Some divergences in the markets today
Chris Temple and Doc help us wrap up the markets this week. We saw some interesting moves with copper moving up but gold selling off and the USD gaining traction. Plus the S&P and Dow staged a comeback to close the day slightly up. What does it all mean for next week, the last week in April, listen to find out.
Click download link to listen on this device: Download Show
Yes, and then it terminated. That cup and handle was pretty respectable I thought and ran just about as far as one might expect if you compare it to similar patterns and judge the height of gain off the bottom of the handle.
Lewis, the weekly chart looks just fine but the daily could go either way. However, with the FOMC meeting on Tuesday and Wednesday, I expect some serious selling pressure for most of next week. They could knock silver down a dollar or more without hurting the bullish weekly chart.
Silver did well today considering…
did the 8 year cycle in gold bottom? http://news.gold-eagle.com/article/did-8-year-cycle-gold-bottom/177
So anyway…..gold, silver, GDX, GDXJ, GLDX and the HUI have all failed to break out of their bear market trend patterns and currently remain inside the channels as seen from a five year chart. Conveniently the Yen dropped hard and broke below 5 prior peaks indicating more downside lies ahead. It does not look bullish for metals right now especially as the dollar is rising as both gold and silver have topped.
Wellgreen Platinum Ltd. (WGPLF) was up over 15% earlier today, but tapered back down in the afternoon to close at $0.2298 Up $0.0148(gain of 6.88%). Very likely due to their encouraging press release. It is interesting that lately drill results have been getting noticed again in the miners of all stripes PMs, PGMs, & Base Metals.
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Wellgreen Platinum Announces 2015 Drill Results at the Wellgreen PGM-Nickel Project
VANCOUVER, April 22, 2016
For those not familiar with this exploration and development story, this has been a Nickel deposit that was well know 40-50 years ago, and has been a explored by a few of the Majors, but was spun out and purchased by the company now called Wellgreen Platinum. With a fresh set of eyes, they realized that in addition to the Nickel, Copper, and Cobalt that there were large quantities of Platinum, Palladium and even Gold. In this case the deposit grades (huge) and the diversity of credits and concentrated values of the Platinum Group Metals make this a very interesting mineral deposit to follow.
Many of the PGM stocks had reached higher levels over the last few weeks and have started heading back down, but there are some interesting developments going on in this space and it is hard to find any coverage of them by analysts. I’ve done very well trading Platinum Group Metals (PLG) and Stillwater Mining (SWC) since the end of last year, and just wondered if anyone else has any companies they are liking in the PGM sector?
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3 month Composite Chart in the Platinum & Palladium stocks (most of these companies are polymetallic but they all have some nice exposure to the PGMs):
*These gains were better over the last few weeks but you get the general idea.
Largo Resources – up 205.56 % !!
Platinum Group Metals – up 175.77 % !
Anglo American Platinum – up 142.16 % !
Impala Platinum – up 133.64 % !
Stillwater Mining – up 117.76 % !
Atlatsa Resources – up 90.91 %
Wellgreen Platinum – up 67.88 %
North American Palladium – up 51.71 %
Eastern Platinum – up 30.56 %
Polymet Mining – up 24.66 %
For any investors interested in the PGMs as part of your metals mix here’s the only companies that I’m aware of with significant PGM expsoure. If anyone else has any other suggestions or companies they like in this sector, then please post them below:
PGM Stocks Symbol Last Price
ANGLO AMERICAN PLATINUM LTD AGPPY $4.48
ANGLO PLATINUM LTD AGPPF $28.95
AQUARIUS PLATINUM LTD AQPBF $0.18
ATLATSA RES CORP ATLRF $0.04
EASTERN PLATINUM LTD ELRFF $0.75
IMPALA PLATINUM HOLDINGS LTD IMPUY $3.86
JUBILEE PLATINUM PLC JUBPF $0.06
KENMARE RESOURCES LTD KMRPF $0.00
LARGO RESOURCES LTD LGORF $0.40
LONMIN PLC LNMIF $1.00
NKWE PLATINUM LTD NKWEF $0.04
NORTH AMERN PALLADIUM LTD PALDF $4.25
NORTHAM PLATINUM PROPERTY LTD NMPNF $3.23
NOVX21 INC PORMF $0.02
PLATINUM GROUP METALS LIMITED PLG $3.13
POLYMET MINING CORPORATION PLM $0.91
SIBANYE GOLD LIMITED SBGL $14.40
STILLWATER MINING COMPANY SWC $11.65
SYLVANIA PLATINUM LTD SLP.L $6.75
WELLGREEN PLATINUM LTD WGPLF $0.23
ZKB PALLADIUM CORPORATION ZKBPF $177.35
PGM – Funds and ETFs
PHYSICAL PALLADIUM SHARES PALL $58.25
IPATH BLMBRG PLATINUM SUBINDEX TR ETN PGM $19.18
PHYSICAL PLATINUM SHARES PPLT $97.39
E-TRACS UBS LONG PLATINUM PTM $10.81
SPROTT PHYSICAL PLATINUM & PALLADIUM TRS SPPP $6.88
After glancing at your list above, here’s some just off the top of my head Excelsior.
