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Chris opines on today’s markets.

Big Al
February 6, 2015

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76 Comments
    Feb 06, 2015 06:00 AM

    When you continue to follow the new investment ways you endue looking this way ! https://www.youtube.com/watch?v=XM-HJT8_esM

      Feb 06, 2015 06:17 AM

      Israel’s prime minister Benjamin Netanyahu out ????? Pope Francis IN ?https://www.youtube.com/watch?v=h4rOv4TDR7A

        Feb 06, 2015 06:21 AM

        Chris A nice UP day in Cannabix Teck ! 32% Today !

          Feb 06, 2015 06:58 AM

          Franky, it’s just starting. The stock is pretty much still under the radar.

            Feb 06, 2015 06:39 PM

            We are definitely not in agreement at all with you Chris. We have received comments from all over the world which support our opinion. Please do not use us for a “pump and dump site”

            LISTENERS BE AWARE. WE ARE IN NO WAY ENDORSING cANNABIX TECH.

            One more comment like this Chris and you are gone.

            Feb 06, 2015 06:48 PM

            AL ! i Don’t have the stock ! Is dis Chris Temple ?

            Feb 06, 2015 06:54 PM

            Sorry, Big Al. I won’t mention it again. Not forcing anyone to invest in it. But the company is not a pump and dump. They have been mentioned in a lot of major newspapers up here in Canada: Here one from the Globe and Mail: http://www.theglobeandmail.com/news/british-columbia/bc-duo-aims-to-detect-drug-impaired-drivers/article19285987/

            Anyhow, won’t mention it again.

            Feb 06, 2015 06:01 PM

            I no problem Chris ! Only expesing your opintion ! Thank’s ini-ways .

            Feb 06, 2015 06:07 PM

            Just looking at the financial statements on http://www.sedar.com that company has had ZERO revenues since its IPO in Oct 2013.

            However, they had to raise new money from shareholders regularly, which is a BIG RED FLAG in my opinion.

            Based again on its latest financials statement, within the next 3months, I would suspect either
            1) the company finds a way to raise more money again (and dilute existing shareholders) even more (there were 4mn shares at IPO and now there are already 10x more with >40mn !!!)
            or
            2) I highly suspect it will run out of cash and then potentially file for bankruptcy (I’ve seen this time and time again trading stocks of that kind).

            If this second case occurs, all the people who have bought shares of this “still under the radar” company might be left with nothing but almost worthless shares and their eyes to cry.

            You have been warned.

            Zorro

            Feb 06, 2015 06:22 PM

            Big Al ? I don’t think Chris think’s pump and dump plays ! ??????

            Feb 07, 2015 07:54 PM

            Zorro. Fair enough. I think you just don’t understand the sector the company is in and how the police our eagerly awaiting for this device.

            Feb 07, 2015 07:14 PM

            And Zorro, if you would have done proper DD you would have noticed the company is not the same one in 2013; it was a junior minor before being taken over and turned to what it is today.

            Feb 07, 2015 07:22 PM

            Zorro, I’ll start over again. The team is completely different from the one in late 2013. Those individuals who resigned were part of the mining team who have zero expertise in what the company is doing now. Why should they stick around?

            2)The company with this team came on board in in the middle of the year in 2014.
            3)I agree with you the several weed stocks are pump and dump. Not going to argue, but this company is offering something that is needed.
            4)The prototype will be done in a couple of weeks (news release earlier this month)and will go on to tests. They have patent pending for North American rights. So future companies who want to get into this field will have to deal with that once the company has the patent rights.
            5) The warrants have almost all been exercised.
            6) Is the share price getting ahead of itself, yes. Don’t disagree.
            7)I doubt that a former Mountie would run and pump and dump.

            Feb 07, 2015 07:44 PM

            Very good comment, Chris

            Feb 07, 2015 07:57 PM

            Big Al, I apologize for cluttering the board, but I had to answer Zorro. If he thinks the company is pump and dump, fine no problem. But better look at the personnel and ask himself if these individuals would be involved in such operation. I mean, c’mon, they even have Dr. Bruce Goldberger who is the President of the American Board of Forensic Toxicology on their team.

