Counter trend moves today in gold and the USD, but how long will it last?
Craig Hemke, Founder of TF metals Report joins us to share his thoughts on the pullback in gold and bounce in the USD. On the back of good economic data we are seeing some counter trend moves that were foretasted by the extended nature of the charts. Craig also points to the Biden budget and it’s forecasts of real interest rates.
Click here to visit Craig’s site – TF Metals Report.
I knew gold was going to take a hit when this clown started babbling about it going to 2300 very soon. Why anyone would listen to a guy who used to call himself Turd is beyond me.
As mentioned yesterday, the action in the “meme stocks” has been bordering on ridiculous the last few weeks, with GameStop, AMC Entertainment, and Blackberry rocketing back higher again with all the retail hordes from WallStreetBets, Reddit, Robinhood, WeBull, etc… squeezing the shorts once again.
This AMC Army creed is about as silly (and scary for retail investors in parabolic move) as it gets:
https://cdn-ceo-ca.s3.amazonaws.com/1gbini7-18C8C03C-026E-45EF-940E-CF2BA14534E2.jpeg
Preservation Of Wealth Vs You Only Live Once – Another Victory For Retail Traders As AMC Price Blasts Off
@TheTechnicalTraders – Chris Vermeulen (06/02/2021)
“In a market flush with cash where traders are able to use social media to target heavily shorted symbols – incredible things can, and often do happen. AMC follows GME to the heavens as retail traders flex their muscles while pushing institutional-level players to the sidelines. It is a true David vs. Goliath story where the impossible is possible.”
https://www.thetechnicaltraders.com/memberships/aff/go/organicchef?i=238
Keep in mind that AMC Entertainment (AMC) was down to 1.91 earlier this year, and had all kinds of press coverage along with GameStop when the retail mobs squeezed the shorts sending it rocketing up to $20.36 in January.
For those that haven’t been following along, (AMC) got up as high as $72.62 in yesterday’s trading session. It closed down today at $51.34. What a rollercoaster ride through the retail froth.
> Here’s the AMC chart for review of the lunacy:
While on the track of discussing “meme stocks” here is the chart for (GME) GameStop.
Keep in mind it traded down to $12.14 in December of 2020, then rocketed up to $483 in January during the WSB/Reddit/Robinhood #ShortSqueeze.
It was back up at $294 yesterday and closed at $258.18 today. I had a friend reach out to me yesterday claiming it wasn’t just going to $1000, but was going up to $10,000 – $12,000. These Reddit “Apes” are a few bananas short of a bundle. Haha! 🙂
To a lessor extent, Blackberry is back in play as a WSB/Reddit/Robinhood #ShortSqueez as well:
The chart is not as crazy, but still a wild move the last few weeks…
The “apes” are getting restless… LOL!
In case anyone was wondering, the nearly failed rental car company, Hertz is back in play again as well, and has a new lease on life as a result of the #ShortSqueeze
Apparently Tanger Factory Outlet Centers, Inc. (SKT) is another stock that the Reddit/WSB/Robinhood retail mobs have in their sites. There is a 30% short position in the company which is quite high, and it has moved up below $6 to above $18 in the last few weeks.
These #ShortSqueeze “meme stocks” are the height of speculation run wild and yet these retail hordes are also exploiting the situation of companies that have abnormally high short positions that can be forced higher through excessive buying. This is going to start forcing institutional investors and hedge funds to think twice about overly shorting stocks from now on, and may represent a tipping point in financial markets where the little guys strike back.
Gogo Inc. (GOGO) is another “meme stock” #ShortSqueeze target by the Reddit/WSB/Robinhood retail hordes with a little over a 20% short position. The stock has moved up 10 times from a low of $1.40 last May to now $14.38.
This kind of activity has got to be late cycle, end of cycle activity, that we see when the bubbles swell to levels nobody thought was possible, and we are seeing it almost everywhere in the last year… We see runaway prices to the upside in Collectibles, in virtual art NFTs, in the SPAC phenomenon, in Tesla, in Cryptos, in Commodities (Lumber, Copper, Oil, Lithium, Nickel, PGMs, Soft ‘Food” Commodities), Vaccine stocks & Biotech, Semiconductors, Small Cap stocks, growth stocks, real estate prices, etc…
The music will eventually stop, and investors will start scrambling and looking for a chair of safety from carnage, and while things may get dicey for a while, the precious metals are one part of a larger diversified portfolio that should provide some protection or at least pull back less than other overbought sectors at nosebleed levels.
