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A look at the gold stock sector

Cory
September 7, 2017

Doc and I have been chatting a lot about the gold price but in this segment we look at gold stocks in general. From the daily chart to the monthly chart for GDX we assess the potential of a pullback with the metals as well as the upside potential.

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Discussion
65 Comments
    Sep 07, 2017 07:55 AM

    Off topic, the insurance companies will not be paying out after Irma is gone, they will however declare bankruptcy, and the banks in Florida and The Caribbean that sell insurance will be in big trouble. DT

      Sep 07, 2017 07:11 AM

      The real estate offices on Flagler Street in Miami won’t be selling all those overpriced homes if Irma hits Miami this weekend. Is this a replay of the summer of 1926. DT

    Sep 07, 2017 07:55 AM

    Matthew, USAS has doubled since July 9th. Have you sold any yet?

    Sep 07, 2017 07:02 AM

    USA has just started to move, they are opening their third mine at the end of this month and with USAS past $4 and USA past $5 CDN the institutions will be buying in. Not a time to sell especially with their low float. DT

      Sep 07, 2017 07:54 AM

      DT; you could be right. It appears that it wants to break out on the monthly chart which would be huge. I wish I owned more of this stock.

      Sep 08, 2017 08:05 AM

      (USAS) (USA) Americas Silver Corp. :USAS-US: Earnings Analysis: Q2, 2017 By the Numbers : September 7, 2017
      September 7, 2017 – by CapitalCube

      > Summary numbers: Revenues of USD 17.18 million, Net Earnings of USD 0.88 million.
      > Gross margins widened from -0.84% to 12.24% compared to the same period last year, operating (EBITDA) margins now 17.68% from -1.10%.
      > Year-on-year change in operating cash flow of 6,676.55% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
      > Earnings growth from operating margin improvements as well as one-time items.

      http://www.capitalcube.com/blog/index.php/americas-silver-corp-usas-us-earnings-analysis-q2-2017-by-the-numbers-september-7-2017/?yptr=yahoo

    CFS
    Sep 07, 2017 07:59 AM
    Sep 07, 2017 07:04 AM

    I don’t think most experts have been bullish enough the Canadian dollar but I bet they’re figuring it out now! It looks superb…

    http://stockcharts.com/h-sc/ui?s=%24CDW&p=W&yr=2&mn=7&dy=0&id=p58410946954&a=493718945

    Sep 07, 2017 07:35 AM

    I warned that the U.S. dollar was bearish when it mattered. Here’s a simple (and unaltered) chart I posted in March:

    http://stockcharts.com/h-sc/ui?s=UUP&p=D&yr=1&mn=1&dy=11&id=p54658871732&a=511365632

    Tom
    Sep 07, 2017 07:16 AM

    long PLAY

    Sep 07, 2017 07:17 AM

    Wow – Primero getting slammed.
    Not sure they are going to make.
    Seems only hope is a buy out.

      Sep 07, 2017 07:36 AM

      Maybe MUX could buy the rest of PPP@.03

        Sep 07, 2017 07:05 PM

        Uuuuggghhhh! Stop the bleeding…… 🙁

        It is not even $PPP anymore, but rather $PPPMF (PPP Mother Frackers)

          Sep 07, 2017 07:20 PM

          I really thought when the strike ended, and they made some headway on the Mexican tax issues (which they did on both fronts) that the shares would snap back a little more, as they were already at a ridiculous level.

          However, now that they have ditched any more exploration on San Dimas this year and are mostly done wrapping a transaction to sell it as well, then it will help out their balance sheet, but they’ll have sold both their producing mines this year.

          All they’ll have left are a few development projects and exploration projects at that point. I expect them to announce the sale of San Dimas in the next month or 2.

    Sep 07, 2017 07:29 AM

    Doc, did you buy back Novo today? There have been some good news since you sold it.

      Sep 07, 2017 07:55 PM

      Jay, not yet. Momentum is to the downside yet along with the fact the 20 day MA of the BBs have been compromised. It looks like I’ll be taking a small position in the next couple of weeks and then add over time as the technicals indicate.

