Rick’s take on options expiration day for gold
Rick Ackerman kicks off today with his comments on options expiration day (which is tomorrow) for gold. While this day can cause some movement in the price the overall trend still takes charge and the trend right now has a lot of other factors driving it. These other factors include the narrative around what the Fed will do, a recent sell off in treasuries and a bounce in the US markets.
Click download link to listen on this device: Download Show
Paul L – I appreciate the market review. Thanks man.
Today has definitely been a reallocation day to me where I’ve placed a number of trades and rotated money between sectors. It’s been a wild day!
I have listened to too much noise from the media and had sold a lot of Cisco and Intel but bought back 2000 Intel yesterday as a part position and it is up 2.8%. I had expected it to head to the 200 day any day and today it exceeded that. I managed to buy only 500 Cisco back. Too many people had been negative and I had mentioned a few days ago we would head to the 50 day on the s&p again.
GDXJ is very close to confirming a double top that could sent it down about $5…
Yes, I decided to take a gamble and bought some JNUG at the end of the day…..
My thoughts are miners may bounce before the next move down.
Direxion Daily Jr Gld Mnrs Bull 3X ETF (JNUG)
105.65 Down 30.68(22.50%) 3:56PM EDT – Nasdaq Real Time Price
This trade actually ended up working out as JNUG has bounced nicely today. Looks like we have started to get the reversal.
I’m glad I bought a lot of GMX recently; it is bucking the red action today…
I’ve been noticing the prospect generators like Globex Mining, Eurasian Minerals, and Milrock Resources have been faring better than the miners. Thank goodness for profit dumpsters. 🙂
Gotta love ’em! Constantine and Strategic are up today, too.
Altius Minerals is more of a Base Metal Royalty and JV prospect generator, but even it is swimming against the current today and is up on the day.
Really despite the overall downtrend in miners today, there are still a few standouts holding their own and swimming against the current today for fundamental reasons:
Mines Management, Inc. (MGN) [this is due to the Hecla takeover]
0.8436 Up 0.2085(32.83%) 2:49PM EDT
Mexus Gold US (MXSG) [I’ve written this year about them, they just found JV partner]
0.0550 Up 0.01(22.22%) 2:41PM EDT
Sierra Metals Inc. (DBEXF) [great exploration results. I’ve been a fan for a while now]
1.2468 Up 0.1868(17.62%) 11:38AM EDT
Scorpio Gold Corporation (SRCRF) [good small Gold producer, Americas Silver spinoff]
0.0740 Up 0.0085(12.98%) 1:18PM EDT
Defiance Silver Corp. (DNCVF) [very exciting exploration play- thanks Bob Moriarty]
0.1658 Up 0.0158(10.53%) 12:16PM EDT
Americas Silver Corporation (USAPF) [fantastic & still greatly undervalued Silver producer}
0.2497 Up 0.0197(8.57%) 2:19PM EDT
Alkane Resources Limited (ALKEF) [Nice Gold producer, specialty metals developer}
0.14 Up 0.01(7.69%) 12:57PM EDT
Orex Minerals Inc. (ORMNF) [interesting exploration results on Silver JV]
0.46 Up 0.02(5.01%) 1:47PM EDT
Loving that Mexus, Excelsior. It will be one of the best gold stocks to own when all said and done. If not already. Only going for $.06!!! You are kidding me? With this JV, we are looking at $1-$2 in the future and I’m not even counting their other property.
Mexus was one of my biggest gainers in the miners rally, but I sold out of it and missed part of the rally before buying back in at a higher price. Yes, I have high expectations for where it will go.
That’s ok. You will still make money. We have a long ways to go yet. I heard about it from a lot of the ground floor investors who invested GORO a ways back who know their stuff. We’ve been in stealth mode for so long, but before long everyone will know about this gem. I’ve been accumulating this thing for years. Bought most of my shares sub penny with my lowest buy at .003 if you can believe it.
Agreed Ryan. Yes I do believe you because I bought my original positions between $.0035 – $.0071 in February. When it got up near $.04 I sold (too early it would seem)….
I actually sold the original position closer to $.03 at $.029 and then bought it back near $.045. Regardless, yes, I agree it has so much further to run from here. Honestly if it pulls back in June I’ll likely keep nibbling and adding to the position over time, but I have a number of other stocks I want to add to that are more established names at this point, so I’m interested in about 2 dozen companies in the Gold and Silver space to add to positions or acquire in the next few months.
Cheers!
