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China Economic Data lowest in a decade, Oil pulls back from 7 year highs, yields rising globally, and Bitcoin higher again

Cory댊
October 18, 2021

Ed Moya, Senior Market Analyst at OANDA joins us to recap economic data out of China and key market moves to kick off the week. The markets we cover include oil, yields, and Bitcoin. All are generally moving higher however oil has pulled back from today’s highs.

 

 

 

Click here to read through Ed’s daily market note.

Discussion
24 Comments
    BDC
    Oct 18, 2021 18:21 PM

    Massive energy used for speculation is anti-productive.
    Add windmills, and Sancho Panza cannot be far behind.

      Oct 18, 2021 18:10 PM

      Great point BDC. That is precisely why I asked Ed Moya about the insane energy consumption we are seeing for folks to speculate in the Cryptos. It seems bizarre that during an energy squeeze and surging power prices, that people are just fine with the crypto miners sucking up huge amounts of energy just to produce a digital currency proof of work. It seems like there are many areas that energy would be better served for the citizens of each nation. Talk about misplaced priorities.
      .
      As Ed pointed out in his response, that will eventually get politicized, but right now few seem to care about all the energy consumption being used in crypto mining, and the only country that really took a vocal stance against it was China, and that’s been shrugged off. We live in very strange times.

    Oct 18, 2021 18:14 PM

    Apparently many market commentators agree with JP Morgan’s assessment that Bitcoin could be a good inflation hedge. Add Carl Icahn to the list of crypto enthusiasts.
    _____________________________________________________________________________________________________
    .
    Carl Icahn Sees A Market ‘Crisis’ Brewing And Notes Bitcoin’s Potential If Inflation Spirals
    .
    Carla Mozée – Mon, October 18, 2021
    .
    https://www.yahoo.com/finance/news/carl-icahn-sees-market-crisis-190839289.html

    Oct 18, 2021 18:18 PM

    New York Directs Two Cryptocurrency Lending Platforms To Cease Activity
    .
    (Reuters) Mon, October 18, 2021
    .
    In a redacted version of a letter dated Monday, James said the Office of the Attorney General “was in possession of evidence of unlawfully selling or offering for sale securities and/or commodities”.
    .
    “Regulators in the U.S. have been ratcheting up scrutiny of a world that has so far existed in a regulatory gray area, against the backdrop of rising tension between the crypto industry and regulators worldwide.”
    .
    James filed a lawsuit in February to shut down Coinseed for allegedly defrauding thousands of investors, including by charging hidden trading fees and selling “worthless” digital tokens.
    .
    “Cryptocurrency platforms must follow the law, just like everyone else, which is why we are now directing two crypto companies to shut down and forcing three more to answer questions immediately,” James said on Monday.
    .
    https://finance.yahoo.com/news/york-directs-two-cryptocurrency-lending-155941265.html

    Oct 18, 2021 18:30 PM

    Goldupdate!

    For the ones who follow glen, my iamgold has been absolutely on fire! I told doc to load up not sure if he did at the most recent lows? Also there was a poster in here who had dialogue with ex about iamgold and jurisdiction etc…folks let me tell you something, when a company like iamgold has a great board and management team, purchases good assets for future in Canada and has cash in hand to by the ker out, you listen to glen. No joke aside iamgold is on fire as are others but they are one that will lead us up as they did in 2008! Book it..

    Glen

      Oct 18, 2021 18:03 PM

      Yes, Glen; I have a very nice position in IAG at low prices.

        Oct 18, 2021 18:10 PM

        Thanks Doc for your response!

        It’s really nice to know your basket of goodies is really nice and I exception iamgold is there!

        There are a few miners that I’m thinking of dipping in just because the big boys have mentioned it and I believe DT really likes it..

        It’s name is galane gold and I will be honest I nibbled today just because many in here are super high on it! I could not resist. A nibble.. I’m done ton3.8% and holding strong

        Largest location iamgold/

        Recent psositions Klondike and galane

        I’m loaded in Klondike

          Oct 18, 2021 18:19 PM

          Hey guys, good discussion on the mid-tier gold producers (including Iamgold), having a nice bounce recently.
          .
          Two mid-tier gold producer stocks that have really moved in my portfolio lately are Karora Resources (KRR) and Calibre Mining (CXB). I got into them because they are growth-oriented producers with lots of production and exploration upside.
          .
          > Below is a 2 month candle-glance chart showing a nice bounce in most of the mid-tier gold producers. These candle-glance charts are limited to 12 but it paints the picture well enough:
          .
          Calibre, Karora, Iamgold, Victoria, Equinox, Alamos, Jaguar, Eldorado, B2Gold, Superior, Centerra, Torex
          .
          https://tinyurl.com/2f4ksd2u

    Oct 18, 2021 18:33 PM

    There is a very nice pattern im watching as of late and if this reversal comes, it may catch many off guard. The entire sector thinks gold is shites! Everyone I hear is bearish I really like this tone. We are about to embark on a re-evaluation of the gold price due to cost of energy and oil. Gold is about to fly imo. I think we have a really good setup here.