The Robinhood stuff is obviously disrupting Wall Street’s monopoly on the Markets. If it is true that Robinhood type players are targeting stocks that have an “abnormal” short position, then maybe the question should be as to “what is an abnormal short position” ?
If Regulators were able to determine that a stock is “unfairly shorted”, then they should ask how could that happen under current regulations.
If they find that the “uptick” rule should not have been removed, or they are not enforcing “naked shorting”, or if they find that excessive shorting is damaging the “fair value of a stock”, or any of the other “unintended consequences” of excessive shorting, or illegal shorting, etc. then maybe they should direct their attention as Regulators that represent the “people and fair markets”, to change the rules for “Fairness”.
If they want to continue to protect the interest of the Elites or Large Corporations, or Corporations that back a particular political point of view, or ignore fairness…then attempt to
Regulate Retail Investors who are attacking “weaknesses in the unfair market” so those benefitting from criminality…continue to prosper and Regulators can cycle between Regulatory Agencies and Wall Street jobs. All the res is smoke and mirrors.
Labrador Gold drills 3.6 m of 20.6 g/t Au at Kingsway
2021-06-03 08:05 ET – News Release
Mr. Roger Moss reports
LABRADOR GOLD INTERCEPTS 20.6 G/T OVER 3.6 METRES AND 10.48 G/T OVER 2.4 METRES AT BIG VEIN VISIBLE GOLD INTERSECTED IN FOUR DRILL HOLES
Labrador Gold Corp. has released the first intercepts of near-surface high-grade gold mineralization from its Kingsway project near Gander, Nfld. The Kingsway project is located in the highly prospective central Newfoundland gold belt.
Benton Resources is also in Labrador:
Benton investor Sprott acquires 10 million shares
2021-06-03 16:55 ET – News Release
Mr. Eric Sprott, investor, reports
ERIC SPROTT ANNOUNCES HOLDINGS IN BENTON RESOURCES INC.
Goldspot Discoveries reviews Nfld. royalties
2021-06-03 13:10 ET – News Release
Mr. Denis Laviolette reports
GOLDSPOT DISCOVERIES PROVIDES UPDATE ON NEW FOUND GOLD INVESTMENT AND ROYALTIES
Goldspot Discoveries Corp. has provided an update on its growing royalty and portfolio investments in Newfoundland.
Highlights:
GoldSpot is the largest royalty holder in Newfoundland with coverage of 2,489.52 km2. This includes an average 0.5% royalty covering New Found Gold’s (TSXV: NFG) Queensway Project and a 0.5% royalty covering Exploits Discovery’s (CSE: NFLD) extensive ground package, (see Figure 1). Significantly, GoldSpot holds a 0.2% royalty at the Keats and Lotto Zones, where New Found Gold is currently drilling and reporting high-grade gold intercepts, including most recently hole NFGC-20-59 at Keats which included 124.4 g/t Au over 17.7m and 131.1 g/t Au over 4.65m.GoldSpot holds 1,689,700 shares of New Found Gold, representing 1.2% of the New Found’s issued shares, with a market value of $20.2 million as of June 2, 2021.
SILVER fell to its rising lower daily Bollinger band this morning before catching a bid…
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=D&yr=0&mn=5&dy=0&id=p33328923784&a=965232388
Repetitive dumps of counterfeit paper contracts already. They must be going to buy something real at a cheap price.
Gold found some buying at its 20 day MA.
