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It’s time for the PMs to outperform the equity markets

Cory
December 29, 2016

With a lot of people away from their desks Doc still takes time to share his views on the US equity markets as well as the relationship to gold. We look at some levels that the Dow could pull back to while still setting up for a pop in early 2017. Also we look at the gold chart and shares where the current move up could stop out.

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Discussion
82 Comments
    Dec 29, 2016 29:59 AM

    What if they gave a DOW 20k party and nobody came.

    Classic ending to the biggest fattest ugliest bubble of all time.

    DOW 10k by years end! And by years end I mean 2017!

      Dec 29, 2016 29:05 PM

      Nothing has ended yet. It is just a minor correction.

      Dec 29, 2016 29:52 PM

      Dow is more likely headed to 40k within 12 to 15 years max.

    Dec 29, 2016 29:04 AM

    Trump is a real estate developer who knows the art of the deal.

    He can get away with that in Brooklyn, Queens, Manhattan and Atlantic City.

    He isn’t going to get away with that with China and Russia.

    What happened to the swamp he was supposed to drain?

    I drained more swamp creatures.

    All the good news is already priced in, all that’s left is the bad news!

    Let that sink in

    Dec 29, 2016 29:06 AM

    You missed the wedding now you are going to show up for the funeral!

    Dec 29, 2016 29:10 AM

    Class act, Doc. Thanks Cory.

    Dec 29, 2016 29:13 AM

    Obama needs to step down now and just let Trump take over. Everything this narsistic glob touches turns to sh~t.

    http://www.zerohedge.com/news/2016-12-29/us-announces-sanctions-against-russia-expels-35-diplomats-retaliation-election-hacki

      Dec 29, 2016 29:08 PM

      ditto…..the guy is a moron

        Dec 29, 2016 29:14 PM

        been saying this for eight years……the count down is on ……22 days….bye bye zero

    Dec 29, 2016 29:25 AM

    100 of the most viewed, shared, and talked about things on StockTwits in 2016
    By Stefan Cheplick (@scheplick) editor @stocktwits | December 28th, 2016

    http://blog.stocktwits.com/the-most-viewed-shared-and-talked-about-things-on-stocktwits-in-2016/

    Dec 29, 2016 29:29 AM

    Doc,

    Do you have any thoughts on the latest darling – copper – as everyone and their dog seems bullish on FCX and similar copper miners at the moment?

      Dec 29, 2016 29:41 AM

      There are some interesting thoughts on Copper in this room if you scan back up through the older comments. Cheers!

      https://www.ceo.ca/copper

      Dec 29, 2016 29:18 PM

      Bob, I believe copper has further to fall—I can tell you that FCX has further to fall—it’ll in all certainly hit 12. I might be a buyer then—I’ll have to wait and see the technicals.

      Dec 29, 2016 29:42 PM

      Hey Bob, we will be discussing copper a bit more on the weekend show with Doc. Thanks for the comment!

      Dec 29, 2016 29:46 PM

      Thanks Doc, Cory, Excelsior.

    Dec 29, 2016 29:33 AM

    John Rubino 12/28. Lines up with Doc’s thoughts. http://www.howestreet.com/2016/12/28/three-mini-bubbles-about-to-burst/

    Dec 29, 2016 29:00 PM

    Priced in GDX, the Dow (DIA) is down 12% in just the last couple of weeks.

    http://stockcharts.com/h-sc/ui?s=DIA%3AGDX&p=W&yr=5&mn=5&dy=0&id=p68872297983&a=493540636

    Dec 29, 2016 29:03 PM

    One of my biggest gainers today is up 28.5% on good volume…

    http://stockcharts.com/h-sc/ui?s=BEX.V&p=D&yr=1&mn=0&dy=0&id=p97899625555

      Dec 29, 2016 29:34 PM

      Nice Matthew!

      I had about a dozen stocks up 9%-20% today, but none up 28+% Still this was a pretty positive day in the metals and miners. Refreshing.