            Feb 08, 2015 08:04 AM

            Thanks for the information Chris.

          Feb 06, 2015 06:09 PM

          No problem Franky.

            LPG
            Feb 06, 2015 06:31 PM

            Franky,

            Chris Temple writes under the moniker “Temple”.
            “Chris” you are addressing here is another person. Maybe you got confused. ๐Ÿ™‚

            Love,

            LPG

            Feb 06, 2015 06:34 PM

            Thank’s LPG !

            LPG
            Feb 06, 2015 06:54 PM

            You’re welcome Franky.

            I might have a “Maredsous” beer this week-end, if you’re familiar with it. ๐Ÿ™‚

            Enjoy your WE.

            LPG

            Feb 06, 2015 06:32 PM

            Okay, sleeping dogs are sleeping!

            Feb 07, 2015 07:58 PM

            chris,
            You think I don’t understand the sector. Maybe I don’t. And maybe I’m a total ignorant. Even better, I would not surprise me at all if I was a total idiot. But I’ll say this:
            * I’ve been trading pot stocks extensively…. most are pump & dump companies with no solid business plan whatsoever and are run by average Joes who improvise themselves CEOs and who are just attracted by getting money from dumb potential shareholders. They take the money… and pshiiiiiiittttt…… the business goes under after a few quarters (once the company cannot raise money anymore)
            * this sector is a fad – as a matter of fact, it was one of the fads of late 2013- early 2014. I’ll note the company IPOed in Oct 2013 – right into the “fad-hot-zone” !
            * most of the money raised in this sector will end up in smoke – pun intended – resulting in massive losses for shareholders. It’s already been the case for many of these stocks.
            * specifically, this “company” had a mining property that it sold to one of its subsidiaries – First, that’s a Big Red Flag from an accounting standpoint. Second, from a business standpoint, either the company is good at mining gold, and it should mine gold… Or it is not… and therefore why I shall trust the company to be good at running a pot whatever business if it can’t mine properly to start with? H-e-l-l-o !!! Unicorns are flying in the sky….
            * to be specific again on this “company”: it is burning cash like hell and most of the money raised is going to paying “investor relations” ($250k/quarter or $80k/mths -> nice pay for those who fill the role/job …. for a company who doesn’t have any revenue ! That’s almost a $1mn/yr expense for whoever is filing the investor relations job… nice !!! thank you shareholders for your money !) and consulting fees (I wonder who are the consultants… but if I had to bet, I’d bet they are related to the owners – or, as in most of the case, the fees are paid to a shell company owned by the owners… )
            * the company is trading at >10x book value (did I say “hello” ???)
            * the company has tons of warrants outstanding -> these warrants need to be exercised otherwise they are worthless… so someone needs to pump the share price… right ??? Once the warrants become exercisable… guess what will happen ? Me think whoever owns them will dump them into the market to shareholders who want to buy this company “still under the radar”. And I bet those who helped the company raise money in the past have plenty of warrants…and that they would like to cash in….

            I’ll tell you what chris:
            1) to have your company mentioned in a newspaper is not so difficult – and to have it mentioned doesn’t mean it’s legit or well run
            2) I ended up looking into the company closely simply because after checking the price chart, it looked Exactly like so many of the pump & dumps I’ve seen time and time again while trading. Anyone who’s been trading pump & dumps would make that same comment and could recognize this right away.
            3) talking about the business: if any proper pharma company looks into this device seriously, they’ll need 6 mths at most to come up with something. By that time, “your” company will still be trying to bring to the market something that is already out there. Zero revenues since IPO, and I suspect Zero revenues likely in the future in that case. [Even if they come up with the product first, I can almost guarantee that a big pharma company will come up with a competitor within a few months – assuming the market potential is meaningful.]
            Unless, maybe they go back to their gold property which they sold to their subsidiary and try to mine some gold – which they couldn’t do in the first place????
            What a joke… But to have an answer to that last question, I suspect we (you) should ask the 2 board members who resigned from the company (with immediate effect) on Dec 31 2014. Personally, I’ve never seen a board member resigning the last day of the year (typically, people are busy preparing for the new year with their families on 31st Dec., no ?), let alone with immediate effect, and let alone not one but two board members. However, I’ve seen board members who joined companies with noble intentions, a good idea in mind to help the company’s business, and then slowly realize the business is shady. So they resign before justice gets hold of them and make them accountable of some fraud and ask them some m$ney back as penalties and send them to jail to re-consider the meaning of life.