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=0&mn=7&dy=0&id=p72932436656&a=965238476
SLV has KAMA and fork support about 36 cents below today’s low (almost 3% below today’s close).
https://stockcharts.com/h-sc/ui?s=SLV&p=W&yr=2&mn=8&dy=0&id=p36638136359&a=887258683
Great Bear drills 2.3 m of 50.5 g/t Au at Dixie
2021-06-03 10:59 ET – News Release
Mr. Chris Taylor reports
GREAT BEAR PROVIDES TWO NEW DETAILED HIGH-GRADE LONG SECTIONS AND REACHES 318 DRILL HOLES REPORTED ON TWO YEAR ANNIVERSARY OF LP FAULT DISCOVERY
Great Bear Resources Ltd. has released results from its continuing fully financed $45-million 2021 exploration program at its 100-per-cent-owned flagship Dixie project in the Red Lake district of Ontario.
Chris Taylor (of Great Bear & Kodiak Copper): Promotion vs Delivery
Soar Financial – June 1, 2021
Deutsche Goldmesse 2021: Keynote
At 10 days, the current peak to trough pullback is already longer than the previous two: 9 days in March and 7 days in April. If this one takes significantly longer and goes significantly deeper, it would probably be due to the fact that a five wave advance is now complete. By the way, that five wave move off the March low is another great sign that the March low was THE low. Had it been merely a corrective/countertrend move within the bigger downtrend, it probably would have been a three wave, A-B-C advance.
To be clear, GDX would have to fall a long ways to turn the weekly chart bearish.
https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=0&mn=11&dy=0&id=p31512167557&a=938889965
So apparently another scandal is rocking the resource sector again with inflated bonuses to company executives, milking it with lifestyle companies. The resources boards have been lit up the last 2 days on the news from Crest Resources.
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06 / 03 / 21
Directors of Crest Resources (CRES.cse) Set The Benchmark For 2021
In the words of DB, “Looks like a C$19m resources investment company gave “certain directors, officers, employees and consultants” C$9m worth of company shares AND company assets as bonuses” and he’s right, here’s a little graphic he did to prove it:”
“Apparently, the wholesome individuals behind this company think that because the share price has done this recently…. (gone up parabolically) ….they can award themselves nearly 50% of the market value of the company. DB wonders whether it’s legal, but that’s never been a particularly serious impediment to mining executives.”
__________________________________________
Vancouver, B.C. – TheNewswire – June 2, 2021 – Crest Resources Inc. (CNSX:CRES.CN)announces that it has issued to certain directors, officers, employees and consultants (the “Recipients”) an aggregate of 14,538,689 common shares in the capital stock of the Company as bonuses in relation to the increase in value and significant performance of the Company’s investments. The common shares issued are subject to a four month hold period expiring October 2, 2021.
The Company has also transferred an aggregate of 2,473,024 common shares in the capital stock of Exploits Discovery Corp., 2,000,000 common shares in the capital stock of Opawica Explorations Inc. and 2,000,000 common shares of Origen Resources Inc., all held by the Company, to the Recipients as bonuses. This is instead of the previous RSU plan that was approved by the shareholders at its Annual General Meeting held on December 3, 2020, and is in relation to the increase in value of the Company’s investments over the last fiscal year.”
https://iknnews.com/directors-of-crest-resources-cres-cse-sets-the-benchmark-for-2021/
Crest Announces Distribution of Bonus Shares, Instead of RSU Plan
by @thenewswire on 2 Jun 2021
https://ceo.ca/@thenewswire/crest-announces-distribution-of-bonus-shares-instead
Here are some investor reactions in the Crest Resources room:
@maverick9999 – “They PERSONALLY gave themselves the shares of the company’s that CREST was invested in. how does that help shareholder value? it ONLY hurts shareholder value lmao”
“this thing is basically worthless. if they’re willing to raid the assets and just hand them out to themselves then nothing they ‘own’ can be evaluated from a shareholders perspective.”
@Gbnotsew – “white collar fingers in the till”
@Baz – “On CRES website “Michael understands intricacies of building corporate structure, marketing and value accretion.”
I would correct that for “Michael understands intricacies of building corporate structure, marketing and how to rip off business value accretion for personal gains.”
@TheGalvanizer (Doug Ramshaw and President of Minera Alamos): “Worth noting the 16 million shares Emma Fairhurst owned prior came from a closing of a deal in Dec – key stock acquired by way of that deal was a stake in Inflection Resources that has dropped 20% since. So now value destruction is rewarded by the distribution of another 5 million shares….”
