Another day another 1000+ down more for the US markets – When will this end?
Chris Temple joins me on another wild day for the markets. Investors are scared again today and selling is hitting almost everything. We try to make light of it all.
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You will not be seeing me there.
FEMA evacuates Atlanta office over coronavirus scare
DANG Jerry!
Even FEMA will be seeing FEMA in the FEMA camps!
(SILV) (SIL) SilverCrest Announces Significant Babi Vista Vein High-Grade Expansion
by @newsfile on 9 Mar 2020
2.1 Metres est. true width at 12,740 gpt AgEq
1.1 Metres est. true width at 13,022 gpt AgEq
1.6 Metres est. true width at 5,831 gpt AgEq
https://ceo.ca/@newsfile/silvercrest-announces-significant-babi-vista-vein-high-grade-0674c
Those are ridiculously high grades, albeit over shorter intercepts, but wow!
Silvercrest is selling off like everyone else though regardless, and they did just announce a $75 million capital raise today, so they are getting the funds while there is still funds to be had.
(SILV) (SIL) SilverCrest Announces C$75 Million Bought Deal Financing
by @nasdaq on 11 Mar 2020
https://ceo.ca/@nasdaq/silvercrest-announces-c75-million-bought-deal-financing
while there ARE (not IS) funds to be had….
My grammar teacher would be so ashamed. 😉
Not the case for any teacher in Ontario. They’d be too busy enjoying retirement in their 50’s with a full pension to worry about anything trivial. 😏
Ah the good life… (haha!)
(MKO) (MAKOF) Mako Mining – Drilling at Las Conchitas Extends Near Surface, High-Grade Gold Mineralization, Highlighted by Intercepts of 32.73 G/t Gold Over 3.1 Meters and 30.61 G/t Gold Over 3.4 Meters at the Bayacun Zone
by @newswire on 11 Mar 2020
https://ceo.ca/@newswire/drilling-at-las-conchitas-extends-near-surface-high-grade-8aff1
One would think with $MKO Mako Mining putting out continuous good news that $FISH would be responding a bit better since it has a 3% Net Smelter #Royalty on San Albino.
https://sailfishroyalty.com/index.php/projects/san-albino-gold-stream/
The DOW is right on the 200 week SMA, 200 month, and 50 month SMAs. One wonders what next trick the government and Federal Reserve will use to try to prop up the world and this country’s stock markets. The corona virus has and will cause some significant damage to the global economies and demand should not recover anytime soon. Then you have the oil debacle which is fine for gas pump prices and the consumer and also some product prices. However, with many gas/oil producers, service companies and other related companies sitting on gobs of debt with much of it in triple B bonds that will soon move into junk status, the coming financial storm of debt in billions could rattle the markets and economies more. The view from here is to step aside and not catch a “falling knife” since deductible and copay expenses in the emergency rooms could be quite high expensive. There will be plenty of time to purchase low price stocks in the future. The question is whether the government/Federal Reserve ammunition is now so limited as not to catch that knife before it hits resistance. This may finally be the beginning of the end game that so many of us have predicted for years.
People are always speculating that the FED might be overrun – finally. I don’t see why that should be. All they need is unlimited funds (check) and the ability to buy stocks directly (check soon) like they do in Japan, where the gov’t owns 80% of the stock market. So it seems to me, if there really is the will to save the markets, they will be able to do it.
Agreed with the stock buying.
Dow is 23,657. 2:45 pm east 3-11-20
The Dow hasn’t breached the 233 week MA since 2011:
https://stockcharts.com/h-sc/ui?s=%24INDU&p=W&yr=9&mn=9&dy=0&id=p25083487770
Like most of the days the last 2 1/2 weeks, today was another Monty Python “Bring Out Your Dead” type of trading day. It’s been really brutal lately, and my biggest regret is not having more cash to deploy into this carnage. I did pick up my first Oil positions since 2016 today split evenly between the ETFs (XLE) and (XOP), as the oil & gas stocks are getting killed out there.
