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Doc and Chris – A big reversal day for the markets show there is no reason to be buying now!

Cory
April 5, 2017

A big reversal in the markets today! The Dow was up over 200 points and closed the day negative. The safe havens had money flow in but still did not break out. The next two days could drive home the fact that safe havens should draw your attention. The was and ADP number that helped drive the markets higher at the start of the day but Paul Ryan and Fed minutes reversed it all. Doc and Chris helped me break it all down.

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Discussion
57 Comments
    Apr 05, 2017 05:24 PM

    Doc, we shoulda waited till this morning to buy KLDX, but it won’t matter when gold is 5K/oz

      Apr 05, 2017 05:06 PM

      BB; all I see now is a short term bottoming pattern. I would love to hit the bottom right on the nose but I know that’s impossible since my wife tells me I’m not infallible.

    Apr 05, 2017 05:38 PM

    Enjoyed your opinions. Chris, & Doc especially sound a bit more positive on gold!
    Good to hear.

    Apr 05, 2017 05:43 PM

    There has been a little distress selling on the Stock Exchange. All in the same this is not a frightful day. Just when you think the markets will head down a semblance of confidence will return and back up we will go. Don’t worry be happy! DT

    Apr 05, 2017 05:18 PM

    Maybe Trump will give Xi a big wet French kiss in Florida and cheer investors up.

      Apr 05, 2017 05:52 PM

      Yes Chris,that will herald the sound of the big gong in the great hall of the exchange tomorrow morning.

        Apr 05, 2017 05:04 PM

        Instead of the shot heard around the world to initiate the crash it will be the kiss blown around the world that started a new market love fest. LOL! DT

          Apr 05, 2017 05:32 PM

          Hahaha…. you guys crack me up.

    Jay
    Apr 05, 2017 05:19 PM

    Excellent discussion, thanks!

    Also, here’s my regular Alexandria Minerals update 🙂

    Eric Sprott just invested 80% of their latest funding. Still think something’s up there. Smelling like they have the potential for huge reserves increases?

    http://www.azx.ca/alexandria-announces-2-5-million-financing-including-2-million-strategic-investment-by-eric-sprott/

      Apr 05, 2017 05:00 PM

      The time to buy will be 4 months later when they try to dispose of 41 million units to get at 41 million warrants.

        Apr 05, 2017 05:32 PM

        +41

        Jay
        Apr 05, 2017 05:54 PM

        I thought about that.

        However, it depends on the price of gold then and any positive reserve announcements between now and then.

        Could cause a dip or may be a non-event. Not waiting 🙂

          Jay
          Apr 05, 2017 05:55 PM

          If good news between now and then, there may not be as many holders selling then as there might ordinarily be.

            Apr 05, 2017 05:45 PM

            Jay, you need to read Bob M’s book, when the selling begins the sheep will get very fearful and the herd will all stampede in the same direction at the same time, and like Ex say’s watch out it will turn into Niagara Falls.

    CFS
    Apr 05, 2017 05:30 PM
    CFS
    Apr 05, 2017 05:39 PM

    Gold took off just AFTER New York NYMEX closed. I suspect some of the movement was due the Chinese buying.

    CFS
    Apr 05, 2017 05:48 PM

    There is a loss of direction in the Whitehouse, with Bannon removed.
    https://www.youtube.com/watch?v=-NhLUI_Jn2g
    With Trump now taking more advice from liberals and Rhinos this does not look good.
    The loss of Flynn, who was not anti-Russian or anti-Chinese, and with the Newsmedia hyping up anti-Russian and anti-Chinese feelings, I hope Trump will not make any aggressive mistakes that put us into a no-win war.

    CFS
    Apr 05, 2017 05:51 PM

    Epstein End of Day TA;

    https://youtu.be/uum4CS8nEDU?t=33

    Apr 05, 2017 05:14 PM

    Earlier in the day, before the Fed and P.Ryan comments,the Russell 2000 had already started the sell off.I don’t know what it means, it was just an observation.

      Apr 05, 2017 05:30 PM

      Good note John. Seemed like it all started to build on itself throughout the day. Now the question is will it follow through this week?