        Sep 08, 2017 08:39 AM

        Thanks Doc!

    Sep 07, 2017 07:30 PM

    Something seems to be quietly cooking with GMV Minerals: GMV: TSX-V

    Sep 07, 2017 07:05 PM

    The miners continue to act very well. Let’s see if they can remain strong into the weekly close tomorrow…

    http://stockcharts.com/h-sc/ui?s=%24HUI&p=W&yr=7&mn=0&dy=0&id=p97861576005&a=370540630

    Sep 07, 2017 07:16 PM

    Doc, as metals move higher and one wishes to purchase the actual bullion, do you think silver bullion coins are a better bet than gold or visa versa? And, is a pullback in the cards near term making it a better time to purchase?

    Sep 07, 2017 07:57 PM

    Pardu, I’m not going to purchase the actual bullion here but am hoping for a pullback. I can’t believe we’re going to knife right through 1375, 1400, and 1450 for gold on this run. These are major resistance levels and to get through all of them would be herculean. On a pullback, I an personally going to be purchasing gold coins instead of silver since I own a lot of silver in comparison to my position in gold bullion. I don’t think either of the metals should pull back significantly due to the narrowing of the BBs on the monthly charts.

      Sep 07, 2017 07:06 PM

      As always, thanks Doc

      Sep 07, 2017 07:20 PM

      Agreed Doc.

    Sep 07, 2017 07:46 PM

    Gold: $1,400 Here We Come?
    The precious metal is climbing today. Will it keep climbing?
    ByJohanna Bennett – Sept. 7, 2017

    http://www.barrons.com/articles/gold-1-400-here-we-come-1504797571?mod=yahoobarrons&ru=yahoo&yptr=yahoo

      Sep 07, 2017 07:47 PM

      The Most Important Gold Charts We’re Watching Today

      SEPTEMBER 7, 2017 BY JC

      http://allstarcharts.com/gold-charts-need-watching/

      Sep 07, 2017 07:22 PM

      I would be surprised if it hits 1400 at this stage. Mind you I was looking for a pullback at the 1330 level, so who knows…

        Sep 08, 2017 08:12 AM

        Ozibatla, I do believe Gold has a shot at $1400 later this year, but yes I agree with you that it seems likely to have a corrective move first to build up the juice to get through $1377.50 (the high from 2016).

        After Gold & Silver have a “Pause That Refreshes” then we may see them make a move at a higher high for 2017 closer to the $1400 mark.

          Sep 08, 2017 08:35 AM

          I think it will go well above 1400 before the end of the year.

          Sep 08, 2017 08:26 PM

          Good thoughts Excelsior.

          If and when the metals do pullback and consolidate it would be good to see them do so at a figure not far under where we currently sit. That way they put in a nice support level to bounce back off when another rally ensues. $1300 therefore is key I believe as this will ensure that the former solid resistance level has now become solid support.

          $1400 for gold and $20 for silver would be a good result at years end.

    Sep 07, 2017 07:57 PM

    Charts of The Day: Silver
    Even though the rally in precious metals has already run for quite some time, silver is looking very interesting in terms of more upside potential ahead:

    The Hedgeless Horseman – September 7, 2017

    http://www.thehedgelesshorseman.com/gold/chart-day-silver/

    Sep 07, 2017 07:58 PM

    We’re Going to Need More Lithium
    There’s plenty in the ground to meet the needs of an electric car future, but not enough mines.

    By Jessica Shankleman, Tom Biesheuvel, Joe Ryan, and Dave Merrill

    https://www.bloomberg.com/graphics/2017-lithium-battery-future/

    Sep 07, 2017 07:54 PM

    Well gold futures popped through the 1353.10 level that Rick A mentioned yesterday.
    So lets see if we get that run up to at least 1474.00 that he was looking for?
    Cheers.

      Sep 08, 2017 08:14 AM

      That woudn’t hurt my feelings, but we may need a breather and move down first as the resistance at $1377.50 (last year’s high) may smack gold down on the first attempt.

        Sep 08, 2017 08:14 AM

        woudn’t = wouldn’t