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December 8, 2015

BMR Morning Market Musings…

Gold has traded between $1,067 and $1,080 so far today…as of 9:45 am Pacific, bullion is up $1 an ounce at $1,072…Silver is off 11 cents at $14.13…Copper is flat at $2.08…Crude Oil is relatively unchanged at 37.62 after hitting another nearly 7-year low, while the U.S. Dollar Index is off about one-fifth of a point at 98.46

A lot of good news has been priced into the U.S. dollar and a lot of bad news has been priced into Gold…when almost everyone says you have to be out of Gold, you know that’s the time to look the other way…negative sentiment in the Gold space continues to grow as hedge funds and money managers, who are typically the most bearish or the most bullish at precisely the wrong time, increased their short bets to record highs for the 2nd consecutive week, according to the latest data from the Commodity Futures Trading Commission (CFTC)…the smart money commercial traders are seeing things differently, and that’s what counts…

Commerzbank looks for Gold to strengthen in 2016 as the metal starts to find support once the U.S. Federal Reserve gets its first interest-rate hike out of the way. “We expect to see prices perform better in the new year once the Fed has implemented its first rate hike in mid-December, thereby dispensing with one key factor that has been weighing on prices this year,” Commerzbank said. “Supported by robust demand from Asia, Gold should climb to $1,200 per troy ounce by the end of 2016. Silver should likewise make gains in Gold’s slipstream, especially since rising physical demand will meet with falling supply.

“Platinum and Palladium will remain in supply deficit for the 5th consecutive year in 2016, meaning that higher prices are also justified here.”

HSBC On Silver

HSBC looks for Silver prices to rise in 2016, citing a move on the back of the bank’s expected rise in Gold as well as stronger supply/demand fundamentals…the bank has trimmed its previous Silver forecast to an average of $15.90 an ounce for full-year 2016, although this is above early-December prices…HSBC projects a full-year range of $13.25 to $16.75 an ounce…it then looks for Silver to average $18 an ounce in 2017

More Cost Cuts – A Sign Of The Times

Anglo American PLC unveiled plans today for a sweeping restructuring of its business that it said would result in the loss of 85,000 jobs…the plan includes asset sales, large cost cuts and a suspension of dividend payments in a bid to weather a severe slump in commodity prices…it marks one of the most drastic restructuring moves by a major mining company in the face of commodity price weakness amid softening demand from China and a strong U.S. dollar…U.K.-based Anglo, the world’s 5th-largest mining company by market value, said it plans to reduce its portfolio of assets by 60% to focus on a smaller pool of assets that are able to generate cash flow through the commodity price cycle…

China’s Imports Better Than Expected In November

Copper imports by China, the biggest refined metal producer and user, surged in November to the highest in 22 months as traders sought to profit from cheaper prices in London while financing demand rose before the end of the year…China’s overall imports were down last month but did not decline as much as expected…

Meanwhile, a new report, from Geneva-based asset manager Unigestion, says Canada is one of five countries most exposed to China’s slowing growth…Malaysia is the most vulnerable, followed by Australia, South Korea, Switzerland, and then Canada..

In today’s Morning Musings

1.  Two WTIC charts paint a clear picture for Crude entering 2016

2.  Two more Gold producers who should finish 2015 on a strong note…

3.  An attractive junior with a high-grade, fully-permitted Gold project featuring low start-up costs and robust economics…

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…

30 Comments

  1. Found this on Reuters;

    Nasdaq to buy Chi-X Canada to access Canadian equities market

    reuters.com/article/us-nasdaq-acquisition-idUSKBN0TR23120151208#k5RK0zvAghRfM1mT.97

    Comment by Tony T — December 8, 2015 @ 10:51 am

  2. Chatted with Garibaldi investor relations this afternoon.

    The company has been expecting assays back from Grizzly as of two weeks ago so we should have news on that by next week .. hopefully. Hole 5 has been completed and they are trying to determine where to drill hole 6 based on the information they have. There should be news this week regarding hole 5 and an overview of what they have up til now.