@Gold64k – “$CRES has been in a very similar situation to NVO in that their share holdings (Newfoundland companies) have, inarguably, been helping to support $CRES share price, and, now overnight a huge chunk of those shares are gone. $CRES is a blot on the entire sector and a deterrent to new investors entering the world of mining investments.”
@Highflight65 – “@gold64k I understand the frustration and the blot it gives the entire sector. That’s why management teams are so critically important, often more so than any other aspect of a junior mining company. There are good ones out there. @theGalvanizer is the epitome of integrity and honesty in this sector. Probably an embarrassment to some of Crest management that someone of his caliber is already aware of their actions. If ES has any pull, I think some kind of action will be noted quickly.”
@moreag4me – “Management issued assets as apposed to options is more accurate.”
@maverick9999 – “i’m very confused how what they did here does not constitute outright theft. how can you take company assets and distribute them to yourselves as a ‘bonus’?”
“they issued themselves almost 50% of yesterdays market cap in bonuses LOL”
@Chipper – “Michael Collins for DOUCHBAG of the year award!”
@Baz – “In the end it’s just another lesson on what the stock racket is Madoff.
@CHIPPER haha yeah, I’ll just avoid anything with his name attached instead.”
@Baz – “CEO liquidated company’s best assets to grease some palms to the detriment of actual shareholders. Management is doing all the job themselves, no need to short. btw I don’t short any stocks.”
“From now on it’s just that you can expect management to liquidate any assets gaining value for their own personal gain in the future, they don’t see anything wrong with it.”
@Goldberg – “So to get back on topic in the past few days it seems the CEO of a public Company, John Michael Collins granted himself and his conspirers the valuable shares of these public companies as a bonus. The sole reason many invested in these companies were for the assets he just transferred off the company books to their own accounts. Michael Collins awards himself 5,023,175 Crest shares for compensation at $.10, Buys 1 million shares of Origen at $.16 in a private transaction, Crest sells 2 million shares of Origen. Crest sells 2,473,024 of Exploits. Then Emma Fairhurst for Aeternum Asset Advisors Inc. (Control or Direction) purchases the same number of shares that Michael Collins gave himself 5,023,175 for $.10 in a private transaction. Anything anyone thinks is missing here? Micheal Collins around June 01 purchases a million shares of Opawica at $.20 in a private transaction.”
@Oops – “In a nutshell, they gave up $9m+ in shares and marketable securities. They had a valuation of $19.5m yesterday. But they still own $20m in other securities + others. It was the lowball Dec prices used as deemed value that really has me upset. Everything else falls within accordance of the RSU plan, which makes you rethink that for other company agm votes down the road. “
This whole Crest Resources debacle is what gives the mining sector a bad name with generalist investors, and this is another black eye for the promoters and officers of junior mining stocks. Such a shame for the whole sector.
This also highlights how important it is for investors to look more carefully at how performance bonus shares are being allocated to management and directors, and vote down excessive compensation and bonus plans before they get on the books in the first place.
I feel sorry for Crest Resources (CRES.CN) shareholders, because not only were the company assets plundered, but the stock sold off by over 36% today as investors ran for the exit doors. What a mess…
Now that Crest Resource is caught in the crosshairs of an irate shareholder base and controversy, they rushed out with a clarification of the bonus plan and what they are and aren’t allowed to do. The issue comes down to how much leeway they have to milk these bonuses, that investors voted these policies in to begin with, the low December pricing benchmarks used, and the question remains as to what exactly did management do operationally to deserve such hefty bonuses?
Crest Clarifies Issue and Escrow of Performance Bonus Shares
@thenewswire on 3 Jun 2021
“Crest’s RSU program is designed to compensate management and key personnel based on performance rather than salaries. The program envisioned distributing a combination of cash, newly issued Crest shares, or other free trading shares of the companies held in Crest’s portfolio of investments.”
https://ceo.ca/@thenewswire/crest-clarifies-issue-and-escrow-of-performance-bonus
The takeaway should be that investors look more closely as to what games management of these junior mining stocks play to give themselves healthy lifestyles by doing more mining of shareholders through dilution and company value, then they do of actual mining out of the ground…. and then not vote in silly policies in the first place.