        Dec 29, 2016 29:09 PM

        One of my damnable OTC shares were still up 23% today for Aurcana, as an honorable mention. 🙂

        Aurcana Corp (AUNFF)
        $0.2909 Up + $0.0559 (23.79% gain)

          Dec 29, 2016 29:13 PM

          Yes, I realize the primary ticker (AUN) was only up around 9% today.

          Personally, I added shares of (AUNFF) at a little over $.20/per over a week ago, and it closed at $.29. Not too shabby thus far…and still just getting started…..

            Dec 29, 2016 29:16 PM

            Hi Shad: Doing some DD in the B.C Golden Triangle,saw Brixton and remembered you had a position.Do you still have any BBB ? Pretium has reported 49 intersections over 1,000 g/t AU. They have a Bonanza hole reported 37,117 g/t AU uncut over .5 meters.The Golden Triangle looks intriguing.Do you have any more positions in the Golden Triangle?

            Dec 29, 2016 29:34 PM

            Hi JohnK. Yes, there are a few interesting plays going on in the Golden Triangle.

            As for Brixton, absolutely. I added in a big way when BBB sold off due to the news that they just bought their 3rd prior producing Silver mine. It looked oversold on the news, and I had mentioned that on here at that it looked ready to pop. It did right after that for the last week or so. Moving into the next few years I believe this stock will get re-rated in a big way. They’ve been hitting stellar drill results at both their Langis and Thorn properties.

            I comment on it quite often on Ceo and if you scroll up there are a number of quotes, press releases, charts and thoughts from other investors as well.

            https://www.ceo.ca/bbb

            Dec 29, 2016 29:43 PM

            $BBB $BXTMF Brixton Metals acquires third past-producing mine
            TRISH SAYWELL – DECEMBER 22, 2016

            “Since Brixton Metals (TSXV: BBB) started looking about a year ago at the historic Silver – Cobalt camp near the northern Ontario town of Cobalt, the junior has picked up Three past-producing underground mines that it believes could churn out more Silver some day.”

            “Its third acquisition — the Gowganda mine — was announced on Dec. 19….”

            http://www.northernminer.com/news/brixton-metals-acquires-third-past-producing-mine-ontario/1003782016/

            Dec 29, 2016 29:44 PM

            From that Northern Miner piece on $BBB $BXTMF

            “Thompson adds that there’s only a small number of primary #silver opportunities in #Canada and says that’s one of the reasons why Brixton is so attractive to its shareholders, which include #RobMcEwen (9%), #USGlobal and #Hecla Mining, (each with 6%), Eric #Sprott (5%) and #retail 55%. #Management owns about 12%.”

            “We’re very excited — it’s #brownfield #exploration for the most part, and you know the old saying: ‘A good place to look for a mine is near a mine,’” says Thompson. “But we’ve got some work to do to get those resources defined.”

            Thompson, one of the company’s co-founders, notes that generally the historic workings at all three mines were relatively shallow. Hudson Bay was mined down to 60 metres, Langis went down to about 200 metres, while Gowganda reached a depth of 260 metres.

            “If you’re looking at the #Abitibi Greenstone Belt, we know that the basement rocks can have mineralization down to a significant depth, so we see an opportunity for that potential with some of the deeper structures at our projects,” he explains. “We know we have some large-scale regional faults, and we think the splays off those faults could be conduits for the fluid flow both at shallow levels and at depth.”

            “The company drilled 15 holes at Langis this summer, some of which returned very high grade, including 3.13 metres of 1,944.6 grams #silver and 2 metres of 1,084 grams #silver. One of the most intriguing holes, however, intersected 4.9 grams #gold per tonne and 397 grams #silver at a depth of around 156 metres.”

            http://www.northernminer.com/news/brixton-metals-acquires-third-past-producing-mine-ontario/1003782016/

            Dec 29, 2016 29:51 PM

            JohnK – another position I currently hold in the Golden Triangle is Teuton Resources. They are a Project Generator with land around the Pretium and Seabridge properties as well as around the IDM Mining properties, and they are in Joint Ventures directly with Pretium, Tudor Gold, American Creek, and Silver Grail on those lands (just to keep it complicated) 🙂

            Here are some property maps for an idea of where their different land packages are. As you scroll down, notice how strategic some of their properties are in relation to the others.

