jon - BMR — November 18, 2015 @ 5:03 am

  31. Lots a news to come again from DBV !

    Comment by Guy Delisle — November 18, 2015 @ 5:05 am

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