Gold has traded in a range between $1,544 and $1,560 so far today…as of 6:00 am Pacific, the yellow metal is down $6 an ounce at $1,549…Silver is 17 cents lower at $27.71…Copper has fallen 4 pennies to $3.44…Crude Oil, which is down about 14% for the month, is off another $1.39 to $89.37 while the U.S. Dollar Index is up over one-tenth of a point to 82.67…
Euro Zone, China & Today’s Markets
European markets and U.S. stock index futures temporarily rebounded this morning after the European Union Commission said the euro zone should move towards the direct recapitalization of banks from its permanent bailout fund…it also said the region should move towards a banking union and consider euro bonds as it laid out year-long recommendations…
The Commission was also critical of both Spain and France…despite introducing 27 billion euros in austerity measures this year, the Spanish government has still not done enough to hit tough EU-mandated fiscal targets and will need to implement yet more tax increases and spending cuts up until the end of the decade, according to the Commission…most strikingly, the commission began laying the groundwork for a potential showdown with France, saying Paris has not done nearly enough to meet its targets – like Spain, it must get its deficit to 3% of GDP by next year – and the Commission appears ready to fine the new French government if it did not take immediate action…
Italy’s 10-year bond yields breached the 6% mark today for the first time since January, and Spain’s 10-year yields rose close to a new euro-era high, as limp demand at an Italian debt auction reinforced fears over the the euro zone’s financial crisis…the gloomy outlook was exacerbated by a second consecutive drop in Europe’s economic sentiment indicator and to its lowest level since October, 2009…
Feeding fears that China, the engine of global growth, will not grow as fast as hoped, influential academics said Beijing should shun aggressive fiscal stimulus, in remarks published in leading state-backed newspapers today…they joined a chorus of commentary countering market expectations that China might unveil a stimulus package similar to the 4 trillion yuan ($630.1 billion) in spending unleashed during the global financial crisis…
Asian markets finished lower overnight with China’s Shanghai Composite off a modest 5 points at 2385…U.S. stock index futures as of 6:00 am Pacific are pointing toward a 100+ point drop at the open on Wall Street…
Venture Exchange
The Venture Exchange suffered its first loss in six trading sessions yesterday, falling 16 points to 1309…it would be a very positive sign if the rising 10-day moving average (SMA), currently around 1275, provides support as this market tries to gain traction…not surprisingly GoldQuest Mining (GQC, TSX-V) announced a bought-deal private placement yesterday – an agreement with Dundee Securities on behalf of a syndicate of underwriters…the PP will raise $5 million at 45 cents and is expected to close by June 20…
Crude Oil – Interesting Chart
As Crude Oil goes, so do the markets…there has been a close correlation between equity markets and Oil prices, so with Crude Oil down 14% this month it’s no surprise the stock markets have been rattled…so where is Oil headed?…John’s 2.5-year WTIC weekly chart below is quite revealing and offers hope that the Oil price has found a bottom after dipping slightly below the $90 per barrel mark this morning…
U.S. Dollar Index
Like dropping Oil prices, a surging U.S. Dollar is also market-negative…a recent breakout above key resistance at 80.78 was bullish for the Dollar Index which is effectively a mirror image of the euro…keep in mind the euro represents about 58% of the Dollar Index weighting…and the other currencies in the Index (with the exception of the Japanese yen) tend to move in tandem with the euro…despite its recent sharp gains, the Dollar Index is by no means wildly overbought on this 2.5-year weekly chart though RSI(14) is approaching previous resistance…the 83 to 83.56 area is where the Dollar Index could hit a temporary wall and begin to consolidate its recent gains which would certainly bring some relief to the equity markets…
Euro Chart
The battered and technically oversold euro is approaching a support band and there is also a small divergence between the current price and RSI(14), so conditions are probably ripe for a euro rally in the near future especially considering the current very large short position…
Hi BMR, any comment on GBB’s chart?
Thanks!
Comment by M. — May 30, 2012 @ 5:15 am
Good morning BMR ! There’s not much positive in your musings this morning, but you
have to report it as you see it. Have a good day ! R !
Comment by Bert — May 30, 2012 @ 5:18 am
I’m with “M”
I mentioned the last few sessions gbb appears to have bottomed and is clawing its way up. I suspect explosive action as drill results are given. SGC is very positive and this will be a prime takeover after a nice big run!!! Lots of gold, Canadian jurisdiction and presentations to the European investors. Lots of blue sky potential.