Btw, have you noticed Typhoon lately? It has been very well-bid lately and has seen few sellers even on days like today.
The Fed minutes interrupted our melt-up but I do not believe that the rise was aborted. In other words, even if we get a decent pullback here, I do not think we’ve seen an intermediate term top. The miners are going higher.
Yes, after our discussions recently, I added a little more to my Typhoon position.
Thanks Matthew, we’ve been discussing this company for 4 years, and one of these days the rest of the market will realize what a gem it is. Maybe they already are starting to realize….
It is still my belief that either Agnico Eagle or Hecla will buy them out in the next 1-2 years.
AIGUEBELLE-GOLDFIELDS
Quebec, Canada
— OWNER(S)
51% Typhoon Exploration Inc.
49% Agnico Eagle Mines Limited
FAYOLLE
Quebec, Canada
— OWNER(S)
50% Typhoon Exploration Inc.
50% Hecla Quebec Inc.
MONEXCO
Quebec, Canada
TYPE: Gold – Copper – Zinc property
—– OWNER
100% Typhoon Exploration Inc.
RANGER
Quebec, Canada
TYPE: Gold property
— OWNER
100% Typhoon Exploration Inc.
SOMMET
Quebec, Canada
TYPE: Gold property
—– OWNER
100% Typhoon Exploration
Typhoon Exploration Corporate Profile:
http://explorationtyphon.com/en/wp-content/uploads/2016/03/Corporate-Profile-2016-EN-small.pdf
Regarding Mexus.. could not find a cdn. ticker.. I guess it trades in the US only?
Hi Ann. Yes, as far as I know there is only the US ticker (MXSG).
Click on that GMX chart again. It broke out and traded as high as 46% above the session low. 😮
Wow Globex took off today. Is this just pent up demand or did I miss a big announcement?
Thanks-Ex.
There’s no news that I’m aware of. Maybe an OBM shareholder finally did some due diligence on it and realized what a worthy profit dumpster it is. 😉
I’ve been adding to it for months.
Boy I tell ya the precious metals are really frustrating I thought that things had finally changed but it just seems as though it is just the same #!*& different day! They just keep falling through every support level.
Let’s see what happens. A retrace to the 38/50 Fib levels would be expected for both gold and the PM miners. Watching the HUI = 200 for today’s close.
The down % (RED) today, I have in my PF, is the same as several up days (GREEN) I had on the way up.
What goes up…..must come down……before it goes back up……
You’ve got a very great collection of miners in your portfolio from what you’ve shared on here in the past, so you’ll do just fine longer term. However, this is why I’m an advocate of trimming the winnings when conditions get very overbought (even if we are in a baby bull, which still remains to be seen).
May you be incredibly prosperous in your investments amigo.
P.S. – I couldn’t resist adding just a little more Avino Silver & Gold today when it got down to $1.40.
Nice – just trimmed that ASM trade a bit at $1.47. Every bit helps!
I stuffed a lot onto this chart but it shows that gold has good reason to go no lower than 1205-1200. Notice that “get me outta here” volume – that’s a sign that we are close to a low.
The EMV (Ease of Movement) indicator has also turned up.
That bit made me laugh with the “get me outta here” volume.
Yes, that was quite the “Exodus” volume on the long red candle.
You know Lewis, its possible gold gets to below $1000, at that point the discusion could be “does it go to $7/800”
Of course there will be people saying “time to buy” that never changes, they will use evey argument to convince people, and sooner or later, they will be right.
With gold, it might be an idea to remember we dont know how much is available, thats half the supply/demand equation.
Bob M reminded us we have a 70 year supply now, is there really a fundimental reason for gold to increase in dollar terms?
On the other hand, there is no rush like a gold rush, lol
Nothing like a rush for the exits either. The intermediate top in gold was a very easy call.
The gold community is hoping its just a correction. Maybe ! Very doubtful with presidential election and summer doldrums here.
As with oil in the latter part of 2014, The Club can do whatever suits them in the market place. Proof, they are in control and to tread carefully.
However, many get under the influence of greed and false hopes. Wash, rinse and repeat. PM’s are a proven fool proof means to lose a lot of money.
Ask a hundred people how they got wealthy. Not one in PM’s. Its all in proprietorships, professional occupations, real estate and anything other than PM’s.
Trader Jake wrote: Ask a hundred people how they got wealthy. Not one in PM’s. Its all in proprietorships, professional occupations, real estate and anything other than PM’s. Interesting story unfolding…
Did the Clinton Foundation Have a Storefront Accountant Like Madoff?