    Assays from Mexico are expected before Christmas. There have been long delays concerning the geologist tasked with interpreting those assays.

    They did comment that GGI are pretty tight lipped about Grizzly and they interpreted that as a good thing. Their words not mine.

    Anyhoos, cheers for now.

    Comment by Treb — December 8, 2015 @ 11:45 am

  3. Jon, why do you think GGI hasn’t said anything since hole #4? They did post pics of hole 5 but didn’t give the market an update as to the specifics yet. Surely they must be on hole 6 or 7 by now. The volume has been very light so I am not concerned about the small depreciation in SP the past week. Hopefully we get another update this week.

    Comment by Dan1 — December 8, 2015 @ 11:59 am

  4. I have no idea whats coming on this one, but I will through it out here. – ISS just got halted. 33 mil shares out with a market cap of 165,000 – are you kidding me. It hasn’t traded for days and traded today just a little. Lets see what their news says. As for me, I have an appointment to look at a place to live in morning, so I will miss the open.

    Comment by dave — December 8, 2015 @ 12:27 pm

  5. As per our Sunday report, Dan1, I believe they’re gearing up for some very important stuff. Regoci, a former broker, is also known to be very conscious of timing, he probably didn’t like the look of the overall markets Monday if he had planned on coming out with something at the beginning of the week. I strongly suspect we’ll get an update this week…

    Comment by Jon - BMR — December 8, 2015 @ 1:26 pm

  6. Bang on, timing.imo we may see an update, but I have a hunch regoci will come out swinging with results after the 16th.

    Comment by Tombc — December 8, 2015 @ 3:10 pm

  7. I wanted to caution anyone in CRS. Flow rates will probably be reported by no later than Monday. The price of oil taking its hit is taking a toll on the CRS chart. I know a great release can turn it around, BUT – — The CEO left the office today and went to Texas to see the flow rates. That sounds encouraging BUT —– The charts somehow, someway, usually tell whats to come in the future.

    Comment by dave — December 8, 2015 @ 3:55 pm

  8. Treb – thank you for sharing..:)

    Comment by Jeremy — December 8, 2015 @ 4:06 pm

  9. Dave .. PHM and CXV had some good movement today… the same analyst is on BNN tomorrow as well … in my observation(s) on certain stocks is that they are dropped down ‘gentle’ like so that big money can accumulate… PHM feels like one of them… as one analyst said.. now its real…
    as you seem to be a tech trader as such… the stock bhaved perfectly from 44 to 75 back to 52… in your opinion is the 200 day the next target???
    Just asking:) make sure you get a place for the pizza and beer party!

    Comment by Jeremy — December 8, 2015 @ 4:11 pm

  10. A re-post for Seamus. PHM, I always look at things from a TA and chart perspective cause I trade based off of this. The double bottom with the second not trailing out of the bollinger band is a very powerful turn around. I usually don’t look at the fundamentals and maybe I should at times. It has gone up from the .40 and I think it goes up some more into Jan. 2016.

    Thank you for that information which has to be taken into consideration if you held longer term.

    Comment by dave — December 8, 2015 @ 4:27 pm

  11. CRS.v results possibly out tomorrow morning.Great trading opportunity at .13 after a long drop over delays.If the numbers are big,the run will be a nice one.

    Comment by robinandthe7hoods — December 8, 2015 @ 5:30 pm

  12. Jeremy – that’s a tough call to the 200sma. If PHM can go higher than .75 and not do a double top, then at least .86 shorter term.

    Now – on to tthe pizza and beer party! Ohhhhhhh Jeremy, hmmmmmmmmm, what have you heard. Did you find a way to turn into a mouse like me and wiggle into a particular room to overhear something?

    Comment by dave — December 8, 2015 @ 7:08 pm

  13. Jeremy
    If I remember correctly the beer and pizza party was to happen when EQT hit it big…

    Comment by Greg — December 8, 2015 @ 11:12 pm

  14. PGX- Slowly PGX come back !

    Comment by Guy Delisle — December 9, 2015 @ 6:06 am

  15. Treb, thanks for your update regarding your talk with GGI’s IR company.

    I was told the same thing 2 months ago with regard to the assays for La Patilla. Personally I think they are stalling and waiting until they have news from Grizzly.