    Glen

    Oct 18, 2021 18:35 PM

    Jerry and Irish hope this message finds you both well. I have been reading all you post!

    Jerry you mentioned something the other day that I did not forget or take likely I just needed to digest it in my thoughts and in my charts. When combined with Matthews views lately I really think we have a “ great” possibility of getting to your target by year end!

    Jerry mentioned $1900 plus if I’m not mistaken and that’s about the calculation I’m coming up with. Let’s see

    Glen

      Oct 18, 2021 18:04 PM

      Gold needs to at least recover to 1800 this week. I’m betting it does with (some) producers finally showing some outperformance. If not we’re in for more hurt, the drip drip type with lots of false hope.

    Oct 18, 2021 18:38 PM

    Is gold/silver and miners lagging oil? It sure seems like it! If you pop up a chart it looks like we will follow the trend and if so wowsers!

    Glen

    Oct 18, 2021 18:38 PM

    Couple of Aussie phosphate cos up 10+% Tuesday AM

    Oct 18, 2021 18:12 PM

    Doc and Matthew and anyone else,

    Your thoughts on Scorpio gold? The one that keeps me frustrated and your opinions would be nice..

    I have a sizeable position and believe in this company.

    Glen

      Oct 18, 2021 18:52 PM

      The consolidation continues but Scorpio is fine. It will move when the market is satisfied that the low for the sector is place.
      https://stockcharts.com/h-sc/ui?s=SGN.V&p=W&yr=5&mn=6&dy=0&id=p23650731466&a=659712508

        Oct 18, 2021 18:58 PM
          Oct 19, 2021 19:16 AM

          Nice chart Matthew

          By the way kootenay looking extremely good! I don’t own any which I regret but happy for some of the folks in here who do have exposure.

          Matthew
          Doc
          Ex
          Cory I believe

            Oct 19, 2021 19:45 AM

            Wait a bit and you may get it for a few pennies a share as the market seems to think most of these pm stocks have little value, especially on a day when gold and silver are both up. JAG, BBB, GG, KTN all down, I own all of the above.

            Also down, LIO, RVG, MNO, SKE, DV, GPR, NVO, AYA, NEE, EXN, I own none of these.

            It all has to do with picking a bottom which is a fools game and I have been a fool.

            Oct 19, 2021 19:15 PM

            I don’t care about nailing lows, just weakness. So my KTN position is now about 9 times the size that it was several months ago. I also don’t worry about price surprises to the downside in such thinly traded debt-free specs as long as the metals are fine. When big money sits on its hands, dumb money does funny things, on the downside as well as the upside.
            KTN is still up 39% since bottoming 3 weeks ago despite today’s pullback. I bought more today even though it is well above my recent purchase prices.
            The sector is in a bubble in bearish sentiment.
            https://stockcharts.com/h-sc/ui?s=KTN.V&p=W&yr=6&mn=0&dy=0&id=p45657309940&a=708378089

            Oct 19, 2021 19:39 PM

            Almost everything I have bought this year has dropped dramatically after I bought into it and now I am stuck in crap. Impact and Kootenay are my only positives lately. I look forward to a day when I am totally out of resource stocks as they seem to be going the way of the Marlboro Man.

    BDC
    Oct 19, 2021 19:19 AM

    New DOLLAR WEEK : https://saturationtiming.blogspot.com/2021/10/dollar-week_19.html
    (NY Time : 20211019.0920)

    Oct 19, 2021 19:27 AM

    Remember that in January, that gold (should finally) become a Tier 1 asset for all hold-out banks. I doubt this will be a light switch “turn on” driver, but it will likely create fundamental demand that hasn’t been there for over 10 years now.

    This would be a good time to buy junior miners and explorers, IMHO. Silver front-month futures also touch 24.18, stopping in a bit of a wide resistance range. Next stop should be about 24.80? It won’t do it in one shot, it never does, but the trend is up.

    Oct 19, 2021 19:20 AM

    Our handlers seem to be displeased with some of today’s miner performance. Afternoon pressure in the works. Never-the-less we move forward with disdain for the past and hope for the future…those goons.