Daily Market Wrap – Thu 5 Jan, 2017

Precious Metals Stock Continue to Outperform the Metals

On today’s market wrap I focus on the precious metals moves compared to the PM stocks. The stocks are showing a lot of strength in the recent couple weeks but the metals prices need to continue their moves up to confirm this gain.

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Featuring:
Cory Fleck
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Comments:
  1. On January 5, 2017 at 1:34 pm,
    Silverdollar says:

    Cory:
    If gold continues to head higher, I’m thinking the stocks may out do last year because of the crowd that got left behind last year. Could make for more volatility, but profits nonetheless. Your advice on stops is prudent advice.

    • On January 5, 2017 at 2:17 pm,
      Cory says:

      You might very well be right SD. I am just skeptical of this move up until gold proves it to me on the spot market. I also think than when Trump enters office gold could get hit again.

      I am bullish on gold I just don’t think we will have a fast explosive move.
      Thanks for your comment!

    • On January 5, 2017 at 2:17 pm,
      Excelsior says:

      Great point Silverdollar. During December, (especially before and after the Christmas holiday), I was starting new positions and adding back to many of my core positions that I had trimmed in the Summer; just in case we got a Q1 rally in 2017.

      It was mentioned on here a few times that this seasonality trade had been a good in 2014 going into Q1 2015 and again in late 2015 into Q1 2016. So far it has been “3 times a charm” as many stocks are up 20-40% since their Dec lows already. As Cory mentioned in this editorial, much of this is due to Tax Loss selling tanking out good companies, and then different investors rebalancing before year end or coming out of the gates in the new year.

      Personally, I was expecting it to take a bit longer for a rally to really get moving, but it seems money is pouring into the Silver, Gold, Zinc, Copper, Uranium, Lithium stocks in a meaningful way already in Q1 2017.

      Silverdollar, the point you made had also crossed my mind that this year it is likely that all the investors that missed out on this seasonality pattern early last year, are positioning in larger numbers this year so they don’t miss the move.

      I’ve been doing my best to let the winners run, but some stocks have jolted up so much and so fast, that I trimmed a few back a little towards the end of the day.

      Ever Upward!

  2. On January 5, 2017 at 2:39 pm,
    CFS says:

    Cory, Gold is no longer a US-dominated commodity.

    Buying from Asia is currently determining the gold price movement, I believe, and we are not in for a large US jump in price in gold tomorrow. (2 cents)
    Silver is now beginning to be stronger than gold in Asia, with platinum even stronger.
    Although I personally increased my Platinum physical holdings over last weekend, I have been shocked by its strength this week.

    • On January 6, 2017 at 6:25 am,
      Marty says:

      Yes, exiting from bitcoin into gold

  3. On January 5, 2017 at 2:53 pm,
    CFS says:

    Platinum Price :
    Current Support Pivot Point Resistance
    964.64 926.43 958.09 989.75

  4. On January 5, 2017 at 2:57 pm,
    CFS says:

    Gold Price:
    Current Support Pivot Point Resistance
    1,179.43 1,150.53 1,174.59 1,198.65

  5. On January 5, 2017 at 2:59 pm,
    CFS says:

    Silver price:
    Current Support Pivot Point Resistance
    16.5690 16.2670 16.5550 16.8430

  6. On January 5, 2017 at 3:10 pm,
    CFS says:

    WASHINGTON (AP) — House Republicans on Wednesday kicked off their efforts to block or undo scores of regulations and executive orders issued by President Barack Obama.

    On a near party-line vote, lawmakers approved legislation that would allow Congress to overturn, with a single vote, executive branch regulations finalized near the end of an outgoing president’s term.

    The bill was approved, 238-184, and now goes to the Senate. Four Democrats joined 234 Republicans to support the bill.

    Republicans said the bill would stem what they call a growing trend by presidents of both parties to impose costly “midnight rules” during their last few months in office.

    The bill’s chief sponsor, Rep. Darrell Issa, R-Calif., said it would strengthen executive-branch oversight and “ensure that unaccountable, last-minute regulations don’t continue crippling our economy, crushing small businesses and raising costs on middle-class families.”

    The vote came as GOP leaders said their top regulatory targets will be Obama’s rules to reduce methane emissions and lessen the environmental impact of coal mining on nearby streams.

  7. On January 5, 2017 at 3:23 pm,
    Jason Weishaupt says:
    • On January 5, 2017 at 4:58 pm,
      Excelsior says:

      Thanks Jason. That was a good article on the Major Silver miners performance for 2016, but I’d take it a step further and point out that Jr Silver Producers, Silver Developers, and Silver Explorers kicked most of the Majors and Midtiers butts as well.

