TSX Venture Exchange and Gold
Wow, what a week. Markets and individual stocks were flying around in every direction.
Gold traded in a range of $120 from a high near $1,340 Tuesday night to a low of $1,219 Friday.
The Dow went from a 450-point gain Monday-Tuesday to a 900-point loss in the futures market Tuesday night to a 257-point advance at the close Wednesday. For the week, the Dow was up 5.4%, its best weekly gain in 5 years while the small cap Russell 2000 performed twice as well – it surged 10%.
The financial sector powered 11.3% higher on the outlook for higher rates and less regulation, its best week since the bull market began in 2009.
For only the 2nd time in 20 years, the global bond market saw more than $1 trillion of value lost in 4 days.
Copper exploded from the $2.20’s into the $2.70’s, making its biggest weekly move since 1980, while Nickel pushed above $5 a pound for the first time since mid-2015.
In individual stocks, Garibaldi Resources (GGI, TSX-V), asleep for most of this year, suddenly burst to life and broke out of a downtrend going back to late 2015 on confirmation of British Columbia’s only Ni-Cu-rich magmatic system with PGE’s, Au and Co 10 miles southwest of Eskay Creek (the implications of this could be profound for both the company and the district).
Kirkland Lake Gold (KLG, TSX-V) sank Friday morning to $7.35 and then abruptly reversed on news of an unsolicited bid at more than 50% above market, with buy orders triggering a circuit breaker and a trading halt (what does this say about the current valuation of Gold producers?).
Canopy Growth (CGC, TSX) plunged to $7.06 Wednesday morning before surging to an all-time high of $9.98 Friday.
Canadian Zeolite (CNZ, TSX-V) doubled in price during the week to 91 cents as the company announced it’ll begin shipping its natural Zeolite to several medical marijuana growers in Canada and the United States.
All of the above was triggered in large part by Tuesday’s historic U.S. elections that resulted in a President-elect Trump and a Republican-controlled Congress. How will this all play out for investors in the resource sector?
Weakness in Gold and Oil led to a 4.5% decline in the Venture last week but don’t think for a minute that the Venture bull market is over. In fact, it has only just begun and we’ll explain why in today’s Venture Week In Review And A Look Ahead.
Click here to read the rest of today’s Week In Review And A Look Ahead, and learn more about where the Venture is headed in the coming weeks, with a risk-free Pro, Gold or Basic subscription featuring a 100% money-back guarantee, or login with your username and password.
Jon, I still feel I have time to get back into GGI. The reasons I believe why is because drilling won’t start until 2017, plus GGI will require cash to drill so I feel a PP is imminent. Even if another company partners up with GGI or injects cash for the E&L drilling we are still a ways from drilling. No doubt though, the traget is phenomenal. As for NRN, drilling starting as early as this week. If they hit, it’s early retirement for me, if not it’s back to the nitty gritty trading again – LOL
Comment by Dan1 — November 13, 2016 @ 11:02 am
Dan1, yes, of course you have time if you don’t mind getting in at higher prices which a lot of investors seem to like to do. And an important point is that while they’re not drilling the E&L this month like NRN is drilling Sequoi, it appears there will be an avalanche of news concerning the E&L and events there are going to trigger drilling in Mexico. I also expect an unconventional GGI financing compared to what we’ve seen the last 2 years. Up she goes. More advanced Cu-Ni situation than NRN and a better current valuation ($8 million vs. $27 million). Sequoi has some great-looking targets and I hope they hit, but the NRN market cap is higher risk by any objective standard.
Comment by Jon - BMR — November 13, 2016 @ 11:18 am
They said more news this month Dan, so who knows, Mexico can be drilled year round, grizzly as far as I know are still set up for winter,could they now be advancing elsewhere, let’s hope, but at this point I see GGI gaining strength, not weakness.
Comment by Laddy — November 13, 2016 @ 11:28 am
Two advantages GGI actually now has, Laddy, compared to many of its peers is a healthier chart (breakout above a long-term downsloping channel) and the fact the stock has no free-trading paper to absorb as no financings were carried out earlier this year. Stocks that ran hard over the spring and summer and took advantage of that with financings have come under pressure due to chart weakness and free-trading paper pressures—those situations will improve but perhaps not for another several weeks. What GGI needs to do quickly is strengthen its technical team with Ni-Cu-PGE expertise. I would watch for that shortly.
Comment by Jon - BMR — November 13, 2016 @ 12:00 pm
You may very well be correct Jon regarding GGI. I have an exit strategy on NRN. Fortunately I picked up a good many shares at 11.5 cents. You know the old saying. “Sell half on the double and let the rest ride.” I believe we will see NRN pop again when drilling starts and the anticipation will build because Sequoi was always the potential big prize. Apparently NRN peaked the interest of a new group of investors at the MIF this weekend.
Comment by Dan1 — November 13, 2016 @ 2:11 pm
Dan1, I hope you get early retirement. Should be an interesting week for GGI, judging by the volume last week it appears there is a lot of interest beyond BMR.
Comment by Danny — November 13, 2016 @ 5:34 pm
GGI “British Columbia’s only Ni-Cu-rich magmatic system with PGE’s, Au and Co 10 miles southwest of Eskay Creek” . So as a start, GGI, is alone in this dept and as for closelolgy, only MTS + CXO might have a spillover effect (similiar to NRN/CLE). I don’t recall CXO having done some work close to the E+L side of their property, yet
which leaves MTS as the dark horse still in terms of what lies beneath the surface till they get to work next year as well
Comment by david — November 14, 2016 @ 7:18 am