A buying opportunity for gold stocks is right around the corner
Doc and I share some insight on the level they are watching for gold to turn and a specific level that gold should not fall below. Outside of technicals we look at potential catalyst to drive gold and PM stocks. Overall by the end of October through November we are looking to another good buying opportunity.
Click download link to listen on this device: Download Show
http://stockcharts.com/h-sc/ui?s=GDXJ
The physical metals have flirted with overbought, the first time it happened there was an increase in volume in the stocks, that has persisted.
http://stockcharts.com/h-sc/ui?s=GDXJ
(Look at volume and RSI)
I think the metals may go sideways for a few days, but the stocks are leading the physical
And will drift up until the metals catch up. Many of the stocks have cashed up and once their warrant holding period is over, there will be less selling to depress prices. Combine this with Diwali and Chinese buying seasonal effects, implies an upward move before year end, not after.
But what do I know?
Mexus will lead the pack once again, IMO. From Today:
CARSON CITY, Nev., Oct. 11, 2016 (GLOBE NEWSWIRE) — Mexus Gold US (MXSG) (“Mexus” or the “Company”) President Paul Thompson stated today that the outlook for the company has never been better. The company is nearing production having very little debt which is unheard of in the mining industry. The push towards production with the company’s joint venture partner, MarMar Holdings, continues as scheduled at the Santa Elena mine.
Mr. Marco Martinez, CEO of MarMar, stated that the project will start the gold leaching recovery process with a target of 10,000 tons on the leach pad. In addition, he estimates that the initial leach will yield 1 to 1.5 grams of gold per ton with a recovery rate of 76%. The initial pour has the potential to produce 250oz to 360oz of recovered gold which would result in the joint ventures initial start-up costs for this project being paid off. MarMar’s plans are to gradually increase production with the ultimate goal of reaching 10,000 tons per day within 8 months of the first pour. Added Mexus CEO Paul Thompson, “Mexus will be in a positive cash flow position rather quickly once we produce as anticipated which should ultimately lead to significant returns for our shareholders going forward
+1
I hope you are right CFS. I loaded the boat on First Majestic on Friday, but will be as happy as can be to pick up some more if it does it Doc’s targets $5-$6. Not getting cute this time around on AG as I missed the boat last time.
These stocks are all yoyos. They go up, they go down, they go nowhere.
First Majestic, the CEO is a typical pumper, the stocks in the toilet again, flush it down the drain.
Lots of money could be made in other sectors while gold and silver go nowhere
James, I have no financial interest in First Majestic but I don’t think your comment about the CEO is fair at all. As far as I know, he has never sold a share, so he has endured a lot of pain (on paper) alongside the average shareholder.
Totallly agree Matthew. Keith Neumeyer is both philanthropic as well as a star performer
James T.L. What sectors & stocks do you like ?
Xriva
Awhile back it was time to go to cash, to wait out the drop in PMs.
Potshares have done better than triple+ since then.
Much wiser than sitting in cash waiting.
Potshares “should” imo increase at least until its legalized in Canada.
Clinton Foundation is most likely backing wacky weed revolution.
Canada and Colorado is closer than Afghanistan
They intend to cover the deficit spending from pot taxes. imo
In Canada anyway.
It should create an employment boom as well.
No smoking on the job will take on a new meaning…
I am curious why everyone seems to formulate their views from what they hear on the “alternative” media. If Alex Jones and others say “JUMP”, then everyone seems to say “HOW HIGH?”
Likewise, if “credible” news sources like the Drudge Report say “The Clinton Foundation does such and such” then everyone seems to immediately jump on the bandwagon and start regurgitating what they just read or heard.
Doesn’t anyone think for themselves anymore?
Bentnail, thinking for one’s self, when done right, results in the ability to know when bad guys are telling the truth and when good guys are wrong.
Propaganda gets tailored to every audience, so, for maximum effectiveness, it must be laced with plenty of truth in some cases. In fact, you should be open to the possibility that some results are best achieved using nothing but the truth. It’s like a game of chess and things are often the exact opposite of what they seem.
No jumping or regurgitating here….I made my statement from years of observation, if you are directing the statement in my ….. 😉
Dropped call….add … direction
Doc,
Do you have any thoughts on FCX re your infrastructure spending thesis? Is it near a buy price now from your technicals or should we wait a bit longer?
Thanks.
Bob, I would be careful with FCX here. Technically, it’s struggling right now and is in danger of not maintaining pricing above the 200 week SMA. It’s in a narrow trading range and if it breaks down, will move down for awhile.
Thanks Doc.
Going higher is my bet. Gold that is …..silver is ready to go past gold *% wise …
71 to 1..ratio , Come on think about it.
Gold and silver are going higher
https://m.youtube.com/watch?v=l_vOlOzNAYs&feature=youtu.be
SRSRocco report…….important…..!
Report almost put me to sleep 😉
I can tell you this,….silver does not stay on the shelves very long in my area … The street people are buying it all. METRO INDY.