      This Jr out-performance is great in bullish marketplace, but is also true in out-performance to the downside in a more bearish marketplace. It’s a 2-way street.

  8. On January 5, 2017 at 3:53 pm,
    CFS says:

    VANCOUVER, British Columbia, Jan. 5, 2017 /CNW/ — Tahoe Resources Inc.
    Ron Clayton, President and CEO of Tahoe, commented: “2016 was a pivotal year for our company. We made significant progress building our gold business with the acquisition of Lake Shore Gold in April, adding both production and growth in Canada. We also achieved commercial production at Shahuindo and identified a number of growth opportunities at both our operations in Peru. In Guatemala, Escobal had an outstanding year, with record production, low costs and excellent profitability and cash flows. Supported by solid operating results, our financial position remains strong, with cash and equivalents exceeding $150 million at December 31, 2016.

    “Looking ahead to 2017, we are ramping up development of multiple projects, which are expected to drive growth in gold production starting in 2018. Key capital projects include deepening the Bell Creek shaft and further development of Shahuindo as we move that mine towards full production. We are targeting higher production from both our Canadian operations and Shahuindo to offset reduced gold output at La Arena, while Escobal is poised for another excellent year.”

  9. On January 5, 2017 at 5:19 pm,
    Dick Tracy says:

    JohnK, What are your thoughts these days on INZINC Mining Ltd., IZN-V. I keep thinking it may take-off but their deposit seems small, I’m referring to the Utah western desert holding any thoughts?

    • On January 5, 2017 at 7:07 pm,
      JohnK says:

      Hi DT:
      For me I would rather buy a stock at the lower Bollinger Band and sell it at the top Bollinger Band. I would ask you if you are buying this for a trade or an investment and what is your time frame? I like your thinking on zinc,but according to trading economics,www.tradingeconomics.com zinc peaked in Nov/Dec last year.
      Gerald Appel, author of “Technical Analysis Power Tools For Active Investors” and the inventor of the MACD states: The following are very significant supplementary additions to the basic rules relating to MACD buy/sell signals.
      * Buy signals are much more reliable when the MACD has crossed from above to
      below zero 0 at some time since the most recent sell signal. The MACD does not
      have to be below 0 at the time of the buy signal, but it should have been below
      0 at some time since the start of the most recent decline.

      • On January 5, 2017 at 7:09 pm,
        JohnK says:
        • On January 6, 2017 at 2:50 am,
          Excelsior says:

          JohnK – I did write you back about Centrus Energy & a few other things on yesterday’s John Rubino editorial, but it was a late post. (Just wanted you to know.)

          Also, since we were discussing Uranium companies recently, I just posted a big Uranium Mining breakdown on the Doc editorial from today in a discussion with Blue, with my holdings and my plans moving forward. I’d like to get thoughts from other interested investors in the Uranium sector, and we have a pretty good thread going on that blog if you want to get in the mix. Cheers!

      • On January 5, 2017 at 8:42 pm,
        Dick Tracy says:

        Hi JohnK, I only own a few stocks, usually three, I have one gas junior very risky in The Ukraine, and a micro cap gold junior. My real passion right now is trading NDM. In and out, selling and buying principally this one stock and accumulating.

        Thanks for your input, I guess my real question should have been to ask you about the zinc market, you have given me a timely response and I appreciate that. DT

  10. On January 5, 2017 at 5:19 pm,
    CFS says:

    RT Keiser report discusses student debt problem in the second half.

    https://www.youtube.com/watch?v=658VsSl0NUc

    • On January 6, 2017 at 1:21 pm,
      OOTB Jerry says:

      I have been talking about this for several years……at least 5……..

  11. On January 5, 2017 at 5:30 pm,
    CFS says:

    FYI, A discussion of the US economy Fundamental knowlrdge:

    https://www.youtube.com/watch?v=2JspS2BPPxA

  12. On January 5, 2017 at 5:46 pm,
    CFS says:

    Rick Ackerman should listen to the last few minutes of the above youtube, because I think the dollar is weaker than he thinks.