            You are right chris. Maybe I just don’t understand. And maybe I’m wrong. But you have been warned – again.
            Z – aka https://www.youtube.com/watch?v=KfM2j4NBm-s

          Feb 07, 2015 07:25 PM

          Anyhow, I won’t clutter the board because Big Al doesn’t want that. But I had to answer your questions.

    Feb 06, 2015 06:11 AM

    they will raise in June if not before

    Don
    Feb 06, 2015 06:12 AM

    Corey, Being Canadian, you probably didn’t realize that the minimum wage in many states such as mine (NY) went from 8.25 to 8.75 in January. Think that might have had something to do with the 2% gain in wages? Think that means a whole lot to a head of household trying to make ends meet on that kind of wage?

      Feb 06, 2015 06:20 AM

      Thanks for letting me know Dan. I was unaware of the minimum wage bump… I’m sure it had something to do with the gain in wages!

        LPG
        Feb 06, 2015 06:27 PM

        +1 Cory

      Feb 07, 2015 07:31 AM

      Yes, after the initial giddy reaction, some of the commentators did point out that the min. wage jumped in several states.

      Like I said, the proof will be in ongoing retail sales, durable goods orders, etc.

    Feb 06, 2015 06:32 AM
    Feb 06, 2015 06:33 AM

    I added some more xop 4.3 cents from the bottom as oil is looking bullish for the short term. Started buying back GDX today. A great opportunity not to be missed.

    LPG
    Feb 06, 2015 06:34 AM

    Hello all,

    I think that when it comes to job numbers, it’s like elections for Stalin when he said: “it’s not who votes that matters, it’s who counts the votes”.

    My 2cts.

    Best to all, and GL investing/trading.

    LPG

    BDC
    Feb 06, 2015 06:40 AM

    Half-honest numbers are like
    Half-pregnent women
    BS or babies!

    Feb 06, 2015 06:41 AM

    Breakout coming in oil on the 1hr chart.

      Feb 06, 2015 06:50 AM

      Cool. Thanks. Will check it now.

        Feb 06, 2015 06:56 AM

        Well it seems to have failed so far so I took my profits.

    Feb 06, 2015 06:46 AM

    Gold will now have to prove if it is ready to break the trend or it is the same old story and we are now heading for a ICL.

      Feb 06, 2015 06:12 PM

      Absolutely no question the bear market in gold is still alive and well. The bulls got all gussied up and ready to dance but were head-faked once again and today is the evidence of that. I think we are heading below the lows of 2014 to be honest. A decline to 1050 is still in the cards before May is out.

        Feb 06, 2015 06:42 PM

        RUBBISH

          LPG
          Feb 06, 2015 06:32 PM

          lol Irishtony !
          Best to you,
          LPG

          Feb 06, 2015 06:48 PM

          I don’t think so Irish. Look at the weekly chart and it speaks volumes. I realize you guys are just dying for gold to finally break out and the show get going again. I have as much interest as you do, believe it or not.

          But I am trying to be objective as possible in the analysis. This is not about me being right. It is about assessing the gold market using all the information at hand and trying not to get lost in the noise.

          What was bothering me a couple weeks back was that I was taking a lot of flack from a few people here who were suddenly badgering that gold was going to take off and everyone would be left behind.

          Some were mocking my hesitation. The usual insults got traded. The point is that I did a better job of coming to a conclusion what was going to happen next and so far I got it right. That’s why I am coming back and reminding the super-bulls about something I think is important.

          You should never let emotion guide your investing.