      Apr 05, 2017 05:34 PM

      I noticed that JohnK and was in a $TZA trade and went from worried in the morning to elated in the afterhours trading. 😉

        Apr 05, 2017 05:36 PM

        In case that didn’t make sense (TZA) is a 3 x short the Russell 2000.

        I had held from yesterday so it was a real nail biter in the morning, but it kept heading up the remainder of the day as the small cap stocks sold off. A nice way to wrap up the day.

          Apr 05, 2017 05:29 PM

          Nice catch Shad.
          CZX closed it’s PP at .44 today and the stock bounced right on que.Nice call Doc.
          Doing some DD on the Silver Explorers today, I came across where on March 15, Benz Mining optioned Silver Range Resources property within the same belt as CZX,Tech/Korea Zinc.
          This will definately be an area play to keep your eye on.Thanks for highlighting VZX on the KE Report.

            Apr 05, 2017 05:30 PM

            CXZ

            Apr 05, 2017 05:30 PM

            CZX

            Apr 05, 2017 05:33 PM

            Thanks John. Yes, that whole belt is heating up and the key is that Teck’s future plans, along with Korea Zinc, make it an emerging area play to follow. Canada Zinc Metals is smack in the middle of it, and it seemed interesting that so few are paying attention to it.

            Zinc has been rocketing higher for the last year on sound supply/demand fundamentals, so it has many companies scrambling to bring on zinc exploration and development plays. What I like is that they have huge resources, multiple projects on a huge land package, active JVs and strategic investment through Majors, and their permitting in place. It may take until the summer to get a life, but I got a starter position going, and like having a fishing pole in that pond.

            When these commodity frenzies start up (like Iron, Copper, Lithium, Cobalt, and Zinc etc…) my instincts are typically to first go with companies that were specializing in the sector BEFORE it got hot. I like when a company really understands mining a certain commodity and has put in the learning curve when times were tough and survived the downturn. When the cycle turns and their commodity is now in demand, then they have a more advanced project and a leg up on the “Me Toos”.

            Conversely, I also typically want to sprinkle in a few full-throttled Exploration companies as well, because they’ll go up into the shareprice appreciation froth if they have good geology and have a few good drill holes (like Tinka the last few weeks). I expect Vendetta mining to be next up to bat once they get their financing announced [and that should be in the near future….then its game on].

            In regards to Silver Range Resources, a good way to get at least some exposure is through Strategic Metals who owns 9,480,340 shares of their company, along with a slew of other Exploration companies across a few different commodities.

            http://www.strategicmetalsltd.com/investors/stock-holdings

    CFS
    Apr 05, 2017 05:23 PM
    CFS
    Apr 05, 2017 05:36 PM

    Dave Skarica on Palisade Radio:

    https://www.youtube.com/watch?v=Z7YCuRX0TNw

    CFS
    Apr 05, 2017 05:28 PM
    CFS
    Apr 05, 2017 05:40 PM

    I was wrong when I guessed China bought gold today after the NYMEX closed.
    It appears the buying was by Turkey:

    http://www.reuters.com/article/turkey-imports-gold-idUSL5N1HC4SA

    CFS
    Apr 05, 2017 05:50 PM

    Obam’s dirty Tricks:

    https://thefederalist.com/2017/04/05/bombshell-obama-spying-scandal-started-long-trump/

    (I have been telling folks on this forum for years, he was scum.)

      CFS
      Apr 05, 2017 05:15 PM

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

      Hannity interviews real journalists.

      Apr 06, 2017 06:59 AM

      Most of us agree with your assessment of Obamy………

        Apr 06, 2017 06:00 AM

        go back 8 years…….and you can verify the statements on the blog……

          Apr 06, 2017 06:02 AM

          I still do not think he is natural born citizen……..If Trump wanted to push it, he could…jmho

            Apr 06, 2017 06:03 AM

            Time to unseal his SCHOOL RECORDS………..

      Apr 06, 2017 06:06 AM

      Teaparty people are still ticked….on the IRS….bs………talk about spying and inside tricks of an administration on meth …

    Apr 05, 2017 05:02 PM

    Really interesting & informative commentary folks.