            I’ve heard the ceo is a bit of a madman, but still I look forward to some of their drilling plans and the JV partners drilling in 2017.

            http://teuton.com/

            Dec 29, 2016 29:04 PM

            Thanks Shad, the JV TUO is in with Tudor and American Creek looks interesting.
            629.7m@.526gt AU,338m@.70 g/t AU. are some real nice drill core. Cheers.

            Dec 29, 2016 29:53 PM

            There is also Dolly Varden. (DV) (DOLLF)

            I had traded this into the potential Hecla takeover news this year, but then the deal unraveled and the stock sold off on the tension. However, they have very prospective land, have had good exploration results, and it has been on the move again lately. Somebody is going to takeover this project.

            DOLLY VARDEN DRILLS 19.4 METERS OF 485 G/T SILVER AT TORBRIT
            Nov 23, 2016

            https://www.dollyvardensilver.com/news/2016/dolly-varden-drills-19.4-meters-of-485-g-t-silver-at-torbrit/

            Dec 29, 2016 29:20 PM

            Yet another Golden Triangle play that has my attention is (CXO) (CLASF) Colorado Resources. It’s mostly an Exploration discovery play, but they have some infrastructure in place and power and water, so that is another positive for them.

            Colorado Resources Corporate Presentation:

            http://www.coloradoresources.com/i/pdf/KSPInel_SubscribersSummit_PDF.pdf

            Dec 29, 2016 29:28 PM

            Lastly, one of the KER sponsors – (AUG) (GGTCF) Auryn Resources has the “Homestake” advanced deposit that is also in the Golden Triangle, but they a few different jurisdictions they are operating in.

            Auryn Resources Corporate Presentation:

            http://www.aurynresources.com/assets/docs/ppt/AUG_Presentation_06Dec2016.pdf

            Dec 29, 2016 29:35 PM

            I like CXO a lot. CXO has been on my radar.They claim to have the largest land package in the triangle of any Jr.
            CXO has been on my Bonanza list.
            2011 I tracked core results,when I looked at them earlier this summer the majority of the companies had been taken over.
            I really like the set up we have going now.
            Just a side note,your NHK is on my bonanza list also.

            Dec 29, 2016 29:43 PM

            Nice. Yes I’ve been watching Colorado Resources for a while, and traded it very briefly earlier this year. Nighthawk Gold may very well stretch its wings this year….

    Dec 29, 2016 29:15 PM

    One of the best looking gold charts currently is premiere gold—not investment advice—big volume as well.

    Dec 29, 2016 29:07 PM

    Since my bearishness and bullishness seem to be nearly perfect contrary indicators, I am just going to shut up and can the histrionics.

    Again, win or lose, I would like to thank Matthew for his analysis. Keep it up. And let us know when and if you start trimming in size. 😛

      Dec 29, 2016 29:39 PM

      Next year is gonna be a good one, Spanky. We won’t be trimming big for quite awhile — at least on a net basis for the sector.

    Dec 29, 2016 29:24 PM

    So, everyone happy that gold has bottomed and the next stop is the Moon?

    Or is this a thinly traded Christmas week with a bit of pumping going on so that the big boys can book some profits?

    Dec 29, 2016 29:27 PM

    It is the bottom.

    The next stop is $1340

      Dec 29, 2016 29:11 PM

      I doubt it can get higher than the 1200’s.

      b
      Dec 29, 2016 29:59 PM

      Am I detecting a slight variance in thinking JtL?

    Dec 29, 2016 29:44 PM

    Hi, Bought some shares of Bonterra resources, BTR-V today at 0,26 cad. An article by Bob Moriarty got my attention and it seemed right to get some cheap gold in the ground😄
    Drillresults out very soon, they could be out as soon as the beginning of january.
    Ex , Matthew I know you are interested talking and analysing these kind of micro juniors, any thoughts?