      Feb 07, 2015 07:36 AM

      Gold’s comeuppance of late has been 1. that it had had a nice run and needed to pull back, but chiefly 2. that the reasons (most of them, anyhow) for gold’s rise the last few months have been interrupted. Lately, gold’s been a “risk off” asset; and with the Kool-aid drinkers on Wall Street thinking all is well, gold and Treasuries got hammered alike. If nothing worse comes of Greece and Ukraine and Wall Street starts to make new highs then yes, gold could be in more trouble. But I think this is much more about events (or lack of them) more than any technical numbers.

    LPG
    Feb 06, 2015 06:47 AM

    Something doesn’t jive today in the S&P…
    Slow VIX grind then pop on suddenly sliding S&P….
    Kinda “weird” price action for a “great day” thx to job #.
    My 2 cts.
    LPG

      LPG
      Feb 06, 2015 06:27 AM

      And now we have g/r on SPY.
      We’ll see where we close. If we close red, me will think “hmmmmmm…” about the market underlying strength.
      GL to all investing/trading.
      LPG

        Feb 06, 2015 06:44 PM

        LPG….Simple…PPT.

          LPG
          Feb 06, 2015 06:36 PM

          PPT was on vacation this afternoon it seems.

          Ok, they managed to close DJI up for the year (as Zerohedge mentioned).
          Biiiiig deallll.

          I see today’s price action on SPY as very uninspiring.

          As I’ve written several times, I’ll buy Dec 2015 SPY Calls if S&P gets near 1900, and more if it gets near 1800. Cash is ready. My view is that we could be in for a remake of 1998.

          Best to you, and GL to all investing/trading.

          LPG

      Feb 06, 2015 06:51 AM

      Watch that narrowing triangle on VIX that we talked about a few days back LPG.

        Feb 06, 2015 06:14 PM

        By the way, just for humours sake, Rice is up 3% today and was the lead commodity. So there you go LPG….the Fed DOES care about the price of rice after all!

          bb
          Feb 06, 2015 06:32 PM

          Stewart Thompson figures the most important commodity is rice.

            Feb 06, 2015 06:42 PM

            Expensive rice can cause serious problems in some countries. It’s conceivable that there would be interventions from time to time for the benefit of certain political allies.

          Feb 06, 2015 06:47 PM

          Bird…Sarcasm is the lowest form of humour…..Aint got a clue who first said it , but it sounds good.

          LPG
          Feb 06, 2015 06:41 PM

          Hello Birdman,

          Glad you’re talking about this (rice).

          As mentioned to Irishtony above, it seems the PPT was on “vacation afternoon”.
          So I would SUSPECT they had leftover rice that they realized would not use over the WE. So they let the price rise in order to get more $ from it. A “classic”.

          I know it sounds like a conspiracy theory, but I firmly believe this is what happened. I’m sure the chef in the PPT’s kitchen could corroborate my suspicion but I – sadly – don’t know him personally.

          Best to you & wishing you a good week-end.

          LPG ๐Ÿ™‚ ๐Ÿ™‚ ๐Ÿ™‚

            Feb 07, 2015 07:00 AM

            You saying we have rice price manipulation on our hands? Damn that Fed!

    Feb 06, 2015 06:49 AM

    Surely Radio Shack is a true bellwether of where it’s all going.http://gizmodo.com/so-long-radioshack-officially-goes-bankrupt-1683952033

    Feb 06, 2015 06:50 AM

    Agree LPG about the half honest numbers.

      LPG
      Feb 06, 2015 06:03 AM

      Hello Rev,

      Hope you are well.

      I never said “1/2 honest” personally.
      To me, if someone tells the truth 1/2 of the time , but lies the rest of the time, he’s a liar – not a 50% truthful person.

      Here’s an interesting short Zerohedge article on the accounting of oil/energy jobs losses (or lack of most of them) in the latest January job report. When I read this, again, I’m thinking “h-e-l-l-o !?!?!?!?”

