Is the move down today the start of something bigger for stocks?
Doc and Chris Temple join Cory Fleck for the market wrap today. We focus on the US equity markets discussing if they are setting up for a larger move down.
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Bill, I’ll wait for a down move of some significance in GDX. I’m afraid that if I try right now to trade a bounce, that bounce is not going to be significant and I could get whip sawed. I like to wait until it trades down to significant support and then attempt a trade.
It looks like the conventional stocks are gonna get clobbered this week. The bounce on gold might be good, but short lived.
Gold is ultimately repelling down the wall of worry, not climbing..
Have to say I agree with the comments on Gold from Erik Hadik, 20:15 into the show at Talk Digital Network:
http://talkdigitalnetwork.com/2015/11/this-week-in-money-24/
Fran, thanks for the podcast—I would say overall my view is very similar to Erik’s or Erik’s is very similar to my view.
We agree pretty closely on how the conventional markets will play out—Erik will be a little wrong about the bottom for gold—he feels the low was in July but we’ll see a lower low soon—probably december—-then it’s questionable whether we have a final low in 2016. However, we agree that the bottom is very close in the PMs.
A crack opens and some of the truth creeps in.
Here is a short video that appeared on The Financial Survival Network today. It is an advertisement for a silver coin product created by the firm backed by Mike Maloney (Baloney Mike to the rest of us).
No idea why FSN is running ads as if they are actual news but maybe they got paid to do it.
Just listen to his bullshit sentence-by-sentence and feel sick to your stomach about how he cons you suckers into believing in the fantastic power of precious metals as he lines his company pockets with the proceeds of your purchases. No pride at all. He is 100% transparent. This guy is a super salesman but also a TOTAL con-job .
He even has a hook.
Oh…oh….oh…..I was considered a retard at school and I can’t even read because I am a dyslexic who never finished grade 8 so now I do everything with a talking computer because I am too handicapped to read any books on my own….
The listening audience obediently groans in sympathy. We all want to support retards.
Oh, so Mike Baloney is a handicapped retard that can’t read so he needs our money and because he is Dyslexic yet *succeeds* so well then somehow that makes him better and more worthy than all the rest of us.
Anything for the sympathy purchase (like I said….he has no pride).
So we should therefore support him and buy gold and silver because he is actually quite a smart retard who went from the bottom of the class all the way up to the top after his mother died and their financial adviser lost most of the family fortune.
But he was so smart he rescued his downtrodden family single-handed from disaster. And he did it all with investments in silver and gold. Funny how a Dyslexic retard makes good in the world with no support and almost no money………………………..oh wait, maybe Mike is no retard at all. Maybe it is you and I who fall for his gimmicks that are the really stupid people in the world.
Jesus Mike!!!! Do you really think EVERYONE is so stupid to actually buy your little scam!!!!!!!!
Mike Maloney — Buy my silver coin because I am a retard. —- FSN
http://financialsurvivalnetwork.com/2015/11/silver-nike-mike-maloneys-latest-modern-ancients-silver-round/
A.l. not sure why you are so furious for selling real physical metals. I think you are a canadian. Just look your dollar compared to gold in the last 10, 20 and 50 years, what money you rather own? Is it obvious? You can not just look at last several years. Look at the years before last several years. I am sure you have lived longer than that. Calm down friend. Buy something real when you still have fiat currency.
LOL Listener, good post.
I owned stores that sold “crap” collectable stuff, only value was what the next sucker would pay.
Thing is, people need/want something to spend their money on.
If a person really did want to be wealthy, you know it as well as I do, real estate is the answer.
Other than a talent of course, or plain luck.
Collecting PMs is a “niche” thing, there are reasons its such a small market.
Baloney and company could very well be full of it, and Barnum was right, sucker born every minute, but why get ticked at Baloney? Might a well get ticked at those scammers selling the “shake your feet” thingy that cures everything from warts to sex drive.
Besides, PMs will spike again, if a guy is smart he will sell it and make a little coin, try reselling a “shake your feet” thingy. lol
You are cursing our ancestors as suckers, baloney, etc. Is gold and silver the money for thousands of years? People save PM prior to pure fiat and now there is nothing to save. PM are demonetized only for the last few decades (since 1979 Swiss finally took Franc off gold). We already have huge mess on our hands. The current monetary system is desperate and everyone knows it including you stated many times. We need a solution. Even though I don’t think gold will be currency again but some kind of partial backing of currency is needed. In history, only PM backed currencies have stability. Anything else inflate as crazy. I am sure you know this too. I can see this trend emerge as all the new wealthy countries buy gold and old tired countries sell gold. It is a wealth transfer in front of our eyes. People choose to ignore it, just like when China ignore it in 1800s.
Sure Dragon, but its nothing really to get excited about.
It just is whats happening.
I bin sayin we need a new system for some time.
PMs do not restrict paper printing (no matter what anyone tells ya) and PMs can be just as fiat as paper.
That’s the issue I have with bitcoin, its not fiat. It needs to be fiat to go anywhere.
I am not cursing our ancestors for anything we don’t do ourselves, and sure, there have been countless “suckers” in the past (how many marched off to war in 1914 for example?)