  13. On January 5, 2017 at 6:03 pm,
    Steele says:

    The recent PM stock surge is a somewhat pleasant surprise, but not entirely unexpected given the dismal sentiment most of December. I am not worried in the least.

    http://www.foxbusiness.com/markets/2017/01/05/gold-and-silver-stocks-regain-their-luster-but-will-it-last.html

  14. On January 5, 2017 at 6:18 pm,
    Steele says:

    The following site also forecasts a USD high of 120, to be achieved in Q4 2017. That would be a pretty tall order. Note their stock market (DOW) forecast for 2020 is 20% lower than today’s levels. Very possible.

    http://www.tradingeconomics.com/united-states/currency/forecast

  15. On January 5, 2017 at 8:11 pm,
    CFS says:

    RT talks about Russian Hacks to affect election:

    https://www.youtube.com/watch?v=nrFUd9DaU0M

  16. On January 5, 2017 at 8:18 pm,
    CFS says:

    Coeur Reports Fourth Quarter and Full Year 2016 Production Results and Provides 2017 Production Guidance

    Coeur Mining, Inc. (the “Company” or “Coeur”) (NYSE:CDE) today announced fourth quarter production of 3.9 million ounces of silver and 102,500 ounces of gold, or 10.0 million silver equivalent1 ounces, the highest quarterly silver equivalent1 production in Company history.
    View the full release here: http://www.businesswire.com/news/home/20170105006523/en/
    Full-year 2016 production was 14.8 million ounces of silver, in-line with the Company’s guidance of 14.4 – 15.7 million ounces, and 358,170 ounces of gold, above the high-end of Company guidance of 333,000 – 355,000 gold ounces. Full-year silver equivalent1 production totaled 36.3 million ounces, in line with guidance of 34.4 – 37.0 million ounces.

  17. On January 5, 2017 at 8:50 pm,
    johnnygeneric says:

    My GDX is up 20% so far…

  18. On January 5, 2017 at 9:02 pm,
    Matthew says:
  19. On January 5, 2017 at 9:11 pm,
    Matthew says:
  20. On January 5, 2017 at 9:12 pm,
    Chartster says:

    Trading the VIX using the Duvall tactic.

    https://m.youtube.com/watch?v=VcT2x90WaPY

  21. On January 5, 2017 at 11:18 pm,
    Marty says:

    Looks like a repeat assault on metals & miners like last Friday is upon us.

  22. On January 5, 2017 at 11:25 pm,
    Anders from Copenhagen says:

    Hi Cory.
    Great market wrap!
    I would like you to take a technical look at the uranium price; as well as som uranium stocks, e.g. Cameco, Fission or Energy Fules.
    Thanks for all your work.
    Best. Anders 😎

    • On January 6, 2017 at 2:57 am,
      Excelsior says:

      Anders from Copenhagen – You may like the Uranium Mining thread that Blue and I have going over on Doc’s editorial from today (about 1/2 way down). I blew my wad posting on a number of Uranium miners, and thought I’d share that if you want to join in the discussion. 🙂

      http://www.kereport.com/2017/01/05/strategies-play-longer-term-trends-markets/

    • On January 6, 2017 at 3:05 am,
      Excelsior says:

      Anders from Copenhagen – I also sent you a link to the Uranium room over at CEO and posted a number of Bar Charts for the move over the last month for Uranium Miners over on the Chris Temple blog today at the bottom. Cheers!

      Here’s a link over to Mr T’s editorial for easy reference (at the bottom):

      http://www.kereport.com/2017/01/05/odd-couple-trade-kick-2017/

  23. On January 6, 2017 at 6:36 am,
    Marty says:

    Nice cup & handle 50% move OFF THE BOTTOM for Golden Arrow GARWF

    • On January 6, 2017 at 6:50 am,
      Excelsior says:

      Shhhhh! Keep it down, some people are still in the accumulation phase with Golden Arrow. 😉

      (it is a nice cup& handle though, isn’t it?)

  24. On January 6, 2017 at 7:00 am,
    Dan, calgary says:

    The last two spikes in the price of UWE were sudden. This one seems to be building instead of spiking. I own it.

    http://stockcharts.com/h-sc/ui?s=UWE.TO&p=D&yr=2&mn=0&dy=0&id=p74243878875

    • On January 6, 2017 at 7:14 am,
      Excelsior says:

      Dan, calgary, glad I added big in Argonaut on the Dec 16th News when everyone (predictably) over-reacted. I trimmed a bit yesterday into the strength, but left some on to ride….

      http://stockcharts.com/h-sc/ui?s=AR.TO&p=D&yr=0&mn=1&dy=0&id=p25788156053

      • On January 6, 2017 at 7:22 am,
        Excelsior says:

        That permit news had caught me by surprise, but I knew it was an over-reaction by the marketplace, and had mentioned I averaged down that Friday when things took a nose dive, and quickly climbed back up into positive territory. I wasn’t expecting such a quick or steep rebound, but I knew AR would be just fine in the mid-term.

