Sean Brodrick – Wed 22 May, 2019

Oil and Cannabis – Weighing The Good And Bad In These Two Sectors

While the oil and cannabis markets are quite different Sean Brodrick sees an opportunity in both. We breakdown some of the positive and negative drivers that are on tap.

If you would like more information on Sean’s new newsletter the Marijuana Millionaire Portfolio please email me at Fleck@kereport.com and I will put you in touch with Sean for more information.

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Comments:
  1. On May 22, 2019 at 9:03 am,
    spanky says:

    Silver’s 5 week RSI behavior over the last year looks something you would see in a bear market.

    The fact that we are getting these types of extreme selling events back to back is extremely concerning. The last time the 5 week RSI acted similarly was just before the plunge in 2013.

    This is either going to turn out to be one of the greatest headfakes of all time, or the most anticipated break downs in history.

  2. On May 22, 2019 at 9:17 am,
    spanky says:

    GDXJ about to be pushed off the edge of a cliff.

  3. On May 22, 2019 at 9:23 am,
    spanky says:

    Massive divergence today between bullion and miners so far.

    GDX daily stochastics have turned back down from neutral and have plenty of room to accommodate a massive hammering.

  4. On May 22, 2019 at 9:29 am,
    spanky says:

    The GDX:SIL daily chart over the last 3 years is surreal. Literally a straight line up from the low in August 2016. It is massively overbought now.

    Today it is correcting a bit by GDX going down more than SIL. That is probably how it will correct in the near term–with GDX catching down to SIL over the next few days and weeks.

  5. On May 22, 2019 at 9:36 am,
    spanky says:

    SIL has been in a relatively well defined down channel for the last 2.5 years. The next stop is $19-20, depending on how rapid the downthrust plays out.

  6. On May 22, 2019 at 9:42 am,
    spanky says:

    Holy cow, platinum looks like it is collapsing. The lower weekly BB is $776, and it looks like it may actually get there this week or next! It needs to reverse into Friday or it is going to looks extremely dire.

    • On May 22, 2019 at 9:46 am,
      spanky says:

      Platinum is already down $120 (about 13%) in 6 weeks. That is nuts. And the thing is, it’s shaping up to get worse in the near term!

  7. On May 22, 2019 at 9:51 am,
    spanky says:

    gold up, silver up, miners down.

    stocks up, gold up, miners down.

    stocks down, gold up, miners down.

    stocks down, gold down, miners down.

    See a pattern here?

    OK. I am done ranting. Time to get some popcorn and watch this horrow show continue to unfold.

  8. On May 22, 2019 at 10:17 am,
    spanky says:

    As nervous as I am, I am still holding out hope that gold’s 1267 swing low holds up. They are milking the drama for all it is worth. I imagine if that swing does break, it will do so dramatically.

    • On May 22, 2019 at 10:27 am,
      Dick Tracy says:

      Spanky is an NN, short for Nervous Nellie, maybe you should take a valium before everything goes over the cliff. LOL! DT

  9. On May 22, 2019 at 10:28 am,
    OOTB Jerry says:

    Wacky weed advice…

  10. On May 22, 2019 at 10:31 am,
    OOTB Jerry says:
  11. On May 22, 2019 at 11:13 am,
    Matthew says:

    Way off topic:

    Hundreds of Respected Scientists Sound The Alarm With MAJOR WARNING About 5G Health Effects
    https://www.youtube.com/watch?v=of8ngbxDuxw

  12. On May 22, 2019 at 12:04 pm,
    spanky says:

    Since 2016, Japanese yen has outperformed silver, that’s how pathetic silver has been. It’s actually incredible when you think about what the BoJ has done to its balance sheet since 2013.

    Silver priced in yen actually hit a new 9 year low in Sept last year and is now on the cusp of breaking down even further. I don’t know whether to laugh or to cry.

  13. On May 22, 2019 at 12:14 pm,
    Matthew says:

    Silver is trading below its 1983 high. Is there any other commodity that is even close to doing the same? I doubt it. The highs for both gold and platinum that year were just over $500.
    Somehow, my screen is all green today (almost +3%).

    • On May 22, 2019 at 12:20 pm,
      spanky says:

      You must be a stock picking genius, because all I see across a host of highly liquid miners is red.

      • On May 22, 2019 at 12:52 pm,
        Matthew says:

        Whatever the reason, it’s probably not a bad sign for the sector. Such divergences rarely have been.

        • On May 22, 2019 at 1:12 pm,
          spanky says:

          There have been many periods during the last few years where IPT positively diverges, but that didn’t stop it from making lower lows and lower highs all along the way.

          I expect stocks like AXU and IPT, which have held up relatively well, to get murdered if silver continues its descent into hell.

          • On May 22, 2019 at 1:20 pm,
            Matthew says:

            I’ve watched both stocks for over ten years and AXU does not have nearly the same value as IPT when it comes to “predicting” anything. You have to “live it” though. What I’m talking about can be hard to discern on the charts after the fact.
            Btw, notice that AXU finished down 2% today while IPT finished up 2%. AXU has always been more likely to move with everything else.

            I still expect GDX to soon dip below $20.20.

          • On June 4, 2019 at 5:40 pm,
            paul says:

            GDX does not look like it will, dumb a**.

    • On May 22, 2019 at 12:24 pm,
      spanky says:

      IPT.V is printing a second black candle in a row today. It’s giving you every opportunity to jettison it.

      • On May 22, 2019 at 12:53 pm,
        Matthew says:

        Few IPT holders would like the result if I tried to jettison my shares in one day, I can assure you of that.

        • On June 4, 2019 at 5:43 pm,
          paul says:

          Yeah, sure, dumb ass.

