A look into the next bounce level for silver
Cory and Al break down the moves in the market today. We start with silver and take a look at where we think it will bounce. We then move into the sentiment in the gold sector. Finally wrapping up with comments on the make up of the boring US equity markets.
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Hi DC. If silver bottoms at the $18 level I could see it running to at least $22 (that is another resistance zone from back in 2014) then $23.30 after that. I think the $23.30 is most likely but the $22 number might take a little time.
Longer term – say 2-3 years – it will be much higher.
One other aspect to consider is the fight Ag is having with the 200 week MA (currently trading below). We need a couple weeks to close above it before we get that next nice strong move.
Thanks, Cory!!
OOOPS..Something does not work.
Tomorrow’s Mcalvany:
http://mcalvanyweeklycommentary.com/wp-content/uploads/ica2016-0824.mp3
Hasn’t Doc come home from Rio yet?
Palisade radio with Jeff Berwick
Jeff is always entertaining.
And wrong.
Well he was way wrong about the Shemitah, and Jeff is very opinionated on currencies, politics, and crypto currencies, but I get a kick out of at least hearing his unique perspective. I don’t agree with many of the folks that get interviewed, but I try to pick up insights from everyone. Cheers!
Fed Admits Another $4 Trillion In QE Will Be Needed To Offset An “Economic Shock”\\
In a Fed Staff working paper released over the weekend titled “Gauging the Ability of the FOMC to Respond to Future Recessions” and penned by deputy director of the division of research and statistics at the Fed, the author concludes that “simulations of the FRB/US model of a severe recession suggest that large-scale asset purchases and forward guidance about the future path of the federal funds rate should be able to provide enough additional accommodation to fully compensate for a more limited [ability] to cut short-term interest rates in most, but probably not all, circumstances.”
A history of monetary collapse, gold, and the Rothschilds in Europe.
CFS…The more one looks at the Rothschild’s, the more one sees.
It looks like GDXJ is heading for $46-ish next:
The DNC could fix an election, and then maybe not!
There may be a significant hedging opportunity that has built up over the last few weeks, based on cycles in volatility. In the last three years, there has been a significant spike in volatility in the summer, followed by a large move in volatility futures. There are three significant moves each year since 2014, in June-July there was a small spike followed up by two much larger spikes into fall. Then as the spike dwindled in the summer, there was six weeks until the larger spike developed. We are into six weeks past the largest summer spike so far, meaning a very large spike of volatility may occur soon, within days.
Agreed that the markets are due for some volatility soon.
Or, I look at it this way:
Wow. That is interesting.…
Thanks FS
Shall we call it the Jackson Hole take down…right on time ,,NY slam
Hole getting deeper, Hilly and Billy foundation getting a new shock wave
Back in ASM 60% @ 2.21 -38% retracement from 52 week high
I am adding here as well Marty. Nice.
Is that a Fib or not ceeee
Fib retracement target. Perfectly coordinated down into a Jackson Hole, and primed to pop into next week.
No manipulation there…..
NY Fed same game ,only getting more exposed
Just had a good trade in Uranium Resources (URRE) on the announcement that they were adding a Lithium project to their portfolio.
Uranium Resources Inc (URRE)
$1.90 Up + $0.58 (43.94% gain)
It brings up an odd feeling about this company though for the core position left in place. I’ve been trading URRE since the last Uranium cycle, and they have a long history as Uranium producers, explorers, and a good development stage company in the US. My interest increased in them when they acquired the Turkish in-situ Uranium company Anatolia Energy last year, due to the low costs. However, with the challenges in Turkey and the hype around Lithium, maybe this seemed like a good way to diversify some risk back on the US side of the equation.
Still, I’m not a fan of all these companies jumping on the Lithium train to follow the hype, and have mostly backed the new producers in Lithium like Galaxy Resources, NeoMetals, and Orocobre, and the near-term producers like Nemaska Lithium, Pure Energy Minerals, Lithium Amercias, and Critical Element Corp.
Regardless, here is the news:
____________________________________________________________________________
Uranium Resources Develops Energy Metals Business and Acquires Its First Lithium Property in Nevada
Aug 23, 2016
Brand new (URRE) Uranium Resources Corporate Presentation showing duel energy inputs:
As long as Frank is not involved ,might be a good trade
Ha! Yes oddly enough even though both Uranium and Lithium are involved, and neither Frank Giustra or Frank Holmes or Frank from Moscow was in the mix….. :0
I traded out to reduce exposure and take some chips off the table BTW because this move caught me out of left field and while there is a Lithium frenzy, I’ll be gradually fading down the position.
I’m actually a longer term bull on both Uranium and Lithium, but like to select my trades carefully in both sectors, as there is a lot of riff-raff to sort through. The thing is that Uranium Resources have a great history, great team, and have been survivors and thrivers in several Uranium cycles.
I left 60% of the position in place because I do respect them, and who knows, maybe they have the discipline to pull off being a dual-pronged company with Uranium and Lithium. It sounds zesty, but I’m curious to see if will work in the marketplace. Investors seem to have received the news with some Pomp and Circumstance….. so I sold off 40% at a nice profit. (I fell no shame in that but I trimmed strictly to reduce exposure into the strength until I have more information).
🙂
Lithium has a bright future.
Clinton Foundation says there were only 56 persons giving and granted access,….Since,about 86 persons control 90% of the wealth in the USA,…I would say that those 56 persons ….IS A BIG DEAL
Dang phone,placed in wrong area
Clinton Foundation nightmare……
56 PEOPLE do matter….donator to play,
As I mentioned in my above misplaced post ….Since 86 people control 90% of the wealth. Limited number of people with way to much control.
See CFS above post from zerohedge
Cory, what do your charts give you for the upside on Ag after it finishes bottoming?