      • On January 6, 2017 at 7:22 am,
        Dan, calgary says:

        I sold a day early and missed a 30 cent rise. Ugh. Selling early is my biggest fault and buying low is my strongest asset… know oneself.

        The FOMC meeting you mentioned at the end of Jan. could affect this market a lot.

        • On January 6, 2017 at 7:34 am,
          Dan, calgary says:

          Actually a 40 cent move I missed… double Ugh! This stock usually has a large short position so could have been a squeeze.

          • On January 6, 2017 at 8:01 am,
            Excelsior says:

            From where I trimmed yesterday it was an $.80 move for me so far from the Dec 16th. 😮

            Yes, I often sell too soon as well, but when I saw the nosedive on that news on the 16th, about the delay in the permit on that one development project, then I knew the market was just being dramatic. It wasn’t even one of the main producing mines from them, and they have 3 different development projects in addition to their other exploration projects. The overall value of the company went down by 1/5 on that day, and they will likely just reapply for that license to meet the requirements.

            ____________________________________________________________________

            This article had just come out 2 days before that news release:

            5 #Junior #Gold #Miners with Low All-In Sustaining Costs #AISC
            Posted By Smallcappower – December 14, 2016
            $GCM – Gran Colombia Gold
            $EDV – Endeavour Mining
            $TGZ – Teranga Gold
            $AR – Argonaut Gold
            $BAA – Banro Corp

            http://smallcappower.com/analyst-articles/5-junior-gold-miners-141216/

          • On January 6, 2017 at 8:03 am,
            Excelsior says:

            Also on that same day this promotional coverage was released:

            Argonaut Gold Inc $AR $ARNGF Receives New Coverage from Analysts at Cormark
            December 14th, 2016 – By Teresa Graham

            “A number of other equities research analysts have also weighed in on AR. Desjardins upgraded shares of Argonaut Gold from a hold rating to a buy rating and boosted their target price for the company from C$4.00 to C$4.70 in a research note on Tuesday, August 16th. Scotiabank reiterated an outperform rating and set a C$5.00 target price on shares of Argonaut Gold in a research note on Thursday, August 18th. BMO Capital Markets decreased their target price on shares of Argonaut Gold from C$4.50 to C$3.50 and set a market perform rating for the company in a research note on Tuesday, October 18th. CIBC decreased their target price on shares of Argonaut Gold from C$3.75 to C$3.25 in a research note on Tuesday, October 18th. Finally, Canaccord Genuity decreased their target price on shares of Argonaut Gold from C$4.25 to C$3.25 in a research note on Monday, October 24th. Four equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The company has a consensus rating of Hold and an average price target of C$4.21 million.”

            https://www.thecerbatgem.com/2016/12/14/argonaut-gold-inc-ar-receives-new-coverage-from-analysts-at-cormark.html

        • On January 6, 2017 at 8:14 am,
          Excelsior says:

          Yes, I’m curious to see how things go on the front and back side of the FOMC meeting on Jan 31st – Feb 1st.

          Fun times!

  25. On January 6, 2017 at 7:09 am,
    CFS says:

    Surprise, Surprise, Obama’s building a wall!

    https://www.tmz.com/2017/01/06/president-obama-dc-house-brick-wall/

    Pity it is just around his DC mansion!

  26. On January 6, 2017 at 7:16 am,
    CFS says:

    WASHINGTON (AP) — U.S. employers added 156,000 jobs in December, capping a year of slower but solid hiring and providing the last major snapshot of the economy President-elect Donald Trump will inherit from President Barack Obama.

    Friday’s report from the Labor Department portrayed a job market that remains durable 7½ years after the recovery from the Great Recession began. Though the unemployment rate rose to 4.7 percent from a nine-year low of 4.6 percent, it did so for an encouraging reason: More people began looking for work. Because not all of them found jobs immediately, more people were counted as unemployed in December.

    Hiring last month was led by the health care sector, which added 43,000 jobs, mostly in doctors’ offices and hospitals. Manufacturing resumed hiring after four months of job cuts, adding 17,000.

    Restaurants and bars gained 30,000 positions. Transportation and warehousing, fueled by the growth of online shopping during the holiday season, added 15,000. On the other hand, construction and mining companies shed jobs.

    A broader gauge of unemployment, which includes part-time workers who would prefer full-time work as well as people who have stopped looking for jobs, dipped to 9.2 percent from 9.3 percent. That’s the lowest level since April 2008.