    Apr 05, 2017 05:38 PM

    Gwen Preston: Goldcorp-Barrick Deal Spells Great Things for Mining Sector
    Beneath The Surface – Apr 5, 2017

    (Gwen also mentions some of the Kinross properties and the Exeter takeover in how this new giant 3 Copper/Gold deposit JV between Goldcorp and Barrick all fits together).

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

      CFS
      Apr 05, 2017 05:20 PM

      The premium was 60% because that’s what it took.
      It is totally trivial compared with the cost of development, so I’m not sure it is meaningful.

      A lot of capital is going to be sucked up by the development and some of that might have been used to advance many smaller projects, so perhaps the Maven is spinning a good light on the collaboration.

        Apr 06, 2017 06:02 AM

        I actually thought The Resource Maven bought up a good point as it related to the larger companies “going BIG” on those Copper/Gold projects. She is right that we haven’t seen bigger deals like that in a while.

        The other point she made in her comparison of Kaminak’s takeover by Goldcorp at a 30% premium (similar to Lake Shore Gold’s takeover or Crocodile Gold’s takeover or Calico resources takeover premiums) — versus the Exeter takeover at 60% is a valid point. We used to see 50%-80% premiums on takeovers, so it is nice to see more of a premium going to the Jr miners again so that current shareholders get rewarded when positioning in a company that gets acquired. It does shine a good light on the sector and this recent Goldcorp & Barrick JV, but their deal is a pretty good bell-weather deal for the industry.

          Apr 06, 2017 06:03 AM

          Copper is in A Bull Market
          by @Goldfinger on April 5, 2017

          https://ceo.ca/@goldfinger/copper-is-in-a-bull-market

          Apr 06, 2017 06:09 AM

          Here is another example of Barrick partnering with other companies, and I have to say the collaboration makes a lot of sense and is very encouraging. It would be wise if many companies teamed up like this to move things forward rather that smaller entities struggling under a debt load, or spread over to many jurisdictions to effectively manage on their own. Good for the whole sector.

          ____________________________________________________________________________

          Barrick Announces Strategic Cooperation Agreement with Shandong Gold

          – As a first step, Shandong Gold will acquire 50 percent of the Veladero mine
          – As a second step, both companies will explore joint development of Pascua-Lama
          – As a third step, Shandong will evaluate further opportunities with Barrick

          http://www.barrick.com/investors/news/news-details/2017/Barrick-Announces-Strategic-Cooperation-Agreement-with-Shandong-Gold/default.aspx

    Apr 06, 2017 06:07 AM

    (TGZ) (TGCDF) Teranga Gold Presents At European #Gold Forum 2017 –
    Corporate Presentation Slideshow
    Apr. 5, 2017

    https://seekingalpha.com/article/4060565-teranga-gold-tgcdf-presents-european-gold-forum-2017-slideshow?auth_param=c9otd:1ceakg5:12a79f96a4120ddba9ea6292dd6fcfb9&uprof=45

    CFS
    Apr 06, 2017 06:08 AM

    When Trump meets Xi, what of Taiwan, what of North Korea? @GordonGChang. Arthur Waldron, University of Pennsylvania.
    http://podbay.fm/show/589864479/e/1491451452?autostart=1

    What part of Broke does China understand about the US?

    CFS
    Apr 06, 2017 06:10 AM

    Could China do to the US, what the US did to Russia?

    Would the US survive or will we have Texico and Calexico +….

    Apr 06, 2017 06:54 AM

    When was the last time you saw gold in such a narrow flat range over a couple of weeks? Really strange.

    CFS
    Apr 06, 2017 06:24 AM
    Apr 06, 2017 06:33 AM

    Notice the chart symmetry on the GDX daily chart around the 1st of February. The cup shaped bottom in December was preceded by a small u-shaped consolidation, which was in turn preceded by a large drop in November.

    Currently we got a cup shaped bottom in March followed by a u-shaped consolidation. Now, do we do the opposite of the huge and rapid drop in November and instead get a huge a rapid rise soon?

    Apr 06, 2017 06:37 AM

    Nunes recuses himself on Russian probe.. zh…….this should be intresting

      Apr 06, 2017 06:38 AM

      Next will be Trump recuses himself on Russian probe

      Apr 06, 2017 06:56 AM

      That looks about right to me spanky….. Nice annotation.