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Wrapping up today for US markets, oil, and gold

Cory
April 7, 2020

Chris Temple wraps up today with his thoughts on the roller coaster ride for US markets today as well as the drop in oil and gold. Some key comments on what will drive gold stocks during this volatile time in all sectors.

Click here to visit Chris’s site – The National Investor.

Discussion
15 Comments
    Apr 07, 2020 07:07 PM

    Hearing that Chris told his subscribers to short oil today makes me feel better about selling half my RDS.A today@38.6 I’ve owned Shell since 1979 and thought I’d never sell, but after watching it fall to 20 and then soar to 39 in a few days, I thought good about selling half my Shell to have some cash for the coming Depression brought on by Fauci.

    Apr 07, 2020 07:32 PM

    Probably a good plan, bonzo … and to think it wasn’t many weeks back I was mulling over recommending Royal Dutch Shell. Still may later, as it’s one of the true global titans…but likely after it breaks that 20 low first.

    Apr 07, 2020 07:25 PM

    Well Chris, if RDS falls below 20 again it will be yielding about 20%, unless they cut the dividend, and the last time they cut the dividend was during WWII when the Nazis took over Hollandia. So I’ll buy back some at that point unless something better shows up. Do you follow SU? CVX at 40 would be a nice buy.

    Apr 07, 2020 07:31 PM

    The Coronavirus Is the Biggest Emerging Markets Crisis Ever
    The pandemic is starting to topple one of the pillars of the globalization era.

    Adam Tooze – March 28, 2020

    “Between 2007 and 2019 the value of internationally traded emerging market corporate debt almost quintupled from $500 billion to $2.3 trillion. And, over a similar period, foreign investors bought up one-quarter of the local currency sovereign bonds issued by emerging-market governments, helping to pay among other things for impressive new infrastructure. Observers of the world economy have been warning for some time that this global debt mountain harbors risks. This is particularly true for so-called frontier borrowers, high-risk low-income countries, whose commercial hard-currency debt tripled over the five years to 2019 to more than $200 billion. At the end of 2019, almost half of the lowest-income countries in the world were already in debt distress.”

    “Now the entire logic of emerging-market investing has gone into reverse. As investors everywhere run for safety, the dollar has surged, making dollar debts more expensive. Commodity prices have tanked. With China, Europe, and the United States shut down, exporters of manufactured goods and commodities have no one to sell to. Hardly surprising that the stock markets from Jakarta to Sao Paulo are in free fall. Emirates, the iconic airline of globalization, has shut down. In the past week, gigantic fiscal and monetary efforts have breathed a flicker of life into stock markets. The sell-off has been too massive for investors not to hunt for bargains. A huge injection of dollar liquidity has pushed the dollar off its highs. But the actual recession in the world’s developed economies has only just begun, and the pandemic has not even arrived in full force in the emerging markets yet.”

    https://foreignpolicy.com/2020/03/28/coronavirus-biggest-emerging-markets-crisis-ever/

      Apr 07, 2020 07:15 PM

      Michael Burry of ‘The Big Short’ Slams Virus Lockdowns in Tweetstorm

      Reed Stevenson – Bloomberg – April 7, 2020

      “Michael Burry, the doctor-turned-investor who famously bet against mortgage securities before the 2008 financial crisis, has taken to Twitter with a controversial message: lockdowns intended to contain the coronavirus pandemic are worse than the disease itself.”

      “Universal stay-at-home is the most devastating economic force in modern history,” Burry wrote in an email to Bloomberg News.

      “He told Bloomberg News last month that he placed a “significant bearish market bet that is working out for now,” without providing details except to say it was a trade of a “good size” against indexes. He said the pandemic could unwind the passive investment boom, which he has compared to purchases of collateralized debt obligations that fueled the pre-2008 mortgage bubble.”

      https://www.yahoo.com/finance/news/michael-burry-slams-virus-lockdowns-042338321.html

    Apr 07, 2020 07:55 PM

    Uranium price up today 3.83% to $28.70. I had to rub my eyes as I couldn’t believe it was finally starting to move up after getting trapped in the $23-$26 range for a while.

    The U stocks really responded to this trend change.