  27. On January 6, 2017 at 7:19 am,
    CFS says:

    Not a reason for a strong dollar!

    WASHINGTON (AP) — The U.S. trade deficit in November rose to the highest level in nine months as imports of oil and other foreign goods increased, while American exports fell for a second month.

    The trade deficit jumped 6.8 percent to $45.2 billion, the largest imbalance since February, the Commerce Department reported Friday. Exports edged down 0.2 percent to $122.4 billion, reflecting lower overseas sales of American-made airplanes, autos and farm products. Imports rose 1.1 percent to $231.1 billion, led by a 7.6 percent jump in oil.

    • On January 6, 2017 at 7:32 am,
      Dan, calgary says:

      Canada had its first trade surplus in November for the last couple years as per BNN.

    • On January 6, 2017 at 7:35 am,
      OOTB Jerry says:

      what are we going to export……..bartenders and real estate…..

      • On January 6, 2017 at 7:36 am,
        OOTB Jerry says:

        maybe basketball and football ………

        • On January 6, 2017 at 7:37 am,
          OOTB Jerry says:

          Maybe some fake news……..that sells real well

  28. On January 6, 2017 at 7:22 am,
    CFS says:

    The GOOD news:

    US Factory Orders Drop 2.4 Percent But Investment Up
    By MARTIN CRUTSINGER – Associated Press – 4 minutes ago
    WASHINGTON (AP) — Orders to U.S. factories fell for the first time in five months in November, but much of the weakness reflected a swing in the volatile category of commercial aircraft. A key category that tracks business investment spending posted an increase.

    The Commerce Department says factory orders dropped 2.4 percent after a 2.8 percent rise in October. It was the first decline since June but the weakness was led by a 73.8 percent plunge in demand for commercial aircraft following a 94.5 percent surge in October.

    A key category that serves as a proxy for business investment spending increased 0.9 percent after a 0.5 percent rise in October. This category has lagged for much of this year as a result of big cutbacks in the oil and gas industry.

    • On January 6, 2017 at 7:45 am,
      OOTB Jerry says:

      Glad to see that govt added 12.000 new jobs………….

  29. On January 6, 2017 at 7:32 am,
    CFS says:

    Did you read where I reported on Molecular biology on a smart phone yesterday?
    (Measuring body fat)
    And someone commented about it would be better if it could remove body fat.

    Well check out this stock:
    EnteroMedics Announces vBloc® Neurometabolic Therapy Now Available at MedStar Health and Roper St. Francis

    ST. PAUL, Minn., Jan. 5, 2017 /PRNewswire/ — EnteroMedics Inc. (NASDAQ:ETRM), the developer of medical devices using neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders, today announced that the Company’s vBloc® Neurometabolic Therapy has now been implanted at two additional vBloc Institutes – MedStar Health in Maryland and Roper St. Francis in South Carolina. In order to qualify as a vBloc Institute, a medical center or hospital system must have integrated the Company’s vBloc Therapy and its vBloc® Achieve support program into its practice. MedStar Health and Roper St. Francis are the twelfth and thirteenth vBloc Institute programs to have integrated vBloc Therapy and the vBloc® Achieve care delivery program into their practice to fight obesity. vBloc Institutes have previously been established at the following medical centers/hospital systems: VA North Texas Health Care System: Dallas VA Medical Center, NIX Medical (San Antonio), Hartford Hospital, Hackensack University Medical Center, South Florida Surgery and Bariatric Institute, University of Texas Medical Branch (UTMB), Smart Dimensions Weight Loss, Christiana Institute of Advanced Surgery (CHRIAS), Beltline Surgery Center, Winthrop University Hospital and Sky Ridge Medical Center.

    NOT A RECOMMENDATION.

  30. On January 6, 2017 at 7:37 am,
    CFS says:

    Looks to me the ESF (Plunge Protection Team) stepped in right with the payroll announcement today.

    • On January 6, 2017 at 7:59 am,
      OOTB Jerry says:

      wonder if that could be considered “manipulation”……….lol

  31. On January 6, 2017 at 7:41 am,
    CFS says:

    They also coordinated a hit on glod right before the jobs announcement.

    http://www.kitco.com/charts/popup/au24hr3day.html

    • On January 6, 2017 at 9:10 am,
      OOTB Jerry says:

      Going to take years before anything comes from this action……….

      • On January 6, 2017 at 9:11 am,
        OOTB Jerry says:

        But , …..glad to see that he is taking action……….

  32. On January 6, 2017 at 8:28 am,
    CFS says:
  33. On January 6, 2017 at 8:34 am,
    CFS says: