Chris Vermeulen - The Technical Traders – Wed 26 Aug, 2020

As the S&P hits all-time highs – Are investors being too complacent?

Chris Vermeulen kicks off today with comments on the US markets recent break to all time highs. We look at volume, breadth, and money flows to determine where the markets could go from here.

Click here to visit The Technical Traders website and follow along with Chris’s trades.

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  1. On August 26, 2020 at 7:41 am,
    Excelsior says:

    U.S. Bond Fund Giant Says Gold Still Has Plenty Of Luster

    Aug. 25, 2020 – Sunny Oh – MarketWatch

    “Gold still looks cheap after accounting for inflation-adjusted yields, says Pimco fund manager.”

    https://www.marketwatch.com/story/u-s-bond-fund-giant-says-gold-still-has-plenty-of-luster-11598374682

    • On August 26, 2020 at 8:08 am,
      Excelsior says:

      Market Function Purchases by the Federal Reserve

      August 20, 2020 – Kenneth D. Garbade and Frank M. Keane – Liberty Street Economics

      “In response to disorderly market conditions in mid-March 2020, the Federal Reserve began an asset purchase program designed to improve market functioning in the Treasury and agency mortgage-backed securities (MBS) markets. The 2020 purchases have no parallel…”

      “Severe disruptions in Treasury market functioning, discussed here, and in the agency MBS market, discussed here, triggered the interventions. Cumulative purchases between March 13 and July 31 amounted to $1.77 trillion of Treasuries and $892 billion of agency MBS. The purchases were undertaken by the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York, acting on instructions from the Federal Open Market Committee (FOMC) to make purchases “in the amounts needed to support [and subsequently sustain] the smooth functioning of [the Treasury and agency MBS] markets.”

      https://libertystreeteconomics.newyorkfed.org/2020/08/market-function-purchases-by-the-federal-reserve.html

      • On August 26, 2020 at 8:10 am,
        Excelsior says:

        The Wolf Street Report: The Zombie Companies Are Coming

        by Wolf Richter • Aug 23, 2020

        “Easy money is a curse for capitalism.”

        https://wolfstreet.com/2020/08/23/the-wolf-street-report-the-zombie-companies-are-coming/

        • On August 26, 2020 at 8:16 am,
          Excelsior says:

          Permanent Economic Damage – Danielle DiMartino Booth

          By Greg Hunter – August 26, 2020

          Former Fed insider Danielle DiMartino Booth is not a fan of the Federal Reserve, especially now, with its massive money printing campaign. DiMartino Booth thinks “the damage to the economy is permanent” and that’s not the only thing here to stay. DiMartino explains, “We are seeing permanent inflation increasing, and we have seen another uptick in initial jobless claims. This is not the data you want to see if companies want to have pricing power. . . . We do have inflation where it is not measured, and that is in asset prices and housing prices.”

          Di Martino Booth says the Fed will do everything possible to keep the money printing going. DiMartino Booth contends, “Anything they can do to keep the printing presses running, any cover they can try and create, any type of narrative they can try and paint that allows them justification to go from a $4.5 trillion balance sheet to a $7 trillion balance sheet. . . . The Fed is looking for cover to continue its constant quantitative easing (money printing) campaign. If it says it is going to let inflation run hot, it has that cover it is looking for. It is always about lower for longer. It is always about keeping the printing press running 24/7.”

          https://usawatchdog.com/permanent-economic-damage-danielle-dimartino-booth/

          • On August 26, 2020 at 8:25 am,
            Excelsior says:

            MISSION POSSIBLE: V Shape Recovery – Market Huddle Ep.92 WTF Clip of the Week

            Market Huddle WTF #VIDEO Clips

            https://youtu.be/8LYn7-kOJYs

          • On August 26, 2020 at 9:07 am,
            OOTB Jerry says:

            She is a little SLOW…..Here at the KER, we (I)…figured it out a long time ago…. 🙂

          • On August 26, 2020 at 9:08 am,
            OOTB Jerry says:

            Referencing the above………
            Di Martino Booth says the Fed will do everything possible to keep the money printing going.