Markedtofuture, these are criminals who have a license and above the law to embezzle, defraud, deceptive wrong doings and practices, thieves that are above the law and even bloodshed/murder/homicides.
Good citizens would rather be poor without anything than participate in those atrocities.
Charles Ortel said he would be following up on it. http://charlesortel.com/
We have Washington who is all filled with foreign interests in treason against our once great nation and nothing but criminals who believe they are above the law.
The republic is finished. Its too late, they have taken over.
Trader Jake could you please define wealthy for us?
Sure, on an investment forum. Anything that has a monetary value.
Tangible, financial instruments, resources and anything that has value.
However, its not my definition.
I dunno about that, what about the guy that found the mine?
Your right tho, unlikely gold makes ya rich, tradeing shares maybe, but the purpose of gold is only to retain purchasing power, beyond that might be expecting too much.
How many find mines. Thats a good one though.
Trading shares very unlikely. Many reasons. PM’s are so volatile and unless your highly disciplined etc. etc.
What I do know for certain, precise accurate timing is everything buying and selling.
Then knowing when to walk away with your gains. Get out and stay out.
If you look at oil, the correction stands at at least 70% off the highs.
Gold at round number $2000 would ring in a low of $700. Thats being nice.
Gold was $252 less than 16 years ago. Thats really not a long time. Extremely oversold condition. Gold at $1230 today is not all the cheap. Its not a value. IMHO
Has not kept up with inflation because of all the manipulation if its any kind of hedge.
Its not a hedge. Everyone will argue in both directions for the cons and pros.
You pay your money and take your chances. Right now, it’s not oversold like in 2000 time frame and assets always go well below the means.
HUI was at 33 about 16 years ago. All and all HUI is not a tremendous value after this rally we just had.
Speculation in PM’s is high risk. Guys like Rule was wrong in 2014 and the rounding bottom was a myth. Gold shares collapsed.
$800 gold in 1980 and the bottom was in 2000 at around $250. 70% decline.
$700 gold is not out of the question. Back in the 80’s and even 90’s $250 gold was unthinkable. It still got there though. TELL ME I’M WRONG. It happened.
Incidentally, during those time frames in the 80’s and 90’s we had many bear market rallies. 20 years of bear market rallies in PM’s. These are extremely volatile assets and in all likely hood after a major top of $2000 gold, good odds we retrace 70%.
Agreed with jake
Only hope long term for metals in a quick execution to $5 silver and $500 gold this year or by 2017. Or else they probably just flounder around for years.
Patience is a virtue and greed destroys.
The mantra with the gold community is the yuan and the Chinese will prevail with gold one day and collapse the Banking Cartel Elite Western Imperialists.
When that day arrives, Americans be removed and slaughtered from their residences.
We are much better off with The Club. As bad as it is, anything to do with China will be a tragedy for all Americans if they rule the financial system.
Most likely we are going to war. Its all over money. Things never do change. The more they change, the more they remain the same. Power and money.
War drums are beating and thats not positive for gold. During war times gold was liquidated to pay for all the damages and costs in war. During all the major wars gold was flat to down.
We could be in for a war, the americans are sure pressing for one.
Looks likely. Not only that gold is not in a new bull market. Gold bull markets start off slowly. It was all short covering purchases and the banksters took advantage of the extreme oversold condition. The rise was almost parabolic. Those are conditions for more bear trends ahead and more fake out rallies.
Gold will not break above the mid 1300’s anytime soon. The move is over. Very high odds.
V of the Guerilla says WW3 not going to happen since Russia’s taken if off the table. Cheer up guys.
It’s good to recognize possibilities, try to gauge probabilities, and make reasonable preparations. Beyond that, why dwell on worst-case scenarios?
Good thoughts GH.
If you listened to the V Guerrilla last 5 years who is a gold promoter, you would have lost money.
All these South American countries will sell their gold. Venezuela can’t sell enough right now.
The Club knows how to keep gold bottled up for decades.
Cisco price target raised by Goldman to $35 from $32.
Harry Dents said today $700 gold in 2017. He read my post today.
http://economyandmarkets.com/exclusives/harvard-economist-warns-700-gold-by-mid-2017/?z=473165
Fed rate hikes and election. Summer doldrums. The Club Banksters will prevail and they will do exactly whats planned for gold. Last time it was oil.
Also, silver is lagging gold prices significantly. If I wanted to speculate and buy thinking we are at a correction silver would be my financial instrument to speculate in.