With smiles on their faces. lol
We still do it, and cheer the people that do at sporting events etc.
Its not that our ancestors were “suckers” its that we are STILL “suckers”.
PMs will increase eventually, just as everything else will.
5% of investible income and its not an issue in the least.
LISTENER,
It looks like Mike Maloney gets on your nerves like Bo Polny gets on mine. However, the NIKE 1-ounce coin Mike is advertising looks nice and only costs $2.65 over spot. With Mike’s deal, you at least get some physical and don’t have to pay $14,000 p/year for BS.
All The Best,
JIM
Amazing. You guys never quit. Any reason will do to slip in a bit more advertising, JIM.
What advertising? I wasn’t pushing anything for anybody. After reading YOUR post, I visited Mike’s site and simply think the coin looks nice and if he is making $1-2 dollars per coin, I can deal with it. At least the customer is getting something for their money. As far as Bo goes, IMHO he is an overpriced FRAUD.
All The Best,
JIM
Precious Metals Sector Due for Bounce but…
11/06/2015 | Jordan Roy-Byrne, CMT
http://thedailygold.com/precious-metals-sector-due-for-bounce-but/
Precious Metals Video Market Update
11/04/2015 | Jordan Roy-Byrne, CMT
http://thedailygold.com/precious-metals-video-market-update-13/
$silver could close for the seventh day under the Bollinger band (20,2) on the daily chart. I have never seen anything do that.
It definitely is getting stretched to the downside, isn’t it?
I think it is a drop of 10 out of 12 days. The chance for that happening in real world is very rare even when it is under pressure.
It also almost exclusively close on spike low and open on spike low. Mathematicians would be puzzled.
I’ve been saying all year that Romarco, Torex, Bear Creek Mining, and Golden Queen look ripe for a takeover at one point, because they are near term producers building out their mines. (Matthew has mentioned True Gold which is another new producer and up and coming story).
Here is a progress report on Golden Queen (one of John Doody’s top 10 picks).
_________________________________________________________
Announces Financial Results for the Third Quarter of 2015 and Provides a Construction Update
VANCOUVER, Nov. 9, 2015
BTW – Romarco did get taken over by Oceana Gold, and that was a nice little pop 2 months back, and then my shares converted over. I did sell out of the Oceana Gold position in October into the strength, but still like the new combined company.
Many are watching Torex as well.
Just read an article a few days ago that majors have to take big write downs due to bad acquisitions during the last few years. I hope they still have the stomach to take over near term producers. These producers are potentially expensive because the cost to take them into production. They may have to suffer several years’ loss due to low metal price as well. Hope I am wrong.
Yes, the majors are in trouble on their balance sheets, so it is most likely the Mid-tiers with their cash costs in line that will take over these near term or new producers.
For example, Romarco did get taken over (as predicted earlier in the year) but it was by Oceana Gold ( a Mid-tier not a Major).
Just throwing out a few ideas in case anyone else had any near-term producers or very solid explorers with feasibility studies completed that could be takeover targets.
Wishing everyone the best in their trading and longer term investing picks!
There are still a few majors that may play ball during this low price environment. Look at First Majestic taking over Silvercrest recently (another merger I was part of).
From what I’ve heard on the street (aka the internet) Goldcorp or Barrick may be eyeballing Detour Gold, and that is why it has had an extra boost lately.
Definitely time to get positioned before the news breaks on about a dozen other smaller stories.
Cheers!
I always hate Barrick, Newmont and Freeport, Barrick in particular. Not sure why, maybe lack of growth potential and their terrible business decisions.
Peter Munk is said to have coined the name of his company by flippantly combining the Hungarian words baszd and szarik. So, just like that, F#ck Sh!t Gold was born. Funny stuff if true.
It is Goldcorp that is watching Detour Gold now that I did a little digging, but I believe they have confidentiality agreements with several Majors that are courting them at present. Here is an article from last year that first put that idea on my radar:
_______________________________________________________
Could Goldcorp Inc. Make a Play for Detour Gold Corporation?
By Jacob Donnelly – November 28, 2014
http://www.fool.ca/2014/11/28/could-goldcorp-inc-make-a-play-for-detour-gold-corporation/
Here is the more ancient records from 2008 about the relationship between Goldcorp and Detour.
Detour Gold Enters Into Agreement with Goldcorp to Exercise its Option for the 100% Interest in the Detour Lake Mine Property
04/15/2008
More recently (how about yesterday) this commentator had this to say…..
“We think Detour Gold makes for an attractive takeover target by a senior gold producer at the right price. Demand is increasing for mining assets such as Detour Lake, as seen in 2014 when Yamana Gold and Agnico outbid Goldcorp to purchase Osisko’s large-scale Canadian Malartic mine in Québec.”
______________________________________________________________________
Detour Gold Results: A Need For Debt Refinancing?
Nov. 9, 2015
http://seekingalpha.com/article/3663996-detour-gold-results-a-need-for-debt-refinancing
I should have been clear that I was referring to Barrick above @ 9:31.
Doc, are you going to try to trade the bounce in GDX? Using what timeframe of charts (eg: daily, 1 hr, etc.). Thanks much.