This all comes at a time where we just saw this news 2 weeks ago, about a prior mining stock promoter dirtball weaseling his way through the system.
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‘Kid Rock’ stock promoter escapes jail term for tax evasion estimated at more than $4M
Damien Reynolds was named in the 2016 Panama Papers but tax authorities investigated him for fraud
Jason Proctor · CBC News · Posted: May 13, 2020
“A once-high-flying B.C. stock promoter has avoided jail for tax evasion after attempting to defraud the Canadian government of an amount prosecutors estimated at more than $4 million.”
“A B.C. Supreme Court judge sentenced Damien Reynolds Tuesday to a conditional sentence of two years less one day to be served in the community.”
“The 52-year-old must keep the peace and be of good behaviour, perform 200 hours of community service and keep a nightly curfew — but Justice Gordon Weatherill said he didn’t see the need to incarcerate the mining executive whose Midas touch once earned him the moniker ‘Kid Rock’ from Canadian Business Magazine.”
https://www.cbc.ca/news/canada/british-columbia/damien-reynolds-panama-papers-tax-evasion-1.5567005
RMI unveils set of rules to help miners fulfill ESG expectations
Cecilia Jamasmie | June 3, 2021
https://www.mining.com/rmi-unveils-set-of-rules-to-help-miners-fulfill-esg-expectations/
Mining Stocks In Broad Sell-off As Copper, Gold Prices Pull Back
Mining.com Staff Writer | June 3, 2021
“US gold futures fell by more than $40 an ounce, or 2% from Wednesday’s settlement, hitting a low of $1,866.70 on the Comex market in New York while copper was trading down more than 3% in early afternoon trade, gapping to $4.429 a pound ($9,765 per tonne). Selling was heavy for both metals with contracts equivalent to 26 million troy ounces and over 3 billion pounds changing hands.”
https://www.mining.com/mining-stocks-in-broad-sell-off-as-copper-gold-prices-pull-back/
Gold: Ready For Take-Off, Or Is It Another Big Flake Off?
Jun. 03, 2021 – Equity Management Academy – Seeking Alpha
“Monetary policies also appear to be bullish for precious metals. Gold is a flexible instrument and has been a currency for thousands of years. Fiat paper currencies, such as the US dollar, have been losing value since the US went off the gold standard in 1971. The entire economy is now based on fiat money and debt. The economy is sustained by debt provided by central banks. What we saw last March was the Feds opening up floodgates of easy money. Now more and more cash is chasing a finite number of real assets, such as real estate, fine art, precious metals and commodities.”
Gold Update The correction Has Begun
June 3, 2021 – G.S. – Smart Money Tracker #TechnicalAnalysis #Chart
Gold price tumbles $40, will it collapse back to $1,700? Watch these warning signs – Jim Wyckoff
Kitco News – June 3, 2021
“Gold fell 2% on Thursday, but this is just reflective of routine profit taking,” said Jim Wyckoff, senior analyst of Kitco News.
“Importantly, the U.S. dollar has moved up on Thursday’s session, likely as a consequence of having fallen for too long,” Wyckoff said.
“Importantly, the price uptrend in gold on the daily chart remains in place. The bulls are still in firm technical control,” Wyckoff told David Lin, anchor for Kitco News.
Wyckoff obviously correct, the bulls are still in firm technical control.
Agreed. Jim Wycoff’s analysis is correct that the bulls are still in firm technical control.
I posted the Gary S. video just to present the other side of the equation, where he believes Gold will be moving down to a daily cycle low and break the uptrend line of higher lows, before resuming the uptrend again.
It wouldn’t surprise me to see Gold correct and bit and digest, and I believe you had made that point recently as well, but overall the larger trend is still bullish.
Ask them if they wouldnt mind making my miner share price go up a bit would ya?
Jobs Miss……Dollar Down…….
Wonder if we will hear from CHris Temple anymore……….?
Did Chris move to Ecuador?
? good question….
Chris didn’t like the political posts here.