With gold up where it is today and silver prices down where it is, thats a negative indicator.
TJ – Silver is actually outperforming gold this year – particularly since March when the silver-gold ratio bottomed. Silver gained 20% versus gold in less than two months and is now getting ready to add to that gain.
Thanks Matthew, over 3 years though silver has lost ground against gold. Also, this might be just a correction but there are many cons and pros as you know.
I do suspect a deep correction because summer is here and elections in the US.
I could not help to notice the sell signal a week or so ago. Quite obvious. Right now I’m following geopolitics and this NWO unfolding. It just gets more intense as time moves into the future and unfortunately few have the understanding of whats really to come. The great majority will take everything out of context of reality and ignore all the high leverage in the system and everything else MSM will not report on and be completely confident complacent regarding all the perils we face. Because I want to know if SHTF and want to be mentally prepared for such an outcome. A high priority.
This rabbit hole is no deep with the NWO, its worse than the scariest scifi movie horror flick. Whats really going on behind the scenes would blow your mind apart. Really bazaar and unthinkable the protocols they plan on using. .
The gold rally did surprise me how far the gains faired. Very impressive and the miners were extremely desperately oversold. Also, picking companies can do well even in a flat to slightly down market. Even in the 80’s gold shares were still rocketing higher. Gold was just holding and flat to down.
I still believe the best strategy is to trade it, banking your gains. One main reason why because the criminals have the whole playing field now and anything goes. So far, its working the best just trading it. Anyone caught holding in these dramatic sell offs is not doing very well. Its bad news !!!!
This puts the fake rally in perspective. Accidentally stumbled on this article.
Why is silver such a dog. Its 20% off the highs where gold was a few years ago at
the same price gold is today.
This is no bull market. Just in the 80’s alone there was 10 years of fake rallies.
http://thedailycoin.org/2016/05/24/precious-metals-fake-rally-ends-hostage-markets-return/
Central Banks, for every ounce of gold they buy, they can sell 300 contracts or more against it. The criminality has progressively gotten much worse. They are taking advantage of it because no one is charged and its all done through the bullion banks.
All they do is pay a small fine and its business as usual. Investors are not going to take possession either and they keep selling massive amounts of paper capping prices.
They can drive the price down and when its extremely oversold when the shorts are convinced its going down further, they make a killing in profits running it in the opposite direction.
Its all a big game. They will continue to sell gold and drive the price down until they have completed their objectives.
You want to know what that is. Keeping people from ever touching gold again or having anything to do with it. 97% or even higher walk away losing their money.
Gold speculators love to lose money on options. The banks just can’t sell enough of those kinds of contracts. The gold miners can be as corrupt as the bullion banks too.
Diluting shares and selling hedges to the bullion banks creating a win win for The Club.
The Club wins big.
Jun E-mini S&Ps (ESM16 +0.34%) are up +0.29% and European stocks are up +1.35% on reduced economic concerns after German Q1 capital investment rose at the fastest pace in 2-years. European stocks also received a boost after BNP Paribas raised its Eurozone 2016 GDP forecast to 1.5% from 1.3%. A slide in EUR/USD to a 1-3/4 month low also gave European exporter stocks a lift as well as the weaker euro boost exporters’ earnings prospects. On the negative side, German investor sentiment unexpectedly fell, according to the May ZEW survey. Asian stocks settled mostly lower: Japan -0.94%, Hong Kong +0.11%, China -0.77%, Taiwan -0.52%, Australia -0.44%, Singapore -0.60%, South Korea -0.92%, India +0.30%. Japanese stocks were undercut by yen strength that weighed on exporters, while Asian stocks as a whole fell back on Fed rate hike concerns after San Francisco Fed President Williams on Monday said that two to three rate hikes this year are still “about right.”
The dollar index (DXY00 +0.19%) is up +0.17% at a 1-3/4 month high after recent hawkish Fed commentary boosts speculation of a Fed rate hike next month. EUR/USD (^EURUSD) is down -0.33% at a 1-3/4 month low. USD/JPY (^USDJPY) is up +0.36%.
Jun T-note prices (ZNM16 -0.06%) are down -1 tick.
German Q1 capital investment rose +1.8% q/q, stronger than expectations of +1.4% q/q and the biggest increase in 2 years.
The German May ZEW survey expectations of economic growth unexpectedly fell -5.8 to 6.4, weaker than expectations of +0.8 to 12.0.