    • On May 22, 2019 at 12:33 pm,
      spanky says:

      Silver looks like it did in 1990–on the cusp of breaking major LT support. Of course it bottomed about a year later, but you would have had to endure a 40% drawdown and then waited until 2003 until the 1990 level was permanently recovered.

      I figure if it breaks $14 this time, it’s headed to about $7 based on the upside down cup and handle.

      • On May 22, 2019 at 12:55 pm,
        Matthew says:

        It would take a very special event to take it to $7 and it wouldn’t be there for long.

        • On May 22, 2019 at 1:09 pm,
          spanky says:

          I don’t think it would go directly to $7. It would likely take a couple of years to get there.

          • On May 22, 2019 at 1:20 pm,
            Matthew says:

            I’m saying there’s no way it gets there in that fashion.

          • On May 22, 2019 at 1:26 pm,
            spanky says:

            I don’t have any clue how you can say that with a straight face. Seriously, look what has transpired over the last 8 years. Look back to what transpired between 1980 and 1992.

            You keep saying silver will rise when gold breaks out. I’m sure it will, but from what level?

            I know you don’t care where price goes, but some of us do.

          • On May 22, 2019 at 1:36 pm,
            spanky says:

            You’ve also got the 50 WMA about to cross below the 200 WMA imminently in GLD for the first time since? Wait for it…. 2013.

            Buy Buy?

            No, bye-bye.

          • On May 22, 2019 at 1:38 pm,
            spanky says:

            H&S in GDX points to $17 target. bullish!

          • On May 22, 2019 at 1:40 pm,
            spanky says:

            Add in the breakout in GSR (first target 105) and things ain’t looking too hot for metals for likely years.

          • On May 22, 2019 at 2:20 pm,
            Matthew says:

            It’s easy to say that with a straight face when you understand that:
            – the dollar is a shadow of its 1983 self, and
            – newly mined supply would dry up quickly due to the current production costs

            There’s more but those two items are good enough.

  14. On May 22, 2019 at 12:18 pm,
    spanky says:

    The extreme divergence between gold and silver miners is encapsulated no better than by comparing NEM vs PAAS over the last two months. PAAS has disturbingly broken down well below its 200 and 300 WMAs. Meanwhile, NEM has managed to regain its 200 WMA.

    If you are long silver miners you can either pray that there is a V-shaped reversal that is imminent, or you can face the grim reality personified in the PAAS chart, which looked so strong with the 200 WMA having crossed above the 300 WMA last year. It’s pulling a HL.

  15. On May 22, 2019 at 1:14 pm,
    spanky says:

    Lovely black candles painted in SLV and SLV:GLD today. Good stuff.

  16. On May 22, 2019 at 1:17 pm,
    spanky says:

    Tomorrow could be the day where silver really breaks down in ernest vs gold.

    This is what bull markets look like folks.

    • On May 22, 2019 at 2:28 pm,
      Matthew says:

      Yup. Look at the start of the bull 20 years ago. Gold way outperformed silver until the end of 2003 when silver finally caught up very quickly…
      https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&st=2001-01-01&en=2005-05-19&id=p86874020776

    • On May 22, 2019 at 2:33 pm,
      Matthew says:

      The evidence so far strongly suggests that silver is going to catch up to gold more than gold is going “catch down” do silver.

      https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&st=2001-01-01&id=p12361157387&a=666732317

      • On May 22, 2019 at 3:25 pm,
        spanky says:

        Sure, eventually.

        But look at the ominous GSR. That gap on your chart could grow a lot wider. Not only that, the GSR made a top in 1987 but then continued to rise for 4 more years to a higher high. In fact, the 1987-1991 GSR chart looks eerily similar to the current one in that the 50 WMA got close, but never made a a death cross. Basically, 1987 was a fakeout, just like 2016 was.

        there is zero reason to doubt the GSR gets to 105 at this point. I guess it could get there quickly from here, but I guarantee you it will entail tons of pain for silver longs and miners.

        Amazingly, the GSR peaked in 1991 at, you guessed it, 105 ($gold:$silver)! That is an absolutely incredible coincidence. And even then, one could hardly say silver was in a new bull market until a decade later.

        • On May 22, 2019 at 3:27 pm,
          spanky says:

          BTW it took the GSR about 6 months to get from 88 to 105 back in 1991.

          • On May 22, 2019 at 3:43 pm,
            Matthew says:

            If it reaches 105 again it will be due to gold leaving silver further behind, not due to silver dropping to $7.

  17. On May 22, 2019 at 1:22 pm,
    spanky says:

    $gold closed today with yet another black candle. It is almost guaranteed to break below $1267 tomorrow, and I would expect it to in a big, big way once that level gives way. Bring it on the bulls say, just like they were saying in 2013.

  18. On May 22, 2019 at 2:48 pm,
    bonzo b. says:

    Silver at $7 does not scare me as it means we are just $7 from the bottom but hundreds of dollars from the top, so it’s time to buy.

    • On May 22, 2019 at 3:08 pm,
      spanky says:

      If you are prepared to wait 15 to 20 year for capital gains, have at it. I am sure lots and lots on PM bulls were saying the same exact thing as you back in the late 80s. If you are just coming out of the womb, I think it makes a great investment now.

      • On May 22, 2019 at 3:20 pm,
        Matthew says:

        This is definitely not the 80s in any significant way.

        • On May 22, 2019 at 3:31 pm,
          spanky says:

          the GSR is doing the exact same thing.

          1987=2016
          1991=2020?
          2003=2032?

          • On May 22, 2019 at 3:45 pm,
            Matthew says:

            I don’t buy that at all. You must also consider where other sectors are at compared to back then: stocks, bonds (interest rates), commodities, etc.

    • On May 22, 2019 at 3:22 pm,
      Matthew says:

      $7 today would easily be a new all-time low in real terms.