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Precious Metals Stock Continue to Outperform the Metals

Cory
January 5, 2017

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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Discussion
66 Comments
    Jan 05, 2017 05:34 PM

    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.

      Jan 05, 2017 05:17 PM

      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!

      Jan 05, 2017 05:17 PM

      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!

    CFS
    Jan 05, 2017 05:39 PM

    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.

      Jan 06, 2017 06:25 AM

      Yes, exiting from bitcoin into gold

    CFS
    Jan 05, 2017 05:53 PM

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

    CFS
    Jan 05, 2017 05:57 PM

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

    CFS
    Jan 05, 2017 05:59 PM

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

    CFS
    Jan 05, 2017 05:10 PM

    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.

    Jan 05, 2017 05:23 PM
      Jan 05, 2017 05:58 PM

      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.

    CFS
    Jan 05, 2017 05:53 PM

    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.”

    Jan 05, 2017 05:19 PM

    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?

      Jan 05, 2017 05:07 PM

      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.

          Jan 06, 2017 06:50 AM

          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!

        Jan 05, 2017 05:42 PM

        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

    CFS
    Jan 05, 2017 05:19 PM

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

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

      Jan 06, 2017 06:21 PM

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

    CFS
    Jan 05, 2017 05:30 PM

    FYI, A discussion of the US economy Fundamental knowlrdge:

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

    CFS
    Jan 05, 2017 05:46 PM

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

    Jan 05, 2017 05:03 PM

    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

    Jan 05, 2017 05:18 PM

    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

    CFS
    Jan 05, 2017 05:11 PM

    RT talks about Russian Hacks to affect election:

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

    CFS
    Jan 05, 2017 05:18 PM

    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.

    Jan 05, 2017 05:50 PM

    My GDX is up 20% so far…

    Jan 05, 2017 05:12 PM

    Trading the VIX using the Duvall tactic.

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

    Jan 05, 2017 05:18 PM

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

    Jan 05, 2017 05:25 PM

    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 😎

      Jan 06, 2017 06:57 AM

      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/

      Jan 06, 2017 06:05 AM

      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/

    Jan 06, 2017 06:36 AM

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

      Jan 06, 2017 06:50 AM

      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?)

    Jan 06, 2017 06:00 AM

    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

      Jan 06, 2017 06:14 AM

      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

        Jan 06, 2017 06:22 AM

        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.

        Jan 06, 2017 06:22 AM

        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.

          Jan 06, 2017 06:34 AM

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

            Jan 06, 2017 06:01 AM

            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/

            Jan 06, 2017 06:03 AM

            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

          Jan 06, 2017 06:14 AM

          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!

    CFS
    Jan 06, 2017 06:09 AM

    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!

    CFS
    Jan 06, 2017 06:16 AM

    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.

    CFS
    Jan 06, 2017 06:19 AM

    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.

      Jan 06, 2017 06:32 AM

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

      Jan 06, 2017 06:35 AM

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

        Jan 06, 2017 06:36 AM

        maybe basketball and football ………

          Jan 06, 2017 06:37 AM

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

    CFS
    Jan 06, 2017 06:22 AM

    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.

      Jan 06, 2017 06:45 AM

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

    CFS
    Jan 06, 2017 06:32 AM

    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.

    CFS
    Jan 06, 2017 06:37 AM

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

      Jan 06, 2017 06:59 AM

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

    CFS
    Jan 06, 2017 06:41 AM

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

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

      Jan 06, 2017 06:10 AM

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

        Jan 06, 2017 06:11 AM

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

    CFS
    Jan 06, 2017 06:34 AM