Do not blame it on the POLITICAL SECTION….
Instead of doing interviews here on the KER, Chris has teamed up with Mining Stock Education, where he has been posting videos there instead.
For example, here is a video he did in March where he said it wasn’t the time to load up on mining stocks, and he was bullish on the US Dollar. Clearly that was not correct, as the Dollar topped out around 93.75 in March, and shortly after this video in March Gold double-bottomed, and it was actually the perfect time to be loading up on mining stocks, as they just rallied for all of April and May.
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Not Yet Time to Load Up on Gold Stocks says Analyst Chris Temple
Mar 17, 2021 – Mining Stock Education
“In this interview analyst Chris Temple shares that the gold price could still see a significant drop and therefore it is not time yet to load up on gold stocks. He discusses the two possible scenarios that will cause a gold bottom and talks about why he is bullish on the U.S. dollar right now.”
Others asked a few times why Chris quit posting here, and the answer came back he didn’t like all the political talk here. Just relaying the answer that was given. Don’t shoot the messenger.
Thanks for the post above……… I will not shoot you…..who would be left to pull me out of the fire…. lol … 🙂
Haha! Agreed OOTB. Thanks buddy.
Personally I liked hearing from Mr. T just like everyone else, even if I didn’t always agree with his analysis. I still believe the more voices and opinions we can get, the better informed we all are as investors and people.
Btw……. great comment……. “he was bullish on the US Dollar. Clearly that was not correct”
I think he was not correct on a few things…
But , I think in his last messaging,he has some good thoughts on INFLATION…(as in the video posted below)
Things are ever moving….. and changing, sometimes hard to keep up…but, that is why
the Ker is a good place for a sounding board… JMO
Good points OOTB, and I liked getting Chris’s perspectives in the past on the Inflation, Deflation debate, where he often came down on the side of Staglfation (similar to what we saw in the 1970s). I haven’t listed to his recent interview yet, but will check it out, and like getting his macro economics take on things to mull over.
I liked Chris Temple also and appreciated his wisdom. I hope he returns also.
I’ll ask Cory about it and see if we can get Mr T back on the show down the road, but don’t know all the details around him taking a break.
Money is Politics. Politics is Money.
BDC……….Yes,…..agree 100%
“In this discussion, Chris discusses his views on where we are at in the economy/markets; and particularly with a view to “straightening out” the currently misguided “Flation Debate” as he calls it. A LOT of (forgotten) history and food for thought here!”
I was just going over on of the articles he posted in Dec 2019….here on the KER….
Chris…..mentioned in one of his articles…… the Inflation will not be like the !970’s
on … one…
Posting that video might get me the boot from Cory – but then, I’m just visiting 🙂
Do not worry…….. It was a great tape…….
Visit more. Fear not.
🙂
I’ve missed out on some nice gains cuz I didn’t like the political risks in South America and I must ask those who have been playing them…are you concerned with the polls showing a leftist leading in Peru???
I am much more worried about the communist takeover of Washington DC than I am about Peru. Raul Castro turned 90 yesterday.
For what its worth Wolf, if anything, I have not read anything about Peru taking anything from miners.
A google search found this tho.
Peru’s presidential front-runner has proposed nationalizing mining and redrafting the Andean country’s Constitution, raising risks to mining investment in the world’s no. 2 copper producer that could put upward pressure on prices of the red metal.
For what it is worth; I recently bought Westhaven as they had some good drill results. I sold it yesterday to buy Labrador as they also had drill results. I don’t think Labrador’s were quite as good, but with all the interest in the Labrador area, I thought it may have more momentum because of the New Found Gold hype. Labrador up about 15% off and on today. Just a thought to throw around the infield.
Thanks for sharing your strategy David. It likely makes sense that the Labrador gold position would garner the most interest in the red hot Newfoundland area play going on. I don’t own Labrador Gold, but we had a segment with them today, and I do own Westhaven, but probably should do a segment with them soon.
If things work, maybe will end up with more Westhaven. In any event, when things go up, it is fun to have the chance to move things around offensively instead of defensively.
Ackerman
https://www.youtube.com/watch?v=oJC7276OUyY