      All of these eco indicators (jobs, inflation, GPD) are not supposed to reflect the eco reality IMHO: they are supposed to “serve” those who govern. Period. They are political communication tools, or said more bluntly, propaganda tools.
      As Marc Faber, I personally don’t consider eco statistics to reflect eco reality, but I just pay attention at the MARKET’s REACTION to their publication – it’s all that matters to me as an investor/trader.

      Having said all that, the job #s reflect – partly – the methodology being used, and which has changed countless times over the past at least 30yrs. That’s why referring to U-6 is interesting and valuable (rightly pointed by Al).

      FWIW, I don’t know what the # would be if they were accounted for on an U-6 basis, but the official unemployment rate in the EU is about 11%, ie at the level of the US U-6.

      Best to you, GL to all investing/trading.

      LPG

        Feb 06, 2015 06:12 PM

        Thanks you’re quite right LPG. Half truths don’t exist. Best you too, A

    Feb 06, 2015 06:57 AM

    half honest numbers how bout 25 % honest…

    Feb 06, 2015 06:28 AM

    Folks, I think we will get a big drop in gold on Monday and I think that will be a buying opportunity. My reasoning is this:

    Putin is trying to put a wedge between the US/UK on one side and Germany/France on the other over the Ukraine.

    Merkel and Hollanded are meeting Putin this weekend for talks about the Ukraine. If they can come out with some announcement of an agreement then it will suit putin’s purpose and splitting the US/UK from Germany and France.

    Likewise, Holland and Merkel are career politicians who like to have PR conferences and who like to look as if they are doing something.

    So I think some phoney ‘peace in our time’ type announcement will be made and gold will fall as a result next week.

    It won’t be peace in our time of course. It will just be a pause in the gathering storm.

      Feb 06, 2015 06:57 PM

      BOB….very well put…You & I follow whats happening in Europe & Russia , only a small number in the US fully understand whats going on , due to the massive propaganda , US machine….Russia is not our enemy , the biggest threat to Europe right now is the US.

        LPG
        Feb 06, 2015 06:52 PM

        Irishtony,

        I liked what you wrote and initially wanted to put a “+1”.

        However, I thought for a few seconds (fwiw) and realized I kinda disagreed with you (I do not agree on what is the “BIGGEST”).

        I would personally goes as far as saying that the biggest threat to the “average” European man/woman on the street are the EU ruling elites represented by:
        * politicians
        * central bankers
        * (many) large corporations

        And in my view, one person who really gets this is the Greece Fin. Min.

        Best to you & wishing you a good WE.

        LPG

        ** Please note I am not using the word “Europe” here as you did because “Europe” could be interpreted by different people as different things. Therefore, ultimately, it could be seen as a concept. So by using the term “average European man/woman on the street” more specifically, I specify my thought. Because if I had used the word “Europe”, this would encompass Central Bankers, the political & technocratic elite, the large corporations etc… So again, my thought was specific with re: to the average European man/woman on the street.
        Hope I’m not too confusing on this one.

    LPG
    Feb 06, 2015 06:43 AM

    Hello Bob UK,

    Hope you are well.

    Interesting thoughts, so we’ll see about that.
    Personally, I have no clue about what will occur but as always I stay open-minded to the possible outcomes and try to have plans in place based on them.

    I’ll say this though:
    WHATEVER the excuse “they” find to slam gold big time (especially in the low $1100 and/or below) I will take it, as a (FOR LACK OF BETTER TERMS) BFMO (Biiiiig Faaaaat Mama Opportunity) to increase my exposure to the metals and to some PM stocks.

    I’ve said it back in Dec. 2014: in late Oct./early Nov, I’ve been in snipper mode.
    If we have a nice slam/takedown in gold and the PM stocks are smacked too, it will be RPG/Bazzoka time (obviously, the lower the levels, the more the “fire at will”).

    Best to you, and GL to all investing/trading.

    LPG

      Feb 06, 2015 06:58 AM

      I am thinking we get a sell off in stocks within the next 6 or 7 trading sessions. The oscillations on the indices are not making me feel warm and fuzzy. If stocks do sell off I would be wary of miners despite the fact they are already at low points. Just my 2 cents.

        bb
        Feb 06, 2015 06:33 PM

        They are off their lows, they can go lower.