Platina (PGM), IIRC their scandium resource has platinum credits? Can’t remember if they are significant or not?
Panoramic (PAN) whilst mostly a nickel/copper miner. They have plat/pall projects also I believe.
Condoto (CPD) they have a gold/platinum mine down in Colombia.
Cheers.
Thanks Skeeta. Very much appreciated!
Panoramic Resources is actually one that I follow, and they’re listed on my PGM watchlist in my trading platform under their OTC (PANRF), but they are not on my saved spreadsheet. Good catch, and I need to double check some of these companies on this list anyway.
As for Platina and Condoto I’ve never heard of them. Very cool man. This is the very reason I like to be on KER every day, because there are so many interesting companies I find out about from other contributors such as yourself.
Have a great weekend!
what about aquarius platinum aqpty @ .33/western areas wnarf @ 1.60/nkwe plat. nkwey @ .73/ impala plat impuy @ 3.86
Yes Aquarius platinum is on the list above, but I had the ticker AQPBF $0.18, but apparently the symbol just changed to AQPTY last week. (man, I’m way behind the curve 🙂 )
DW Jones – I appreciate the heads up on the ticker change.
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*Symbol for Aquarius Platinum Ltd. (AQP.AU) Now AQPTY *
Friday 04/15/2016 05:08 PM ET – Dow Jones News
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I have listed NKWE PLATINUM LTD (NKWEF) $0.04, that last trade Mar 22, 12:17PM EDT
As for the NKWE PLATINUM LTD AD (NKWEY) $0.7290, it last traded Aug 4, 1:04PM EDT
> [as a general rule of the thumb on OTC stocks the ones ending in “F” are generally the primary, and the ones ending in “Y” are often depository receipts or place holders during a name change or reorganization]
Yep. Had Impala listed above – IMPALA PLATINUM HOLDINGS LTD IMPUY $3.86
They are definitely players in the PGM space.
I’ve never heard about Western Areas (WNARF). It looks primarily like a Nickel company with a PGM credit, and those are typically some of the best like Norilsk Nickel (NILSY) in Russia. One of the largest PGM sources on the planet, so I guess they should be added to the list as well, but I have them in with Base Metals.
Thanks DW Jones.
OK – here is the revised list with everyone’s input:
PGM Stocks Symbol
ANGLO AMERICAN PLATINUM LTD AGPPY
ANGLO PLATINUM LTD AGPPF
AQUARIUS PLATINUM LTD AQPTY
ATLATSA RES CORP ATLRF
CONDOTO PLATINUM N.L. CPD.AX
EASTERN PLATINUM LTD ELRFF
IMPALA PLATINUM HOLDINGS LTD IMPUY
JUBILEE PLATINUM PLC JUBPF
KENMARE RESOURCES LTD KMRPF
LARGO RESOURCES LTD LGORF
LONMIN PLC LNMIF
MMC NORILSK NICKEL PJSC NILSY
NKWE PLATINUM LTD NKWEF
NORTH AMERN PALLADIUM LTD PALDF
NORTHAM PLATINUM PROPERTY LTD NMPNF
NOVX21 INC PORMF
PANORAMIC RESOURCES PANRF
PLATINA RESOURCES LTD PTNUF
PLATINUM GROUP METALS LIMITED PLG
POLYMET MINING CORPORATION PLM
SIBANYE GOLD LIMITED SBGL
STILLWATER MINING COMPANY SWC
SYLVANIA PLATINUM LTD SLP.L
WELLGREEN PLATINUM LTD WGPLF
WESTERN AREAS NL WNARF
ZKB PALLADIUM CORPORATION ZKBPF
PGM – Funds and ETFs
PHYSICAL PALLADIUM SHARES PALL
IPATH BLMBRG PLATINUM SUBINDEX TR ETN PGM
PHYSICAL PLATINUM SHARES PPLT
E-TRACS UBS LONG PLATINUM PTM
SPROTT PHYSICAL PLATINUM & PALLADIUM TRS SPPP
Passover …….some of the hot money left early………
The laggard of my junior portfolio popped 38.3% Friday,
Its still the slow sleeper of the portfolio though (its only up 73.1% since I purchased).
But its good to hear their Ball Mill problems are finally over & production will be able to ramp up in the near future.
Cheers.
Which company is having the ball mill problems that is back on track?