Ex, I understand your pain. Fortunately as I’ve said before, I have a large cash position and am just waiting for the carnage to end. I don’t believe there’s any hurry even if the Fed announces they’re going to buy S&P futures—-however, they probably might not announce it and do it quietly. This year will be a good time to add to the gold producers and pick up some oil stocks.
Yeah, I agree Doc, and like I said my biggest regret is not having had a larger cash position, but I felt the Gold & Silver miners were going to perform better with the higher Gold price than they did, and that I could scalp those wins to raise the cash for the market rout. With the Coronovirus fueling the move down in the general markets as a “Sell Everything” type of decline, it really didn’t help bring new buyers into the PM stocks or Resource markets more broadly to have this Oil confrontation at the exact same time.
I just added my first tier of (XLE) and (XOP) as a starting point and prepared to average down in 1-2 more tranches, but they are pretty liquid and easy to trade. I don’t feel like I’m overpaying too bad entering Oil stocks for the first time since 2016 at these levels, and often I’m a bit early getting positioned in trends, but when they prove out like Rare Earths in 2010-2012, or like Lithium did in 2016-2017, or Cobalt in 2018, or Gold in 2016, etc… then the moves higher can be quite explosive with the easiest percentage gains in the initial moves off the low.
I expect more pain in the Oil Patch, but it helps me to just get a toehold tracking position and then average into and today was Day 1 for me back in Oil stocks, and neither was a very large position, but I’ll grow it over time.
As for the Gold, and Silver, and Base Metals stocks, it has been painful in my portfolio, but it just surprised me how strong and fast the correction has been. There have literally been double digit down days in about 1/3 of the companies in my portfolio at any one time, but some do bounce in the days after, only to do it again. I don’t remember seeing carnage this extreme since 2013 in the PM junior miners (but it hasn’t been quite as bad in the larger miners or GDX and GDXJ).
Someone today wrote me about someone that lost 86% of the funds they had invested in Juniors. These are extreme conditions we are seeing and not the garden variety corrective move.
We’ll see how it goes…
Ex:
I looked at the DOW, S&P and Nasdaq today and they had only 5-7% drops Then I looked at my miners relative to gold/silver prices and found 43% of them down 10-25%. Seems a little harsh in the scheme of things. On the bright side, Mako held in there. Somebody must of spilled coffee on the list of miners to be trashed today and the algo guy couldn’t read it.
Yeah, the junior miners have been thoroughly trounced since late February, and there have been some waterfall decline days that are definitely taking the elevator down.
(MKO) Mako held in there today because of their continued high grade gold hits, as mentioned in the release which was linked up above. I’m still surprised at how hard Sailfish (FISH) is selling off with it’s exposure to MKO, but a lot of the moves to the downside are happening in companies that doing good work , or that have better production margins or better economic projects at these higher gold prices.
I’m curious to see where some of the quarterly numbers come in on the producers for Q1 where they should be quite profitable at current metals prices, and but those figures won’t be out until April or May. In the meantime, letting the beatings continue until morale improves.
Ur-Energy (TSX: URE, NYSE: URG) – Two Can Really Ease the Pain
by @CRUXinvestor on 11 Mar 2020 #VIDEO
Interview highlights:
– Company Overview
– Section 232: Drivers Leading to the Petition
– DOE Announcement: $150M Distributed How and For What?
– Business Plan: Decisions, Cost Cutting Measures and 2019 Sales & Inventory
– Contracts vs Spot and the Likelihood for Junior Company Funding
– Value Creation and Moving Forwards: Where Will UR-Energy sit in 2021?
– Struggles Fuelling M&A Talks: A Look at the Unfolding Situation
https://ceo.ca/@cruxinvestor/ur-energy-tsx-ure-nyse-urg-two-can-really-ease-the-pain
speaking of Uranium miners….. I added to my NXE Nexgen position today for the first time in years, as the selling has been so extreme for so long, and this is the largest and most economic Uranium deposit found since the last bull cycle, and it is a true Tier 1 asset that is on March Madness fire sale.
NXE is now almost back to levels it was Pre-Discovery at Arrow. It’s nuts!