          • On August 26, 2020 at 9:14 am,
            Excelsior says:

            Agreed OOTB, but she was bang on, and it is good to have voices like hers out there pointing out the insanity of FED policy. She’d be a good guest to interview here on the KER, but it would be preaching to the choir. 🙂

          • On August 26, 2020 at 9:16 am,
            OOTB Jerry says:

            Always good, to have confirmation……. 🙂
            Making sure we are not insane….. 🙂

          • On August 26, 2020 at 9:23 am,
            Excelsior says:
          • On August 26, 2020 at 9:30 am,
            Wayne says:

            Actually Di Martino Booth is not a little slow. She, like many others, have been saying for quite some time that the Fed will continue to “print” currency.

          • On August 26, 2020 at 10:25 am,
            OOTB Jerry says:

            No Wayne……..we here at the KER have been saying…IT…. way before she was
            getting any commentary spots…..

          • On August 26, 2020 at 10:39 am,
            Wayne says:

            No OOTB Jerry. All I said was that she, like many others, have been saying for quite some time that the Fed will continue to “print” currency. I did not say she was saying it before you, whoever you are.

          • On August 26, 2020 at 11:21 am,
            OOTB Jerry says:

            Good, Wayne……that still makes here a Little Slow….. lol

          • On August 26, 2020 at 11:23 am,
            OOTB Jerry says:

            her not here……

          • On August 26, 2020 at 11:25 am,
            Wayne says:

            Better a little slow than not at all.

          • On August 26, 2020 at 11:53 am,
            OOTB Jerry says:

            When you are a little slow crossing the interstate, …..it might be all she wrote…. 🙂

          • On August 26, 2020 at 11:59 am,
            Wayne says:

            Yes, but she already crossed it so you can relax.

          • On August 26, 2020 at 12:25 pm,
            OOTB Jerry says:

            Now she is in the weeds…..or in tall grass…with the rest.. lol

          • On August 26, 2020 at 1:57 pm,
            David says:

            Enough with the slow 🙂

          • On August 26, 2020 at 2:02 pm,
            OOTB Jerry says:

            🙂
            Chapter 32….David the Attorney, Slows down the FUN….
            New chapter in the KER HISTORY BOOK…(see Ex for explanation)

          • On August 26, 2020 at 3:31 pm,
            David says:

            OOTB:
            You are right. I will give your football back and head home crying.

          • On August 26, 2020 at 4:38 pm,
            OOTB Jerry says:

            Football is for sissies , Rugby for Men…… 🙂

          • On August 29, 2020 at 1:46 pm,
            Wayne says:

            Obviously you never played the game.

  2. On August 26, 2020 at 7:47 am,
    cfs says:

    Throughout the history of mankind, whenever more currency has been created the price of real things (gold, food, real estate, prices of companies) has ALWAYS increased.
    Of course there are drops or recaluations when prices get out-of-line, because the market pricing mechanism is not perfect.
    However, please note the U.S. (and other countries) are destined to create more money indefinitely. THUS PRICES OF REAL THINGS ARE DESTINED, other things being equal, TO INCREASE INDEFINITELY.

    What really should worry folks is the destruction of companies, by shutting down, caused deliberately by Democrat leaders in positions of power, because of the pandemic of covid.
    Do not be surprised if many restaurant, hotel, travel-related stocks go to zero value/pricing.

  3. On August 26, 2020 at 8:00 am,
    cfs says:

    Ira’s Morning Flash for 8/26/20

    https://www.youtube.com/watch?v=rwpzPJB0mhg

    • On August 26, 2020 at 8:45 am,
      b says:

      I believe Mr Musk.
      Its just a matter of time.

    • On August 26, 2020 at 8:47 am,
      b says:

      There is an asteroid out there that is solid gold, and a moon around 1 of the planets that rains diamonds.

      Once we start to mine off planet, all resources we use will be abundant.

