Gold has traded between $1,206 and $1,220 so far today…as of 10:30 am Pacific, bullion is down $2 an ounce at $1,212…Silver is up 7 cents at $16.63…Copper has climbed another 3 pennies to $2.54…Nickel is off slightly at $5.09 after a big run yesterday as base metals firmed on a pledge by China’s president to support a free-trade area in the Asia-Pacific…Crude Oil has slipped 65 cents to $47.59 while the U.S. Dollar Index has added one-third of a point to 101.09…
TDS points out that Chinese Gold demand has been strong on this price dip in the metal as reflected by a “remarkable” increase in the Shanghai Gold premium which has been as high as $15 an ounce lately. “The November drop in spot Gold prices has clearly sparked Chinese physical traders to step up their buying,” TDS says. “So, while we think that $1,200/oz is very strong support for Gold, any dip below should be bought (just as the Chinese are doing) for better times in 2017.”
Copper is headed for its highest close since July 2015 while Zinc is at levels not seen since 2010 amid a broad rally in commodities on expectations of a pick-up in worldwide manufacturing and infrastructure spending…a renewed acceleration of global factory activity suggests commodity markets are entering a cyclically stronger environment, Goldman Sachs noted yesterday…PMI’s strengthened in all major regions in October with Goldman Sachs recommending an overweight position in commodities for the first time in 4 years…
The Venture is going to start responding to the improved outlook for commodities as soon as tax-loss selling is over and the Fed gets a rate hike out of the way December 14…that should mark the start of a powerful second wave higher in this ongoing bull market…
U.S. Stocks Hit New Record Highs
The “Trump Rally” in U.S. equities continues with the Dow breaching the 19000 level for the first time this morning…why are markets responding so well to the Trump victory?…the answer is simple – investors see a new President who’s about to unleash the U.S. economy by cutting taxes across the board, rolling back regulations and improving America’s infrastructure through government-private partnerships…
Yesterday, in a short video address, Trump said he has ordered his transition team to draft a list of executive actions he could take “on day one to restore our laws and bring back our jobs”…
“Whether it’s producing steel, building cars or curing disease, I want the next generation of production and innovation to happen right here on our great homeland, America, creating wealth and jobs for American workers” (when’s the last time you heard a “politician” talk about creating wealth as opposed to simply redistributing it?)…
“On energy, I will cancel job-killing restrictions on the production of Ameircan energy, including shale energy and clean coal, creating many millions of high-paying jobs” (Canada, rich with Oil, is going in the opposite direction thanks to climate change fanaticism and politicians who have no business sense)…
“On regulation, I will formulate a rule which says that for every 1 new regulation, 2 old regulations must be eliminated“…
Wall Street scored a trifecta of record closes yesterday as a Crude Oil rally gave stocks an across-the-board boost…the S&P 500 (2198), Dow Jones Industrial Average (18956) and NASDAQ (5368) each scored their own record close, the first time all have done so on the same day since mid-August…the 3 had previously closed at records simultaneously back in 1999…
As we’ve mentioned, Gold will yet shine during a Trump presidency because deficits and debt are both destined to push higher, at least during the first half of his term, due to tax cuts, sharp increases in defense spending and the push to improve infrastructure (current defense spending constitutes half of all federal government discretionary spending)…such an agenda also has inflationary implications…entitlements won’t be touched…the Fed, meanwhile, is likely to continue only a very gradual pace of interest rate hikes…
S&P 500 Chart – On The Way To 2600?
This 10-year monthly S&P 500 chart is speaking very loudly – the train has left the station for next measured Fib. resistance which is 2587, nearly 20% above current levels…how long this will take to play out is anyone’s guess but it would certainly be possible for the index to reach 2600 by the end of next year…
Keep in mind, too, that the S&P’s run from a low near 1000 in 2010 to a high of 1371 in mid-2011 was also accompanied by a big surge in the Gold price, so don’t believe the mainstream media’s narrative that rising equity prices mean lower Gold prices (bullion has also demonstrated the ability over the years to move in tandem with a rising U.S. dollar)…
In Today’s Morning Musings…
1. Where to spot opportunity in the Cannabis sector sell-off…
2. Promising new Cobalt play under 8 cents…
3. DBV could score a “Hat Trick” with holes 26, 27, 28…
4. A look at one of the premier undeveloped Lead-Zinc-Silver rich base metal projects in the world in British Columbia…
Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…
NF – the biggest one day price variation and the highest volume (red), could spell the correction candle here.