    Background:

    https://www.streetwisereports.com/pub/na/bonterra-resources-swings-for-a-double

    Precious metals summit nov 2016:

    https://m.youtube.com/watch?v=SyfO7DInYgk

      Dec 29, 2016 29:39 PM

      Blue, everything about that chart looks great (price action + all the indicators).

      http://stockcharts.com/h-sc/ui?s=BTR.V&p=D&yr=1&mn=0&dy=13&id=p69433032639

        Dec 29, 2016 29:41 PM
          Dec 29, 2016 29:07 PM

          Irv.v got a great pop out of one of Bob’s articles.

          Bob Moriarty: Bigger Buying Opportunity In Precious Metals Now Than 11 Months Ago

          Bob Moriarty: I will give you the most secret stock I’ve ever seen. There’s a company called Irving Gold, the symbol is IRV but it’s a CSE stock in Canada which means it’s hard to trade. If an investor pulls up their websiteand takes a look at their last seven press releases they’ve got samples that were $26,000 to the tonne. The company has been very quiet and it’s been very hard to buy shares. Eric Sprott has been an investor and there’s a good chance this company could have the richest gold mine in the world and we wouldn’t know it for another one or two years. Over forty percent of the shares are in the hands of three people.

          http://energyandgold.com/2016/12/25/bob-moriarty-bigger-buying-opportunity-in-precious-metals-now-than-11-months-ago/

          Dec 29, 2016 29:13 PM

          Thanks, Matthew!

      Dec 29, 2016 29:01 PM

      Yes I’m a fan of Bonterra. I know Bob M just picked up some recently on a stink bid, and Gwen Preston stands behind the company. I actually have exposure to a JV that Bonterra has with Golden Valley Mines. Here are the details:
      ________________________________________________________________________

      BonTerra Option

      – GZZ currently owns 100% of Lac Barry Prospect
      – GZZ granted an option to BonTerraResources Inc. (TSXV:BTR) to acquire an 85% interest in the Lac Berry Prospect (deal announced March 11, 2016)
      – To earn 85%, BonTerramust complete the following:
      – Issue to GZZ a value of $200,000 of BTR common shares (issued)
      – Incur expenditures of $2 million over 3 year period
      – Upon exercise, GZZ will retain a 15% free carried interest (“FCI”) and a 3% NSR, with 1% of the NSR being subject to a buyback for $1 million

      2016 Work Program

      – First year work commitment of $250,000
      – Prospecting and till sampling (results pending) programs completed

      *This was located on page 22 of the Golden Valley Mines Corporate Presentation:

      http://www.goldenvalleymines.com/investors/presentations/GZZ-December-2016_v3_EN.PDF

        Dec 29, 2016 29:15 PM

        Thanks, Ex!

    Dec 29, 2016 29:54 PM

    Open Question to everyone.How would you play the potential drop in the us market.I sense a slight rally in new year leading up to inauguration.going down after that to Sept low.so what’s my best play to profit on my crystal ball.

    Dec 29, 2016 29:06 PM

    I’m using SPXS. Don’t expect to get rich. Not investment advice!

    Dec 29, 2016 29:10 PM

    bought some phyz gold today………

      Dec 29, 2016 29:16 PM

      I would say that’s not a bad idea–added to my portfolio twice about 1 week ago.

    Dec 29, 2016 29:57 PM

    It’s a mistake to focus on only gold’s performance relative to the stock market this year. The gold miners have absolutely crushed the stock market. GDXJ is up 63% vs SPY, year-to-date. From the trough low to the summer high, GDXJ was worth 162% more SPY.

    Gold bullion has almost never looked so unappealing relative to the gold miners.

    GDXJ:SPY

    http://stockcharts.com/h-sc/ui?s=GDXJ%3ASPY&p=D&yr=1&mn=0&dy=13&id=p26184920552&a=439508726

    Dec 29, 2016 29:15 PM

    The action this week indicates that the miners have seen their lows. Of course, pullbacks will cause most players to doubt this.