(UUUU) Energy Fuels has has a few really good runs from late 2016 into 2017, in the fall of 2017, the move up most of 2018, and another rally in early 2019 on the Section 232 news, but now even it is trading at levels below when Uranium was trading at $17-$18 in late 2016 and late 2017. Uranium is at $25, and if anything the market is closer than ever to the utility companies starting to set up longer term off-take contracts, but the companies have sold off like there will be no more Uranium mining by the end of this year. Wild times!
I may also add some to UEC soon and pick back up my position in DNN in the Uranium space.
It’s just hard to allocate much to Uranium with Gold, Silver, Zinc, Copper, and Oil stocks selling off in such a huge way.
I may need to sell off any remaining collectibles I have to throw those funds at the resources stocks, because this seems like a very unique period to be accumulating for the long game.
It’s amazing—there are good odds you’ll be able to get UEC and NXE for $.25.
$.25 in NXE or UEC…. Yikes!
Like Doc said, try not to catch a falling knife. Get on the sidelines and just hold some cash for the time being as nearly everything is getting sold-off. PMs junior miners have been smashed… Poor bastards!
I heard raise cash, not prepare for a 52 week low in JNUG. Have we hit the bottom of Doc’s U-shape bottom? Gold can only crash now, so that the Chinks can scoop it up, of course, with Soros blessing…
Quote #1 from Bob Moriarty over at ceo.ca:
@fingerprint42 – “Guys The Guardian said this today, “Coronavirus could cause crash on scale of 2008, Lagarde warns” She’s wrong on only two counts. The virus didn’t cause it, it was in the cards before the virus and it will be far worse than 2008. I did warn people well in advance and was ignored. Do so at your peril. These are the worst markets I have ever seen and frankly I see no way to trade them. At the end of the day gold will have it’s day. But it’s not going to be tomorrow.”
Quote #2 from Bob Moriarty over at ceo.ca:
@fingerprint42 – “We are in a deflationary crash. Debt is simply not going to get paid and the money is going to evaporate. Most people can’t come to grips with the concept but it’s simple. Money is loaned into existence and when it is defaulted, it disappears. Frankly the banks are totally screwed. This is way too big to paper over. We will have a global financial reset and gold will be part or all of the solution. Banks hate the virus, they know their loans will never be repaid and the derivatives are going to take them down. DB is on the verge of collapse right now and it will drag the rest of the world with it. Something really bad is happening behind the curtain and we don’t know what just yet.”
These are interesting points Excelsior. I could not agree more on Bobs concept of defaulted loans. Once people forego their debt obligations it is absorbed back into the system for someone else to have a crack at. This applies on all levels, from the aspiring young adult trying to pay off their personal loans all the way upto the banks and governments.
Regarding what so called influential people believe roiled the markets: I believe they are just pedalling easy theories and popular answers that are regurgitated throughout the various media platforms. All the while knowing what is really going on behind closed doors. I mean Christine Lagarde was the French finance minister during the GFC and then went on to be the chief at the IMF. Im willing to bet someone in her shoes has some inside info.
Yes, when the loan defaults pop the derivative bubble, and the whole house of cards comes tumbling down, it could well be the worst financial situation we’ve seen since 1929, and far worse than 2008-2009 GFC.
This has been cued up for years, and the coronavirus and Oil market production and price wars are just the scapegoat to pin the mess too, so people don’t peek behind the curtain to see what is really going on.
Rick Rule: Threatened Pandemic Could Lengthen Resource Bull Market
MiningStockEducation #AudioInterview
0:15 Introduction
2:57 Broker’s perspective on recent gold stock sell-off
4:49 Technical damage from last week’s gold sector sell-off?
5:49 Commentary on small producers self-funding exploration
7:26 Private placements always need to offer warrants?
9:02 How often have you exercised PP warrants?
11:28 Discussing appropriate G&A expenses
15:14 Okay with management extending & repricing options?
16:11 Commentary on typical Vancouver IPO share structure
18:00 Are royalty companies overvalued now?
19:47 Discussing investable management teams
22:18 Final 2020 resource investing advice
Well, the WHO’sters just declared a world wide pandemic…DOW down over 1100…see you boys in the FEMA camps.