          Feb 07, 2015 07:07 AM

          Unfortunately, yes. Remember when everyone here was saying gold and silver could NEVER fall below the cost of production? And then we saw oil prices drop more than 50% and put half of all producers underwater. Why do people keep repeating that old saw that mines must all close down as soon as price drops below the average? It is proven to be false again and again. And now here we are and with deeply discounted crude oil and the response to falling prices was an increase in output! It is part of why I don’t think the gold bottom is in yet. There has not been a cleansing of the industry….especially the junior sector. So more pain must lie ahead.

    Feb 06, 2015 06:55 AM

    Looks like the general market is weakening and gold might start to rise Monday. Sold my xop with decent gains. XOP is really stretched out.

    LPG
    Feb 06, 2015 06:41 PM
    bj
    Feb 06, 2015 06:58 PM

    There is more ‘modeling’ than integrity in government numbers. A betters measure of how healthy the labor market are income tax and payroll tax revenues. Those numbers are readily available yet rarely talk about. Agree, that job growth is not keeping up with population growth, and that alone says our standard of living remains in decline–then comes the quality of jobs; thus and again payroll and income tax revenues give a more honest measure of what’s going on with the bottom 90%

      LPG
      Feb 06, 2015 06:02 PM

      +1 bj
      Best,
      LPG

    Feb 06, 2015 06:46 PM

    So Greece has 10 days to get their act together and apply for an extension to their bailout according to the Eurogroup head. That means you should put the date of Monday, February 16th on your calendar because that is day 10 from today.

    Suddenly that pennant formation on the VIX that I keep talking about is taking on a new meaning. I had actually been targeting Monday after next as the time it would finally break. Which direction I really don’t know but now we have an event to watch.

      LPG
      Feb 06, 2015 06:31 PM

      Birdman,

      The paranoiac in me actually thinks this issue will be sorted before Monday 16, and hence priced in before that date.
      BUT…. after consideration… you might be right in the sense that it might be another “at the last minute” deal type of situation.

      Best to you,

      LPG

        Feb 07, 2015 07:22 AM

        You could well be right. That’s partly why I have been saying its not clear if the VIX breaks up or down. Monday the 16th could come as a relief or it might arrive as a market surprise. We should keep in mind that if Greece does default it will trigger a whole lot of CDS derivatives and potentially cause some mayhem in the marketplace. Claims would be filed immediately so this is obviously someting that everyone wants to avoid due to the instability it brings and how it might set off demands for higher rates in the rest of the zone. I don’t think we get there though. What Greece needs is a method to meet their payment schedule without defaulting and that is what will be sought. Since they are technically insolvent though and unwilling to assume new debt it comes down to a requirement for debt forgiveness. But of course that won’t work because it still triggers default. What I see as a solution is the ECB just takes up some portion of the outstanding on their balance sheet or alternatively there is an arrangement made to transfer money from the IMF to allow Greece to cover. This would operate as a short term fix and could be modeled on the Canadian Transfer System where wealthy parts of the country support less able regions through a financial support mechanism. If I am right it means that Greece will be asked to cede powers to the center in exchange for the transfers. The end result is that a precedent is set that can become the pattern to the start of a Fiscal Union for Europe. We might just need a crisis before it comes to fruition though but barring steps being taken to bring equity to all regions of the zone there is probably little hope the experiment will survive. This is why I think Greece should walk away or they will never have bargaining power. That should trigger some compromise which is essential at this time. And it is also why the Center must relent in its demands for such extreme austerity at a time when depression is raging in Greece. There is no reason that the ECB cannot now use its powers to resolve some of the outstanding indebtedness through the mechanism now being established.

    Feb 06, 2015 06:49 PM

    THE JOBS NUMBERs WAS A BUNCH OF BULL……………….and the game goes on !!!!

    LPG
    Feb 06, 2015 06:33 PM

    Here’s a recent version Irishtony:
    https://www.youtube.com/watch?v=r9Ct-W_78fo
    Best,
    LPG