Comment by Natalie — May 30, 2012 @ 5:26 am
Actually, while the headlines from Europe may not be, the charts I think ARE VERY encouraging….looks like oil is right at a bottom – let’s see what happens….if that’s the case, markets should rebound nicely in June…the euro is certainly oversold and near support while the Dollar Index is approaching resistance………that’s a recipe for better markets going forward though today we could be in the red…
Comment by Jon - BMR — May 30, 2012 @ 5:27 am
yes, the red sea is upon us. Looked at level 2 on RBW this morning, it has flipped for the “going down anybody”. We shall see.
Comment by dave — May 30, 2012 @ 5:54 am
By the way, CEV, the “W” pattern did not materialise, so now maybe a triple bottom? One never knows what the venture brings us next.
Comment by dave — May 30, 2012 @ 5:56 am
Here is some info on v.prb.
http://community.nasdaq.com/News/2012-05/analyst-actions-stonecap-initiates-coverage-on-probe-mines.aspx?storyid=144679#ixzz1wM720s7a
Comment by Tony T — May 30, 2012 @ 5:58 am
Rumour has it that RBW will come thru with delivering some info before the end of the month, hopefully markets will be on our side tomorrow…
Comment by db — May 30, 2012 @ 9:36 am
Are Trueclaim”s TRM result”s good?.Thank you.
Comment by Banny — May 30, 2012 @ 10:19 am
Would also be curious to see a GBB chart if you can John. Last look .125$ decent volume. Where are our resistances? With a few positive deep drill results do we have a possibility to move like GQC?
Comment by pete — May 30, 2012 @ 10:30 am
John is working on a GBB chart right now….we will post by the AM….
Comment by Jon - BMR — May 30, 2012 @ 10:35 am
Thanks so much guys!
Comment by pete — May 30, 2012 @ 10:41 am
thx for the GBB chart!!! 😀
Comment by M. — May 30, 2012 @ 11:00 am
Where s THEO?
Comment by alec — May 30, 2012 @ 3:38 pm
Alec, lol my thoughts exactly…
Comment by GREG — May 30, 2012 @ 4:36 pm
ANON got burned on the short today? So will they comeback with vegenace tomorrow, or will we continue to rise?
Comment by alec — May 30, 2012 @ 4:59 pm
New brochure up on RBWs site. a lil funky how they set it up ojnline but interesting, and looks good!
rainbowresourcesinc.com/pdfs/RBWBrochure1.pdf
Comment by db — May 30, 2012 @ 5:32 pm
DB
No doubt it’s funky, i had to act like a monkey & stand on my head to read part of it,
but at least we know the company is alive & well. R !
Comment by Bert — May 30, 2012 @ 5:49 pm
Me, too, Bert, but it looks great…….I picked up on a couple things, like a comment from Johnston in his message about Jewel Ridge being a potential “large tonnage deposit” (language not used yet by Rainbow) and “encouraging results” from initial exploration….I think it’s safe to say there’s news coming VERY soon and from the looks of this, it should be good…….the poster-like map of RBW’s West Kootenay land package is impressive……
Comment by Jon - BMR — May 30, 2012 @ 6:36 pm
If you download the brochure on your smartphone with thinkfreeoffice it comes up real nice, legible without getting a kink in your neck. I agree with Jon, i like the property map with “high priority” targets. They have a defintive game plan and are executing well so far…
Comment by db — May 30, 2012 @ 8:29 pm
Good morning ! 21/2 hours before market & i see a lot of green. Because of
the different time zones, i get to see/do things first, the one disadvantage
being, if the world ends, am i the first to go ? It’s all about if, if, if,
if my Aunt had male organs, would she be my Uncle ? Have a good day. R !
Comment by Bert — May 31, 2012 @ 3:07 am
Bert … u r in NFLD yes???? just asking:)
Comment by Jeremy — May 31, 2012 @ 4:21 am
Jeremy
Yes, may i ask why you ask ?
Comment by Bert — May 31, 2012 @ 5:17 am
just wanted to know at which end of the world you were at!!!:) also explains your sense of humor… buddy live in Mount pearl … it was a good guess.. not many peeps are 1/2 hour of anyting!!:)
Comment by Jeremy — May 31, 2012 @ 11:17 am