LPG and Doc wrap up today’s action in the markets
A slight reversal day for the US markets and oil but will it hold? We ask LPG and Doc.
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Every country who has EVER tried to defend their peg also thought they could defend it…
🙂
My 2 cts.
LPG
Bob…They cant back down now it would make them look weak…They have backed themselves into a corner, just like the Fed….Iran can smell blood. Lets just hope one of them gives in before millions die.
SCHLUMBERGER ……laying off 10,000…….buying back $10billion in stocks.(zerohedge)
I saw that – trimming the fat in the the low oil price environment is probably wise. It also may be due to redundancies in staff in their expected merger with Cameron.
Schlumberger-Cameron Merger Receives Unconditional Clearance from U.S. Department of Justice
http://www.slb.com/news/press_releases/2015/2015_1117_doj_slb_cameron.aspx
I also watched a blurb on CNBC that their land value decreased, so heads rolled.
It is crazy though that they are laying off all those people, but then buying back $10 Billion worth of their stock. Profits trump people with wages.
profits above the people…………….the 61 riches people in the world, should start looking over their shoulders……….jmho.
No one is suggesting anything, other than there use to be 300 plus persons, who owned 50% of the world’s wealth, that has now reduced to 61……and the number looks to be getting smaller.
Eventually there will only be only 1….. the richest man in Babylon…..
good one……
The Richest Man in Babylon (Just so nobody took that comment wrong – It’s a book)
https://en.wikipedia.org/wiki/The_Richest_Man_in_Babylon_(book)
I forgot that Napolian Hill put out a tape in the 70’s on The Richest Man in Babylon”, great listen to……
Napoleon Hill was an interesting guy. Think and Grow Rich is still a great read….a little weird in parts….but great wisdom is contained.
Ditto…….still have my paper back from 70’s Think and Grow Rich……..Basic as it gets.
Schlumberger sees no pickup in oilfield activity before 2017
http://finance.yahoo.com/news/schlumberger-says-no-more-job-151208433.html
Nasdaq closed almost negative. The strong rally faded away.
Oil could move to around 33 to 34 and then head down to test 30 and if that fails the whole market collapses again and oil head towards 25.
Well good ole’ Cramer is making analogies back to the 1986 Oil fall from $26.50 to $10 from Jan to March of that year.
I guess anything’s possible….
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Cramer – Oil could go to $10
Thu, Jan 21, 2016
http://finance.yahoo.com/news/cramer-oil-could-10-233409708.html
Cramer………….then oil is going up…………….he is a yahoo………..jmho
ok, $22.34 inflation adjusted is like 1986 oil at $10……thanks for the post……..claw
I agree that Cramer is a yahoo, and I rarely listen to him, but with all the $20 and $16 Oil calls, his $10 Oil call caught my eye and before I knew it, I was watching the video. Typically I just “do the opposite” where he is concerned….. 🙂
However, that segment was better than I thought it was going to be, and yes the inflation-adjusted figure for $10 Oil in 1986 is $22.34 in today’s terms. That may be an interesting parallel to watch for a pricing support level.
agree on the” parallel”………….I thought the same… ccf.
30 years of inflation only 120%. No way, my house, food, and every think went up way more. A house for example went from around 50k to 600k with similar location and structure.
Salary also went up a lot more. Remember people talk about 25k is good salary, now around 80k
Great point. I’m not sure how he figured the inflation adjusted difference from 1986 Oil at $10.25 to $22.34…… We’ll need someone with a bigger calculator……
He also made the point though, that this (inflation adjusted difference) may be way too sophisticated for the average investor that looks at the charts from Jan – March 1986 and sees the drop from $26.50 to $10.25. It just seemed like an interesting point also that this was during a period where the US dollar got slaughtered eventually going down by 40%.
MEEOOWWWW!!!!!
splat
ken….Now that’s NOT a dead cat bounce.
The Chinese have the best accountants and that is why the Gdp is always picture perfect. Look at what the accountants did with Sinoforest(TSX) where the forests and production vanished into thin air and the stock went to zero from the 30’s. Even the auditors got fooled because the documentation was so complete and proper thanks to the great Chinese accountants.
It should have been named See-no-forest.
Hear no tree’s.
See no forest….hear no trees….. Funny.
Funny, Paul. 🙂
Best,
LPG
The investors that got hurt the most with TSX were,
Sum Dum Guy and Sum Ting Wong.
??? what do these mean?
some dumb guy
something wrong
Hi Doc,
Hope all is well with you and your family.
You were interested in purchasing USO at 7-7.50, but the bounce in oil appears to have come before that price was hit. I’m guessing that takes 7-7.50 off the table (let me know if my read on this is off).
You said today that this bounce won’t last long or go far. If I may, how long and far do you expect this bounce to last in oil? Is it just a short bounce (day or 2) before it heads down to USO 7-7.50 numbers and then there is a better bounce at that point, or is this the beginning of a USO move into double digits before it begins to move back down? Thanks as always!
LPG, USO is not suitable as an investment because it suffers from contango. The price erodes every month when they have to roll forward their crude futures. You don’t want to hold it for several months.
PF,
Thanks for your comment re: USO.
I am aware of it, no worries – I always check what the ETF exposes to EXACTLY. 😉
Best to you,
LPG
I think is fantastic the Doc and LPG give up their time and share there knowledge for all of us listening on the show. Hats of to Al and Cory for finding two great gentleman
+2
Yep, I appreciate their time and expertise.
I don’t understand the charting that Doc does but it is fascinating listening to Doc’s thoughts and then seeing those transpire in the markets later on.