    Symbol – #Uranium Stocks – Daily Change %

    AEE.AX Aura Energy Limited +50.00%
    FCU.TO Fission Uranium Corp. +47.06%
    BSK.V Blue Sky Uranium Corp. +23.81%
    MKA.V Mkango Resources Ltd. +20.00%
    BOE.AX Boss Resources Limited +18.92%
    PEN.AX Peninsula Energy Limited +18.18%
    URG Ur-Energy Inc. +18.08%
    SYH.V Skyharbour Resources Ltd. +17.39%
    LAM.TO Laramide Resources Ltd. +14.00%
    GXU.V GoviEx Uranium Inc. +12.50%
    VMY.AX Vimy Resources Limited +12.50%
    GGG.AX Greenland Minerals Limited +12.36%
    UUUU Energy Fuels Inc. +11.21%
    U.TO Uranium Participation Corporation +11.20%
    FSY.TO Forsys Metals Corp. +11.11%
    WUC.CN Western Uranium & Vanadium Corp. +10.00%
    AAZ.V Azincourt Energy Corp. +10.00%
    UWE.TO U3O8 Corp. +10.00%
    GCL.L Geiger Counter Limited +9.75%
    AZZ.TO Azarga Uranium Corp. +9.68%
    PLU.V Plateau Energy Metals Inc. +9.52%
    CVV.V CanAlaska Uranium Ltd. +9.38%
    BMN.AX Bannerman Resources Limited +9.37%
    FUU.V Fission 3.0 Corp. +9.09%
    UEC Uranium Energy Corp. +8.32%
    MGA.TO Mega Uranium Ltd. +6.25%
    NXE.TO NexGen Energy Ltd. +6.15%
    ERC.V Eros Resources Corp. +5.56%
    DNN Denison Mines Corp. +4.03%
    UEX.TO UEX Corporation +4.00%
    MAW.TO Mawson Resources Limited +2.78%
    LEU Centrus Energy Corp. +2.08%
    URA Global X Uranium ETF +1.75%
    CCJ Cameco Corporation +1.35%
    NLR VanEck Vectors Uranium+Nuclear Energy ETF +0.42%

        Apr 07, 2020 07:23 PM

        We’ve all got our hopes up so many times, it is hard to get too excited at these green shoots, as Uranium investors have had their hopes dashed over and over again ever since Fukushima in 2011.

        I remember investing in Uranium stocks in 2010 and early 2011 when there were articles about a Nuclear Renaissance, and that it was a key energy solution for emerging markets, only to watch it all implode… but the cure for low prices is eventually low prices.

        With most of the production now shuddered, and most of the u miners on life support, then the need for them to have new longer-term contracts with utilities set up at much higher prices than $28 (more like in the high $40’s to $50’s) will eventually jump-start this sector.

          Apr 07, 2020 07:42 PM

          After all the B.S Cameco has gone through, and now the coronavirus, I hope they refuse to contract below $50.

          Plus, long term contracts are no longer needed as a catalyst. Cameco needs to make up for Cigar Lake + Inkai by buying spot. Russia is constructing turnkey reactors and just lost Kazatomprom as a major fuel supplier. China lost Rössing + Husab, as well as Kazatomprom. The spot can easily get to $40 without any long term contracts being signed.

          The first casualties will be the carry traders with their paper short trades on physical uranium. There’s a serious possibility they won’t be able to cover, go bankrupt, and screw utilities out of signed contracts.

            Apr 07, 2020 07:48 PM

            I’d say metronuclear is the first trader to get screwed over

            Apr 07, 2020 07:12 PM

            Interesting thoughts Snowy, and some great points. Many have been discussing what Cameco’s buying in the spot markets may do to the price, and yes Rossing & Kazatomprom not supplying Russia means they’re going to need other sources, and something has got to give with the incentive price to get production to come online. Pricing in the high 40’s to low $50’s should do it. I have little sympathy to the paper shorts that may get squeezed out of existence and would like to see the timeline escalate and get things going in the next few months.

            Apr 08, 2020 08:08 AM

            Cameco closed its port hope facility.

            Apr 08, 2020 08:26 AM

            Crazy news wolfster. Utilities are shacking in their boots at this point. There is minimal UF6 available already. Grant Issac of Cameco has said (months ago at NEI) the risk to utilities is greater than the risks to Cameco. That is playing out in ways no one imagined.

            The US needs ConverDyn open immediately for national security purposes (but this won’t happen)

    Apr 08, 2020 08:18 AM

    The huge conventional Bull Market we just had has survived some terrific shocks, thanks to policies of The Federal Reserve. I have always been a doubter, you just can’t print phony fiat currency and expect a turnaround. Debt levels in the developed World are at nose bleed levels. This time the market will not recover for 2 to 3 years, not until a new currency system is adapted. DT

      Apr 08, 2020 08:08 AM

      That is all part of the globalist plans, to blow up debt balloons so large that they can’t be paid back, to have a big reset, and then introduce their Global currency.

      Goodbye freedoms and liberties, hello global nanny superstate.