Excelsior,
its Cleveland Mining (ASX.CDG)
here is Fridays announcement regarding the Ball Mill installation (& the problems they encountered with the old one)
Cheers.
http://clevelandmining.com.au/wp-content/uploads/2016/04/210416.pdf
Cool. I literally have them written down on a post a note on my desk from when you mentioned them once before (along with Crater Gold and Alkane Resources). I went out and acquired a small position in Alkane Resources once I realized they were getting no love and had produced about 69,000 ounces of Gold. I had Alkane on my Rare Earth’s list, which is how they used to market themselves, but now they are saying they are a Zirconium company ??? While they have a bit of an identity crisis, I believe that they are secretly a Gold company at present because there are only about 50 other Gold companies producing more gold than Alkane Resources at present. In my opinion, they should re-brand as a Gold company since they are producing so much of it, and spin out the other assets.
I will say that I’ve been following their exploration of the other polymetallic and specialty metals assets since the REE bubble, and they are extremely intriguing and diverse. I guess their plan is to grow organically and fund the development of those specialty metal deposits with their gold production revenues. That works too, but it also may be why nobody in the Gold market realizes that Alkane is a nice little gold producer.
As for Cleveland Mining, I haven’t had time to research them yet, but appreciate the link to the press release. It’s at least going on my small producers watch-list right this minute. Thanks again for mentioning all these interesting companies Skeeta.
After poking around on their website, Cleveland mining has been waiting to get this 2nd larger ball mill installed since early 2015, so it does seem like they’ve crossed a substantial milestone as a company for improving processing and milling initiatives.
Congrats on the pop in share price Skeeta!
So now we know where the hot money is really coming from that has driven this three month long commodity boom. And the answer you are all dying to hear is that it is China where ZeroHedge just reported that speculative interest in resources is up 17 times in China……….IN ONE MONTH!!!!!!!!
It is already being called a speculative frenzy as traders shift from property and stocks into commodities. Man, those guys know how to blow bubbles. Just keep it in mind because what goes up usually goes down hard. But this is truly impressive. A 17X burst of spec money in just a month.
That’s right folks…..one freaking month!
Here are a few excerpts from the article:
“There is no correlation between the explosion in interest in Chinese commodity futures and any Chinese economic activity (and it should be a reminder to all who gaze lovingly at the commodity charts of the last decade that credit, rather than true demand, can be the most influential factor in financial markets). Volumes have increased 17 fold in a month. The economy has not. This is simply another speculative excess that will probably (already has) run way beyond fundamentals. It is probably creating a false picture of global demand for commodity stocks of all types, which themselves have rallied far beyond their earnings potential”.
“The frenzy echoes the activity that fueled China’s stock market last year before a rout erased $5 trillion, and follows earlier bubbles in property to garlic and even certain types of tea”.
“These guys are going nuts,” Hong said. “Leverage exaggerates the move of the way up, but also on the way down – much like what margin financing did to stocks in 2015.”
“There’s a lot of liquidity and there are people looking for opportunity,” said Ben Kwong, a director at brokerage KGI Asia Ltd. in Hong Kong. “Investors are just boosted by recent rebound in those commodity prices and it’s speculative behavior.”
“The market is moving so quickly, yesterday felt just like the stock market in June last year before the crash… I think how it goes up, that’s how it will come down.”
And here is that article:
The Stunning Chart Showing Where All The Commodity Gains Have Come From — ZH
http://www.zerohedge.com/news/2016-04-22/stunning-chart-showing-where-all-commodity-gains-have-come
Thanks for the post on Chinese speculation in commodities.
Sure thing. Amazing isn’t it? I swear those guys are intent on blowing up every market they touch and now that includes commodities and resource companies too. This sure explains a lot about why some of the big names exploded in value the past month. But there is a warning embedded in this story too because as the article mentioned this is almost all built on massive leverage and that is a big double edge sword.
They definitely are blowing market bubbles all the time. However, the article made me take pause and consider that, at one point, the US investors may flee from traditional stocks and reallocate outflows from overbought equities and seek out other sectors like Commodities to put their money. We may see more of that money movement globally over the next few years.
Chinese hot money is not over yet…………..if, they are leaving real estate…….the bubble is just beginning…………..new game in town…..jmo………..OOTB
Not surprising that the HOT Chinese money is buying the miners……The Chinese govt. already has all the phyz they need…………..jmho
The downside is that their trading behavior over there is to both panic-buy on up moves and panic-sell when things go down. It is a monster herd behavior. So if the buyers, many of whom are farmers and housewives, suddenly see their accounts slipping in the coming weeks we could anticipate a huge bust in resources to mate up with the spectacular recent rise.
This could get very ugly.