Here’s an interesting move by a smaller Uranium explorer CanAlaska. They are buying out Mitsubishi Corporation’s 50% interest in this property in the heart of the Athabasca Basin. That’s a good address and to have and they are relatively close to Cameco’s Cigar Lake mine.
Apparently they’ve already been in talks with other companies about this exploration project recently, and they want to get the drills turning again. This could mean they’ll be doing a JV on the property, or it also could mean CanAlaska may merge with a larger player. Something to watch on how it develops.
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CanAlaska and MC Resources Canada Ltd. Agree on West McArthur Uranium Project Buyout
Vancouver, British Columbia–(Newsfile Corp. – January 21, 2016)
Wonawinta silver project has gone bust…..yet again !!
I lost money in it a while back when Cobar went into liquidation.
It was taken over for SFA back then for what was spent on it by CCU.
But to no avail…..its gone under yet again.
Wonder who will take the plunge & pick it up this time?
….& for what price?….& can they afford to pick it up for pennies & mothball the project until Silver prices rise?
It might be something to keep an eye on?
Cheers.
Who owns the Wonawinta Silver project now? Is it Black Oak Minerals?
Southern Cross Goldfields Limited had purchased it and renamed it Manuka right?
It is hard to find any information on it. Can you point me in the right direction?
Thanks,
I found it. Black Oak Minerals is just the new entity that came out of Southern Cross Goldfields, and things didn’t work out for them….
It will be interesting to see who get’s in line next. Thanks for the info Skeeta.
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“Southern Cross Goldfields acquired the Manuka Silver Mine Project in central New South Wales in September, 2014, from PPB Advisory, the administrators managing the affairs of CCR (Cobar Consolidated Resources). The Manuka project was previously owned by CCR (Cobar Consolidated Resources) and was mined under the name of the ‘Wonawinta Silver Mine.’ The project is located in central New South Wales near the mining centre of Cobar.
Manuka Silver Project Back in Receivers Hands in no More Than a Year
In November, 2015, the Manuka mine has once again been placed in the hands of the same administrator, PPB Advisory, after resources at its nearby Mt Boppy gold mine were considerably slashed. The gold reserves at the Mt Boppy mine had been used as the basis on which Black Oak Minerals were able to service the money borrowed to develop both projects.”
ASX listed.
CCR mistakenly said CCU earlier (Cobar Consolidated ) liquitated Wonawinta flogged off to SXG for peanuts….name change later to BOK.
They are currently under administration now also.
This is a sizeable project…just not feasible at todays Silver price.
Someone will pick this up for absolutely SFA & if they mothball it for a future higher Silver price it maybe worth keeping an eye on.
Just my opinion.
Cheers.
Neat. I’m sure someone will buy it, and tuck it away for the pricing improves.
Let’s get First Mining Finance or Oban to go scoop it up and hold it for the right time.
BTW – Good thoughts on Zinc on the Rick A. blog. I remembered the reason Eric Coffin was discussing Zinc – he’s a big fan of Nevsun Resources. I just went and posted their press release under the Trevali info.
Ever upward!
I mentioned yesterday that Gold had changed character a bit and was receiving some safe haven bid when the markets got riled. When comparing charts of long term treasuries and the Yen, there was a definite correlation with Gold over the last 6 months during periods of time when the markets took it on the chin (Aug, late Sept, and from Dec to present).
Some commentators on yesterdays blog didn’t think Gold was getting a safe haven bid. Well, apparently Captial Economics just noted that they did see Gold starting to attract the safe haven bid again.
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Revival of Safe-Haven Demand Lifting Gold – Capital Economics
By Daniela Cambone – Thursday January 21, 2016
“While the turmoil in global equity markets is weighing on the industrial metals this month, gold is benefiting from a revival of safe- haven demand said research firm, Capital Economics on Thursday.”
“Gold and silver are benefiting from safe- haven demand on the back of the fall in global equity markets, exacerbated by the recent oil price declines and escalating tensions in the Middle East said Julian Jessop, commodity economist for the U.K-based firm.”
On a bullish note for gold, there are three key positives for the metal, Jessop said. “A revival of safe-haven demand is lifting gold prices; pick up in inflation in the world’s advanced economies and then the third is underlying strong demand from emerging economies and central banks,” he explained.
Gold Is “Interesting” Again; Play Against Equity Market – Dundee Economics’ Chief Economist
“The big issue is the equity markets – the Chinese equity market has tumbled– but to understand the relationship with gold, one has to go back to 2012-2013 when we saw a big move down in gold prices – this was predicated on a massive shift from gold to equity markets,” Martin Mureenbeld, Chief Economist for Dundee Economics, told Kitco News Thursday.
He added, “What we are getting now is some uncertainty about the market – that has made gold interesting again; it is a play against equity markets.”
LOOKS LIKE we could go out today at……………1100……..for the third in a row.
Excelsior,
Thanks for the info on the uranium companies yesterday. They look real good. So does NSU post from today. You da Man!
Thanks Chartster. Right back atcha!
So, anyone have any thoughts on the soaring oil price?
I stopped looking at several of my FTSE based oil companies early this morning – some of them were upp 10% yesterday and about 14% today. Ouch – what a miss. Oh well.
‘No end to oil rout as Saudi Arabia plays tough’
Kingdom’s oil chief says Saudis can withstand the price collapse, vowing to keep production at record levels
http://www.telegraph.co.uk/finance/oilprices/12113876/No-end-to-oil-rout-as-Saudi-Arabia-plays-tough.html