      • On August 26, 2020 at 8:53 am,
        bonzo says:

        We are stardust; we are golden; and we’ve got to get ourselves back to the garden.
        My teeth have lots of gold in them

        • On August 26, 2020 at 8:59 am,
          Excelsior says:

          David Bowie – Ziggy Stardust

          https://youtu.be/XXq5VvYAI1Q

          • On August 26, 2020 at 9:00 am,
            Excelsior says:

            The Rentals – Stardust

            https://youtu.be/HtC1c5ylQAM

          • On August 26, 2020 at 9:16 am,
            bonzo says:

            Hoagy Carmichael , a Hoosier who attended Indiana U., wrote “Stardust.”
            He was a law school dropout like Bing Crosby, Claude Levy-Strauss, and me.

          • On August 26, 2020 at 9:27 am,
            Excelsior says:

            “We are stardust,” Joni Mitchell famously sang in “Woodstock.” It turns out she was right, wasn’t she?

            Iris: “Was she ever! Everything we are and everything in the universe and on Earth originated from stardust, and it continually floats through us even today. It directly connects us to the universe, rebuilding our bodies over and again over our lifetimes.”

            “We really didn’t realize how impermanent we are, and that our bodies are made of remnants of stars and massive explosions in the galaxies. All the material in our bodies originates with that residual stardust, and it finds its way into plants, and from there into the nutrients that we need for everything we do—think, move, grow. And every few years the bulk of our bodies are newly created.”

            https://www.nationalgeographic.com/news/2015/01/150128-big-bang-universe-supernova-astrophysics-health-space-ngbooktalk/#:~:text=All%20the%20material%20in%20our,our%20bodies%20are%20newly%20created.&text=Helium%20is%20not%20in%20our%20bodies.

          • On August 26, 2020 at 9:48 am,
            David says:

            Stardust…what? I was going to vacuum.

          • On August 26, 2020 at 10:49 am,
            Excelsior says:

            Just make sure to clean up all the stardust when you vacuum. 😉

  4. On August 26, 2020 at 8:22 am,
    Excelsior says:

    Uh-oh Elon Musk is going to mine all the gold in space on asteroids. Watch out. Haha!

    ______________________________________

    ELONAGEDDON – Market Huddle Ep.93 WTF Clip of the Week

    https://youtu.be/9Nzoyk3dhUk

  5. On August 26, 2020 at 8:39 am,
    cfs says:

    Silver Viper drills 110.5 m of 38 g/t Ag at La Virginia

    2020-08-26 10:36 ET – News Release

    Mr. Steve Cope reports

    SILVER VIPER DISCOVERS A NEW, BROAD ZONE OF MINERALIZATION AT EL RUBI, Sonora, Mexico.

  6. On August 26, 2020 at 8:42 am,
    Excelsior says:

    (BTU) (BTUMF) BTU Commences Geophysical Surveys in Advance of Late Summer Drill Program

    by @accesswire on 26 Aug 2020

    “The current IP survey program is focused on an area of the property along the south-west to north-east geological and structural trend that mirrors some of the rock sequences on the Great Bear ‘LP’ area and where the Company announced high gold in till results on August 10. The gold in till sampling results highlighted one sample that contained 156 total gold grains, including 115 pristine gold grains proximal to an artificial intelligence target from ongoing AI investigations. Gold in till results continue to show anomalous gold grain counts across the entirety of the surveyed area. The property shares a 35-kilometre border with Great Bear Resources Ltd.’s Dixie property.”

    https://ceo.ca/@accesswire/btu-commences-geophysical-surveys-in-advance-of-late

  7. On August 26, 2020 at 8:44 am,
    cfs says:

    Artemis’s Blackwater PFS shows after-tax IRR of 35%

    2020-08-26 07:44 ET – News Release
    Mr. Nick Campbell reports

    ARTEMIS ANNOUNCES REVISED PFS FOR BLACKWATER PROJECT

    Artemis Gold Inc. has provided the results of a prefeasibility study (PFS) based on a revised development approach to the recently acquired, and 100-per-cent-owned Blackwater gold project in central British Columbia.

    Unlevered after-tax NPV5 (net present value 5 per cent) of $2.2-billion;
    After-tax IRR (internal rate of return) of 35 per cent;
    Payback on initial capital costs of two years.