The behavior, might be enough to JUMP START PM market, ….Just like the crazy buying in real estate in Vancouver , and some of the dumb money followed, and thought it was a boom market….the Canadian jumped in and participated….some made money and some got chased out.
Sure, if you like a jump start with 220 volts direct into the casualties heart that kills the patient. I mean Jerry, the way they go at things over there it all becomes distorted so fast. That’s what a speculative frenzy is all about. They never make sense even though the gains can be terrific while it lasts. But the hangover requires medical care if you get caught on the wrong side.
Looks like one needs a behavioral science degree to see what comes next……… 🙂
We need that great big BUBBLE ……to exhaust everyone………… 🙂
The Chinese are very aggressive and have a need to excel , or be left behind, ….The though of 1.3 BILLION people……..which can never have enough, might push the PM market to the next level……jmo
I think OWL………..needs to get a CHINAMAN on the show……and get their take on the subject..
An understatement, Birdman.
Yes Chris, it is my worry right now. Those guys over there are trading like its 1928.
Halliburton……..fires ONE THIRD OF IT’S STAFF…………..zerohedge
Whether you love him or hate him, I think it’s always worth checking out what Jordan is up to and his charts. He is expecting a short term pull-back in miners, but still thinks the new bull market is underway and has some interesting points about the 400 day moving average for the bigger picture, and the 50 day MA as support for any pullbacks. Lastly he touches on sentiment in the PM sector.
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Precious Metals Video Update: Gold Stocks Reverse but Will it Last?
Jordan Roy-Byrne Originally posted April 20, 2016 – reposted on Palisade yesterday.
http://palisaderadio.com/precious-metals-video-update-gold-stocks-reverse-but-will-it-last-42016/
Yellen Will Be Coming Round The Mountain When She Comes
by Gary Wagner – April 22, 2016
(Weekend Update VIDEO)
http://thegoldforecast.com/video/yellen-will-be-coming-round-mountain-when-she-comes
One thing I don’t understand about Gary Wagners trend-lines is that he often draws from an intra-day high to a closing high on another peak or trough. I’ve always been of the belief that you draw from intra-day highs/lows to intra-day highs/lows, or you go with drawing trend-lines from closing highs/lows to closing highs/lows. I don’t understand when people chart from an intraday high to a closing high, or a intra-day low to a closing low. Does that make sense?
Does anybody have a thought on this topic of how to draw trend-lines?
He did give out some good advice to traders about how Doji candles can mark consolidation zones to run higher, or topping patterns. I like Gary, and have been following his technical analysis since 2010, but sometimes I differ on his Elliot wave analysis wave count, or in this case his trend lines. He is one of the best Japanese Candlestick analysts I’ve seen though. Because he uses a confluence of indicators, his Guru analysis is probably only 50-55% 🙂 (but I always check out his thoughts)
Silver Stocks ETF: No Rest For The Champ
Morris Hubbartt – Apr 22, 2016
Super Force Precious Metals VIDEO Analysis
Here’s the full Morris Hubbart Article with many of the Charts he covers, but each of the Blue links is also a video segment. I may post a few of the videos independently below this for people to lazy to click and read.
US Bonds, Dollar & Stock Market Video Analysis
Morris Hubbartt – Apr 22, 2016
Super Force Precious Metals VIDEO Analysis
http://www.superforcesignals.com/video/2016apr21dow/2016apr21dow.html
Gold & Silver Bullion Video Analysis
Morris Hubbartt – Apr 22, 2016
Super Force Precious Metals VIDEO Analysis
http://www.superforcesignals.com/video/2016apr21goldsilver/2016apr21goldsilver.html
Precious Metal ETFs Video Analysis
Morris Hubbartt – Apr 22, 2016
Super Force Precious Metals VIDEO Analysis
http://www.superforcesignals.com/video/2016apr21etfs/2016apr21etfs.html
Super Force Juniors Key Stocks Video Analysis
Morris Hubbartt – Apr 22, 2016
Super Force Precious Metals VIDEO Analysis
Companies covered: Gold Fields, Endeavour Mining, Golden Star, Seabridge, Torex Gold, and McEwen Mining.
http://www.superforcesignals.com/video/2016apr21sfj/2016apr21sfj.html
The GDX and GDXJ “Channels of Fun” are cracking me up on that Morris Hubbart video 🙂
GDM just had its best weekly close since September, 2014 and closed the week up 2.78% despite today’s action in the metals. It also has two weekly closes above the 618 Fibonacci retracement level of the downtrend that began two years ago.
GNX is looking great:
Gold has now tapped the bear-to-date “six one eight” Fibonacci fan line twice. The third time’s a charm…
Endeavour Mining, True Gold Shareholders Clear Way For Merger
Friday April 22, 2016
If I am looking at the weekly chart of silver correctly didn’t the cup & handle get activated?