Comment by dave — November 22, 2016 @ 11:35 am
Jeremy – interesting post. I have seen 2 weed runs fail in the last 4 years. Maybe this time around it will be different. You have the bulls and the bears just like anything else.
I do like BLO cause its more a tech stock with weed flavoring on top. Same with CNZ. If we had crystal balls with genie’s inside, we would all be millionaires. I am watching blo for an entry point as I think its success is inevitable.
Another stock I like that has weed flavoring on top is TNY, although it too is correcting.
Now I am sure that some will comment on my post – hence, the bulls and the bears.
Comment by dave — November 22, 2016 @ 11:48 am
DBV. does anyone know the location of their latest Holes 26 and 27 ?
Comment by Georgio — November 22, 2016 @ 12:02 pm
NRN – CLE – NRN says that SQ8 till sample are different , in a good way, from the other targets in the area. Crew mobilized to Sequoi and SEQ2 will get more sampling in spring.
Comment by david — November 22, 2016 @ 1:16 pm
The Canadian Innovation Exchange conference is tomorrow. It is public investor day and many companies and investors from the states will be attending. Just a few of the companies followed or mentioned here are:
David Macmillan – Deveron
Brooks Bergreen – Hit technologies
Jim Payne – Dynacert
DVR,HIT,DYA
Place your bets
Comment by dave — November 22, 2016 @ 1:33 pm
Let her rip NRN
http://www.newswire.ca/news-releases/northern-shield-mobilizes-drill-to-sequoi-602512045.html
Comment by Dan1 — November 22, 2016 @ 1:39 pm
If there are massive sulphides there, Dan1, we should know quickly…they’re not saying which anomaly(ies) specifically they’re drilling but interesting till sampling results for VTEM anomaly SQ8…
Comment by Jon - BMR — November 22, 2016 @ 2:18 pm
Jon, as per the NR they are testing 5 Geophysical targets, so I assume they will test all 5. SQ8,6, 5, etc.
Comment by Dan1 — November 22, 2016 @ 2:22 pm
Dave – I think the main difference is the bright light that has been shining on the sector since Trudeau opened his yap and the US election… Sessions may have a tough time pushing his agenda so the environment seems to be very different.
Have you seen the video on Agoracom with Kal?? interesting indeed…
BLO will succeed as long as the accuracy is repeatable.. but find it hard to believe that with this the 3rd iteration that they dont have it nailed…
seems everyone is trying to get a license to grow.. thats where the confusion will appear.. the timeline on this isnt short.. I would say that within 3 months we will get a peek into the next 5 years.. putting the genie back in the bottle will be very difficult I think.. but we will see..
Comment by Jeremy — November 22, 2016 @ 3:07 pm
Finally a little buying in CLE today which is likely related to the NRN news.
Comment by Danny — November 22, 2016 @ 3:41 pm
Jeremy – Your right. I totally forgot about the trudeau factor. Lets hope the weed gets passed in more states and can keep the better ones going. I agree with you on BLO, but I bet they pull it off. It is a great Tech stock with the weed flair and I bet it will be one to sustain the drive and continue a solid chart.
Comment by dave — November 22, 2016 @ 5:29 pm
Jeremy – I forgot to say that Hilary might have been a better candidate for the weed market to thrive. I’m not sure Trump is so high on the idea, but thats just a guess. time will tell in about a few months.
Comment by dave — November 22, 2016 @ 5:43 pm
I would agree, Jeremy, putting the genie back in the bottle on this one – as much as some would like to do that – is going to be problematic. As for Sessions, he’s going to have his hands full with illegal immigration and terrorism-related issues to overturn the mess that has been created. Those will be priorities and they will require an incredible focus in terms of time and resources. I’m sure he’d love to see an effective marijuana breathalyzer make the streets safer, though, and BLO has the answer.
Comment by Jon - BMR — November 22, 2016 @ 6:44 pm
Well then … dialog achieved:) HRC would have sent the business to the ozone I’m sure.. about taxation.. Trump – doesnt care.. BUT the ability to nail people is of concern I’m sure since he wants the law enforcement on his side..
hear what he did wih the journalists??? Holy fack!!!!
carved them a new one… he is becoming a looser cannon each week..
There is a list of executive orders being prepared for day 1… many could be scary I’m sure..
I really dont care about much.. except having 2 mill in the nxt 2 years so I dont have to care:) just wish it would just hurry the fack up!!
Comment by Jeremy — November 22, 2016 @ 6:53 pm
“Journalists” is a very polite description, Jeremy.
Comment by Jon - BMR — November 22, 2016 @ 6:57 pm
LOL Jon…:) well the bull market is done in gold… it was a bear market rally only… no other explanation
Comment by Jeremy — November 23, 2016 @ 5:57 am
I’m sure Gold is on the way to $900, Jeremy (lol), especially with higher U.S. deficits imminent and negative real interest rates…
Comment by Jon - BMR — November 23, 2016 @ 6:08 am
Ya rite,, that us zit is getting bigger and bigger by the day, sooner rather than later, look out!!!
Comment by Laddy — November 23, 2016 @ 6:21 am
NICE drill result out of Lion One this morning – 71.4 g/t Au over 8.4 m incl. 127 g/t Au over 4.5 m…
Mr. Walter Berukoff reports
LION ONE INTERSECTS 71.41 G/T GOLD OVER 8.41 METERS AT TUVATU
Drilling, dewatering and development has begun at Lion One Metals Ltd.’s 100-per-cent-owned and fully permitted Tuvatu gold project located on the island of Viti Levu in Fiji.
Initial drilling results include 71.41 g/t Au over 8.41 meters from infill drill hole TUDDH 406, including 126.67 g/t Au over 4.56 meters, drilled from surface to a vertical depth of 92 meters.
Lion One has commenced ongoing drilling of infill and extensional targets of the Tuvatu gold deposit, with one surface drill rig currently operating, and one underground drill rig onsite and ready to be mobilized as the dewatering of the Tuvatu decline progresses.
“These initial infill drilling results further confirm the high grades and continuity of near surface mineralization at Tuvatu”, said Stephen Mann, Lion One’s Managing Director. “Our objective with our ongoing drilling programs is to extend and increase confidence in the resource ahead of mine development at Tuvatu.”
Comment by Jon - BMR — November 23, 2016 @ 6:23 am
right now Jon – I wouldnt be surprised at anything. if gold is a barometer of gov confidence, and with the trumpster and his cronies managing their own profits, I wouldnt be surprised if someone spouts that gold is no longer needed in the world.. chins can have it all .. we dont care..
In my circles there is a lot of despair as of now… white flags everywhere..
Gold is as gold does… and I think we are screwed… this is the last line in the sand 1190ish… full move from Jan almost retraced..
Comment by Jeremy — November 23, 2016 @ 6:35 am
sorry the 61% fib is 1172ish
Comment by Jeremy — November 23, 2016 @ 6:37 am
right now Jon – I wouldnt be surprised at anything. if gold is a barometer of gov confidence, and with the trumpster and his cronies managing their own profits, I wouldnt be surprised if someone spouts that gold is no longer needed in the world.. chins can have it all .. we dont care..
In my circles there is a lot of despair as of now… white flags everywhere..
Gold is as gold does… and I think we are screwed… this is the last line in the sand 1190ish… full move from Jan almost retraced..
Comment by Jeremy — November 23, 2016 @ 6:37 am
TD on CSE pot stocks , from the other day “In light of recent volatility in Canadian marijuana stocks, please be reminded that Stop orders are not accepted on the Canadian Securities Exchange (CSE). Stop orders include Stop Market, Stop Limit, Trailing Stop Market, and Trailing Stop Limit orders. If you place a Stop order for a CSE-listed security, the order will be rejected.”
Comment by david — November 23, 2016 @ 6:52 am
Jon – what in your mind has happened with Probe Mines?????
Comment by Jeremy — November 23, 2016 @ 6:55 am
RUSSIA bot 40t’s of gold last mth. Chinese bot only a little. Commercial building in Argentina takes flight after Don + Ivanka talk w Argentine pres. Nice. as the swamp refills
Comment by david — November 23, 2016 @ 6:56 am
We actually have a chart on Probe this morning which is the best way to understand the current trading, Jeremy, especially after support at $1.40 gave way on continued pressure on Gold…
One of the first things you need to look at in a decline (or a jump in price) is volume, and the volume in this decline for PRB has been very weak…so that keep in mind…it will trade according to its technical parameters until news arrives…they have been drilling the Val d’Or East Project and there’s no reason why results from there should not yield strong numbers given the existing resource…PRB has tons of cash and will be one of those Gold stocks to pick up at a bargain basement price at some point up to mid-December…
Comment by Jon - BMR — November 23, 2016 @ 7:14 am
DBV – one would hope as the PP gets closed, selling should stop and buying take over as they get closer to drill results. These cores don’t look dissimiliar to any other cores posted , which pulled up Cu eq ranging from .3 to .8%. Be nice to come back results on par or exceeding past drillling
Comment by david — November 23, 2016 @ 7:28 am
Thx Jon.. will be watching:)
Comment by Jeremy — November 23, 2016 @ 7:42 am