    • On August 26, 2020 at 8:59 am,
      bonzo says:

      Excelsior, Laura is bearing down on east Texas but at least my dentist gave me a good report. After Cabral fell 25% yesterday I went ahead and bought some to join my TriStar in the Amazon basin of Brazil. I bought some Monarch and PREIF last week. Now I want some Aurania. Do you own that one? The chart looks like it might be ready to come down some. Thanks.

      • On August 26, 2020 at 9:04 am,
        Excelsior says:

        Hi bonzo – That is good news about the dentist, not so much about Hurricane Laura.

        I own both Monarch and Precipitate Gold, but don’t own any Aurania at this point. I’ve looked at it and consider it a solid company, but am filled to the brim with mining companies at this point. (haha!)

        • On August 26, 2020 at 9:05 am,
          Excelsior says:

          Bonzo – did you see this news out yesterday on Precipitate?

          ( PRG) (PREIF) Precipitate’s Copey Hill Zone Returns Additional High-Grade Rock Samples up to 17.0 g/t Gold at Ponton Project, Dominican Republic

          August 25, 2020

          “After recently reporting a 53.0 grams per tonne (“g/t”) gold-in-rock sample* from the Copey Hill Zone (see Company news release dated July 21, 2020), field crews returned to the vicinity to conduct additional detailed infill sampling in the surrounding area where the latest 73 rock samples returned multiple additional high-grade gold and silver results*, including individual highlight values up to 17.0 g/t gold and 37.0 g/t silver with a total of 30 rock samples ranging from 0.5 g/t gold to 17.0 g/t gold.”

          https://ceo.ca/@newsfile/precipitates-copey-hill-zone-returns-additional-high-grade

          • On August 26, 2020 at 9:23 am,
            bonzo says:

            Yes, Ex, I did see the good news about PREIF. Cabral has some holes with over 100 and 200 grams of gold per ton. Do you own Cabral or TriStar? The reason I want Aurania is that I have nothing in Ecuador yet, and I like Keith Barron.

          • On August 26, 2020 at 9:39 am,
            Excelsior says:

            I have looked at both Cabral and Tristar and both look very promising. If I was going to get into another Quinton H company it would likely be Eloro or back into Novo. For Brazil exposure I already have Jaguar, but I don’t want to increase it as Brazil is having issues with their handling of Covid-19, and their Real currency is having issues, and there are other jurisdictions I’d be more comfortable in.

            Same thing with Ecuador, it was working on getting things turned around and more mining friendly, but there has been more community pushback on mining again, I’d rather invest elsewhere. I was in both SolGold and Cornerstone capital a few times, but finally gave up after they wouldn’t stop fighting with one another and pissing off the larger majors. I’m sure Cascabel will get developed as it is too juicy of a deposit, but I’m in no rush to jump into Ecuador with so many other companies in better jurisdictions still at cheap valuations. I do believe Aurania is a solid company though and they’ve been hitting paydirt and expanding their resources successfully for some time. May your investment with them be very prosperous.

        • On August 26, 2020 at 9:07 am,
          Dick Tracy says:

          Ex, be careful you don’t rise off the brim! LOL! DT

  8. On August 26, 2020 at 8:55 am,
    Excelsior says:

    Silver Bulls: Visualizing the Price of Silver

    The Visual Capitalist – August 24, 2020 – By Nicholas LePan

    https://www.visualcapitalist.com/silver-bulls-how-silver-performs/

  9. On August 26, 2020 at 9:01 am,
    Dick Tracy says:

    I feel the correction is over for now, based on stocks I am watching. Happy Trading! DT

    • On August 26, 2020 at 9:08 am,
      Excelsior says:

      It does look like a nice green day in the mining stocks today, and like the selling pressure is easing up. Maybe folks are digesting the nonsense the FED is about discuss tomorrow about letting inflation run hotter than their initial 2% target, and that this provides them cover to print to infinity and beyond….

      In the interview posted up above with Greg Hunter and Danielle DiMartino Booth they get into the games the FED is playing and what to expect tomorrow, and it is pretty good.

      I’m expecting a PM pop into the end of the week once investors marinate on the insanity.