    I wonder why they are unsure where to drill hole 6? They have had time to analyse the core and they have an XRF analyser onsite.

    An update to cover all 5 holes would be very welcome.

    Comment by Tom UK — December 9, 2015 @ 6:21 am

  16. Dave – the double top is a possibility but not sure it would happen ‘this’ time… but the market will tell us yes:) ?? the technical bounce (2x) off 52 suggests that the 200 would be the next target as such.. with bumps along the way…

    Greg/Dave – have heard zippo of course.. and yes the party was for when EQT hit 5 bucks… that’s the nice thing about pizza we can eat it with little teeth when we are 80:)
    I no mouse BTW:)

    Comment by Jeremy — December 9, 2015 @ 6:31 am

  17. Jon: are you also looking for around 1090 before a breakout???
    http://wallstreetwindow.com/node/12490

    Comment by STEVEN1 — December 9, 2015 @ 6:43 am

  18. Let’s start with 560 first, Steven1, on the Venture, and then go from there…as for Gold, $1,100 is a key area but I don’t think there’s any doubt we’re going to see a push to chart resistance at $1,150…the last 2 days have been fantastic to scoop up some really undervalued opportunities just in time for the move higher…

    Comment by Jon - BMR — December 9, 2015 @ 6:53 am

  19. PXA – Halted at company’s request. Anyone know something about this company and why halted? Dave, Jon…your thoughts??

    Comment by Jeff — December 9, 2015 @ 6:59 am

  20. My guess, Jeff, might be a change of business perhaps?…that’s happening with increasing frequency, kind of like in the late 1990’s when the resource market was getting ready to turn…

    Comment by Jon - BMR — December 9, 2015 @ 7:24 am

  21. GEM – apparently they will be announcing a deal with a Chinese company anytime now. Could by a multy bagger. All levels of Canadian government already on board.

    Comment by George — December 9, 2015 @ 7:40 am

  22. YFI looks like it wants to break out on good volume.

    Comment by DDD4 — December 9, 2015 @ 7:46 am

  23. YFI needs to break through .29

    Comment by DDD4 — December 9, 2015 @ 7:51 am

  24. Yes, DDD4, good pick-up…pressure is to the upside with YFI…

    Comment by Jon - BMR — December 9, 2015 @ 7:53 am

  25. just got back. Ok, Jeremy, I was talking about a double top at .75 which I think it will hit on PHM. I’m not sure if you knew what I meant or you were thinking all time high double top. So, if it breaks thru .75, next resistance is .86. Not to sure on it reaching the 200sma just yet.

    Hopped in YFI at .24 with a small amount, saw this coming. Talked about the pennant flag breaking out. Their AGM is tomorrow. Big news can come at anytime.

    Good one spotting PXA halted Jeff. ISS also halted yesterday. both about the same shares out and market cap. This can be interesting.

    EQT – watch it!

    Comment by dave — December 9, 2015 @ 9:13 am

  26. YFI – by the way. No tax loss selling here gang. This could easily test its high back in May. This stock should be north of a dollar right now.

    Comment by dave — December 9, 2015 @ 9:28 am

  27. YFI will probably have .30 as new support and base around that a few days before moving up.

    There is another one that I am watching that has a beautiful pennant flag formation. I will give a heads up when its about to break to the upside.

    Comment by dave — December 9, 2015 @ 9:41 am

  28. Dave, I’m guessing PXA is doing an RTO. Let’s see what happens on the opening. How’s the move coming along?

    Comment by Jeff — December 9, 2015 @ 9:54 am

  29. Looked at 2 places. One more tomorrow. Packing around that. gotta be out by Monday. Ugh.

    Comment by dave — December 9, 2015 @ 10:26 am

  30. Jeff- your right . PXA to aquire blue creek.

    Comment by dave — December 9, 2015 @ 10:50 am

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