    GDXJ 60 minute:

    http://stockcharts.com/h-sc/ui?s=GDXJ&p=60&b=5&g=0&id=p80670338441

      Dec 29, 2016 29:14 PM

      Matthew, I have been buying one of your favorite juniors lately but I’m not going to say which one because someone here might call me a pumper, If you ask me this stock is underwater and I might need to buy a sub pump. LOL! DT!

        Dec 29, 2016 29:02 PM

        Sounds like Galane. I averaged down but am still down significantly. It’s not the first time.

        If it’s not Galane, then I don’t have an idea which one it is. I am happy with the rest (and not worried about Galane). Remember that you have to trade these things. Because of my hands-on approach, I have held onto most of my gains this year — despite staying fully invested.

        Dec 29, 2016 29:08 PM

        DT – it should be fine on an investing site to discuss which stocks you like or are buying or selling without it always being labeled as pumping.

        Quite honestly, who gives a crap if someone says you are pumping a stock. Those kind of wet blanket types probably don’t even have any positions in mining stocks and they get their kicks on tearing others down, rather than offering something of value to the group. Everyone should take individual accountability for their decisions, and shouldn’t blame others for the choices that they make anyway.

        We are here to share good investing ideas with each other, and it is pretty difficult to do that without sharing news, charts, articles, editorials and explaining what you see as the Strengths, Weaknesses, Opportunities, and Threats associated with it. I’m always quite interested to hear which stocks others on here are buying, why they like them, what technical or fundamental drivers they say as headwinds or tailwinds, etc…

        Share on brother…… and screw the whiners….

          Dec 29, 2016 29:49 PM

          Ex, I really like Scorpio Gold, symbol SGN-V. A lot has been said on this site about this stock, rehashing it would be futile for me besides the problem as we all know is if you don’t know how to trade a stock which is the essence of being an investor the rest is meaningless. DT

          Dec 30, 2016 30:09 AM

          ditto,,,,,,”on share on brother …..and screw the whiners”………. or forget in lieu of “screw”

            Dec 30, 2016 30:55 AM

            screw the whiners just had a nice ring to it though…. 🙂

            You’re a gentleman though and I agree, we’ll change it to:

            “Share on brother….. and forget the whiners…..”

            Dec 30, 2016 30:30 AM

            sounds better in the in the “gentlemen’s club”…….. 🙂

            Dec 30, 2016 30:37 AM

            Happy New Year

            Dec 30, 2016 30:47 AM

            Happy New Year!

            OOTB you’re both a Scholar and a Gentleman (and a Merry Prankster)

            Dec 30, 2016 30:59 AM

            at least the merry prankster is politically correct……… 🙂

    Dec 29, 2016 29:13 PM

    Dick Tracy, N. Dynasty has the juice.It got me thinking about the other companies in the area. If Dynasty gets the go ahead certainly the other companies will burn up the charts.They could be good candidates for under the radar. Any thoughts?

      Dec 29, 2016 29:54 PM

      You’re right John K, if Northern Dynasty gets the go ahead, Alaska will be the next big play like The Yukon was a number of years ago. With Trump coming in and Europe being a financial accident waiting to happen how can you beat a copper gold mine of huge proportions. Surely The Germans will want to repatriate their gold held in The US. of A. The madness of investors will turn it’s attention to this area and it will be the next popular delusion. That is what we all seek in investing find the next tulip bulb mania and it’s location. DT

        Dec 29, 2016 29:08 PM

        Although I have owned “Extraordinary Popular Delusions and The Madness Of Crowds” by Charles MACKAY, LL.D. for at least thirty years, I must give Bob M kudos for bringing it back to my attention. It was first published in 1841 and 1852. Then this book was reissued in 1932 for present day readers. DT

    Dec 29, 2016 29:50 PM

    FYI & FWIW, GLD is up 2.2% so far this week while GDXJ is up 17%. That’s a very bull markety 7.7 times leverage.

      Dec 30, 2016 30:49 AM

      Yes, very bull markety indeed……