      • On August 26, 2020 at 9:21 am,
        David says:

        Got side tracked this AM and haven’t even read the news yet. However, Ex mentioned Silver Tiger yesterday and it popped into my head first thing this AM and I looked it up. I HAD to add some to the portfolio. Now, off to read the news while my portfolio is green.

        • On August 26, 2020 at 9:46 am,
          Excelsior says:

          Hi David – yes, I’ve added 3 tranches of Silver Tiger already and would buy more if it pulls back again, but it looks like it is off to the race again today (which is nice to see).

          I’m very interested to see their drilling program results from this year, and some are calling them Silvercrest 2.0 (who I’ve also been adding to). We’ll see, but the results, team, assets, and story really stopped me in my tracks and I realized my personal Silver ETF needed it in the mix. 🙂

          ____________________________________________________________

          (SLVR) (SLVTF) Silver Tiger – Summer Silver Conference 2020

          Red Cloud Financial Services Inc. – Aug 19, 2020 #VIDEO

          https://youtu.be/ztVRCT6UIP8

          • On August 26, 2020 at 9:48 am,
            Excelsior says:

            SF Live Ep 64 – Silver Tiger Metals Inc. (SLVR) (SLVTF)

            Soar Financial – July 21, 2020 #VIDEO Interview

            https://youtu.be/uV_TwPywG0w

        • On August 26, 2020 at 9:50 am,
          David says:

          Some big #s on silver grade…and, throw in some gold just for a little more excitement.

    • On August 26, 2020 at 9:15 am,
      Matthew says:

      DT, not only do I think you are correct, I believe our miners are now in for a better move than what had between June and August. Probably much better.

      • On August 26, 2020 at 9:32 am,
        Dick Tracy says:

        Thanks Matthew, I trust your knowledge and understanding of the markets implicitly. DT

      • On August 26, 2020 at 9:37 am,
        David says:

        Thanks Matthew…your opinion lets me sleep better at night.

      • On August 26, 2020 at 10:00 am,
        Matthew says:

        Thank you both.
        I want to point out that I am still not sure about what to expect before Labor Day in terms of excitement but this year has been so “unique” that maybe the holiday doesn’t matter at all. If so, I’d expect to see upside action that convinces smarter bears they are wrong, soon.

        If we go scarily red tomorrow for Powells speech, I consider it a strong buy. Maybe IPT can spike to .74 after all?

        • On August 26, 2020 at 10:46 am,
          Excelsior says:

          It is starting to look like we got most of the red out of the way the last few days pre-Powell speech, so I’m hoping the PM markets react like they should when they hear them yearn for hotter inflation and money printing, and that investors spike the punchbowl and seen PMs higher into the end of the week.

          As a result I’m glad I added to IPT yesterday at $.79 and today at $.77 and would prefer to see today’s action have been the low at $.76 and just skip $.74 altogether.

          IPT is currently at $.83 so fingers crossed that it is up and up and away from here…

          • On August 26, 2020 at 10:46 am,
            Excelsior says:

            seen = send

          • On August 26, 2020 at 10:47 am,
            Excelsior says:

            I’m hoping Glenfidish added this morning to his Impact position.

          • On August 26, 2020 at 11:33 am,
            Matthew says:

            IPT looks significantly better now, for sure.

          • On August 26, 2020 at 11:44 am,
            Excelsior says:

            Up about 12% to $.87. Nice!

          • On August 26, 2020 at 1:12 pm,
            Excelsior says:

            IPT close up 20% on the day at $.94. Not too shabby. 🙂

          • On August 26, 2020 at 1:15 pm,
            Excelsior says:

            This comment over at ceo.ca regarding IPT Impact Silver made a lot of sense.

            @navderek – “Profitable at $18 silver…Traded at $1.25 with $23 silver back in July…..we have $27 silver now. Need I say more?”

  10. On August 26, 2020 at 9:45 am,
    bonzo says:

    Ex, thanks for your thoughts on Brasil y Ecuador. I just looked at Aurania and it had risen from 3.20 this morning to 3.42, so I decided to by more LOMLF@ 1.41 instead. They might have a lion by the tail and also be in a safer country.