Political off topic or not:
Leaked Email Expose Tight Link Between CNBC and Clinton Campaign. Zero hedge
Chelsea did get that $600,000 internship ,/job …hummmmmer
This is a MUST LISTEN SRSrocco Report
https://m.youtube.com/watch?v=l_vOlOzNAYs&feature=youtu.be
says the same stuff everyone else is.
Price Support Pivot Point Resistance
17.6410 17.3810 17.6430 17.9050
Silver is go DOWN.
The new range will be between 17 and change and 12.
Silver is a scam.
RSI, MACD mean nothing. They are used by the PUMPERS.
Everyone, I mean everyone on this board bullish silver, or have been bullish silver are dead wrong. The PRICE TREND PROVES THIS.
the area of price balance has been down for 20 years, breakouts notwithstanding.
You can hold on to hope but look reality right in the face and accept it.
The technicals are obvious, do you know music?
One, two, three, down, one, two, three, down.
See it for yourselves on the charts, one, two three, down…
And ps the dealers are in on is scam as well.
The premiums they keep high, but the buy backs are less.
Don’t think it is only JP Morgan, Goldman and the buys.
The bullion dealers with massive inventory are in on it too.
I’ve mentioned this for years.
It is kinda funny when they say how valuable it is but have it on sale.
OFF TOPIC
I hear the Trump tape is just one of many.
The one that was released was sat on for 4 days and deliberately released to have the maximum effect on the debate.
I had been hoping that Mike Pense would become the candidate, but I think Trump’s ego too great, and that he is too self-centered to drop out. He clearly has no guiding principles; which is why he flip-flopped so often in the run up. Hillary is clearly much more intelligent than Trump, but her guiding principles are greed and the ability to lie with ease. I worry for the country.
Guarantee it. For every email dump Assange sends out Shillary will release a tape of Trump.
But dang, look at Bubba’s face when he saw the women he raped sitting across from him at the debate.
Hey, that’s how everyone on the left looks when they come face to face with an inconvenient truth – and for them, all truth is inconvenient. 😉
It tells me what he’d do to them if he could….
Good thoughts from the good Doctor today. Much appreciated Doc & Cory.
P.S. I agree that a break below $1207 (pre-Brexit low) or the round $1200 would be psychologically damaging to the PM metals sector, and I’d prefer we don’t see that. The market doesn’t care what we’d like to marches to its own drum. Until then I’d like to see if Rick Ackerman’s $1216.50 mid-point pivot holds, or the 50% retracement at $1210 holds as downside support.
If Gold finishes this correction before getting to those levels, and starts heading up to new recent highs, then it would be quite encouraging indeed.
Right now Gold is at $1257, so there is a nice amount of wiggle room for the yellow metal to consolidate above those support levels and build a base for the next leg up.
It should be very interesting to see how things go tomorrow in the PM market with Canadians back from Thanksgiving, and Americans back in front of their computers after having Columbus day off. All hands on deck…..
Gobble Day ..no wonder it is slow
Columbus looking for some feathers to pluck.
Well since it’s a slow day…… Here’s a Clive Maund article to review. Ole Clive has been all over the map this year, but I can’t resist reading his articles.
THE GROWING THREAT OF A DEFLATIONARY MELTDOWN AND A BIG DOLLAR RALLY…
Clive Maund – October 8th, 2016
That S&P Head & Shoulders chart looks like a doozy.
Exactly b.
Let’s face it, there are some stocks that are just stocks, they are companies, good or bad and they make or lose money without effecting (or is it affecting) not much else.
Gold and silver have a much more important role, and because of that their is a lot more at stake based on their price.
If Chipotle goes bankrupt are they going to take down the world? No.
If Verizon goes belly up, does the world crash? Of course not.
And these a fairly big companies, their are a lot of much insignificant companies that strictly exist in their own world.
Gold and silver are different. They play important roles in global economies.
For that reason they are manipulated like no other.
And the dealers are in on it!
Gold
Price Support Pivot Point Resistance
1,255.51 1,251.05 1,259.58 1,268.11
Clive Maund, talk about fear porn and flip floppping.
For weeks he pounded the table about thE COTs. Then when gold ignored his call and shot up $350 bucks he disappeared for a few months. Now he is back withvyet another ominous chart complete with straight down red lines extrapolating where it could go.
Another usual suspect.
James,
Clive is like most analysts,he made some good and some bad calls.
Here is a good one,
http://www.clivemaund.com/article.php?art_id=3099
CM never saw a H and S top he didn’t like.
Trouble is most them weren’t H and S.
This is why technical analysis gets a bad wrap.
Where is Bo Polny when we need him?
If I take the year 2016 and add up all the numbers I get 9.
9 is the highest number in the universe.
This means the stock market has hit it highest point.
Now If I take the 2 for the epoch, add the 2 to the 6 to get 8, then include the 9 we come up with 289, this is the 289th day of the year which is October 16th.
THIS IS BLACK MONDAY!
Sell everything there is going to be a crash of highest magnitude.
There that was easy.
Also if you play all the Beatles songs backward you will hear number 9 number 9
We’re the Beatles trying to warn us of a stock market crash?
Is Paul really dead? Check out his earlobes!
They are not his earlobes!
For silver stocks, it’s right now.