    • On August 26, 2020 at 9:52 am,
      Excelsior says:

      Yes, Fiji is more mining friendly and more stable at present, and I agree that Lion One may really have the “lion by the tail”. I’m awaiting their drill results from deep feeder zones, and now that they have all the land in that 7km caldera, they are exploring new zones too like Banana…

      _____________________________________________________

      Quinton Hennigh, technical advisor to Lion One Metals (LIO) (LOMLF)

      Jay Taylor Media – Aug 12, 2020 #AudioInterview

      “Dr. Quinton Hennigh, technical advisor to Lion One Metals, provide reasons to believe the company may be on to a very large and rich high-grade alkaline gold system in Fiji.”

      https://youtu.be/vj4RPyZt7Lk

      • On August 26, 2020 at 9:55 am,
        Excelsior says:

        Lion One to Retest High Grade Feeder With a Wedge Hole; Receives Gravimetric Assays for High Grade Zone

        August 17, 2020

        “Lion One Metals Limited (LIO) (LOMLF) is pleased to announce that it has completed diamond drill hole TUDDH500 to a depth of 863.4m and has now commenced drilling a daughter wedge hole beginning at approximately 400m depth to retest the newly discovered high-grade feeder (please refer to a company news release dated July 24, 2020). The Company has also received gravimetric fire assay results for the entirety of the high-grade feeder zone.”

        https://liononemetals.com/2020/08/lion-one-to-retest-high-grade-feeder-with-a-wedge-hole-receives-gravimetric-assays-for-high-grade-zone/

        • On August 26, 2020 at 12:32 pm,
          David says:

          The Lion is asleep today.

          • On August 26, 2020 at 12:38 pm,
            Excelsior says:

            That’s fine. Make money in other stocks while the Lion sleeps tonight. I’m sure it will wake up in the days to come once the drill results are released.

            The Tokens – The Lion Sleeps Tonight

            https://youtu.be/OQlByoPdG6c

  11. On August 26, 2020 at 9:59 am,
    Dick Tracy says:

    Ex, I wish I had nailed this corrective move more like you did, this time I decided to simply wait things out because of the difficulty of moving in and out. Usually I’m also at home being an Italian Stallion. DT

  12. On August 26, 2020 at 10:46 am,
    cfs says:

    The Italian stallion has been eating too much pasta while in lockdown…..not going to be able to run up any steps soon.

  13. On August 26, 2020 at 11:06 am,
    David says:

    Metallic having a good day also. Not sure why, but there is increased interest.

    • On August 26, 2020 at 11:21 am,
      Excelsior says:

      Today is the Reversal in Fortune day. Alexco’s little cousing Metallic is up about 30% and they have an active drill program underway. Also nice insider buyer lately.

      Make it rain MMG…. Make it rain….

      • On August 26, 2020 at 12:02 pm,
        Excelsior says:

        As things progress, lots of miners hitting double digits gains today.

        Very nice action in the PM miners today for a change.

        • On August 26, 2020 at 12:12 pm,
          David says:

          10 in double digits and 11 negative of which Bayhorse always one of the negatives. I tap on the screen and it just sits there, negative…laughing…taunting…

          • On August 26, 2020 at 12:46 pm,
            Excelsior says:

            Yeah, Bayhorse has been a laggard, but they are about to get into production (finally) or so they claim…. There have been a few false starts, but I got the sense Graeme was stalling for higher Silver prices…. and now here they are. With the ore-sorting verified, and operations starting back up again, I feel like they may finally graduate to a Silver producer.

            ________________________________________

            Bayhorse Recommences Operations At Its Relocated Flotation Circuit For Mineralization From Its Bayhorse Silver Mine

            Aug 10, 2020

            http://www.bayhorsesilver.com/bayhorse-recommences-operations-at-its-relocated-flotation-circuit-for-mineralization-from-its-bayhorse-silver-mine/

          • On August 26, 2020 at 1:05 pm,
            David says:

            $10 bucks on the Bay Horse and a Hot Dog please.

          • On August 26, 2020 at 1:16 pm,
            Excelsior says:

            +10

  14. On August 26, 2020 at 1:49 pm,
    Charles says:

    Great moves today in the silver space! So many great advances, to many to name!