Rare Earths, Lithium, Energy Stocks, and Cannabis – We cover it all when it comes to the underlying stocks
Sean Brodrick, Natural Resource Analyst at Weiss Ratings joins us to share his insights in a wide range of markets. We start with the rare earth elements, then the lithium sector, energy stocks, and wrap it up with cannabis stocks.
Click here to follow along with some of Sean’s recent writings.
The same goes for GDX:
https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=1&mn=1&dy=0&id=p09428073172&a=995415906
Yes, I’ve noticed the miners were a bit peppy heading into the Fed talks this afternoon, and would like to see that stick. Normally heading into these meetings the miners are under some pressure, so nice to see a little green on the screen heading into today’s announcement.
The mining ETFs gave back most (SIL/SILJ) or all (GDX/GDXJ) of their morning gains as the statement was released but are now at new highs for the day.
The continued doubt and pessimism is great and so was Spanky’s brief return to mark the low like he did two years ago.
The situation looks superb to me but who knows how much more chopping around the short term might require.
https://stockcharts.com/h-sc/ui?s=SILJ&p=W&yr=5&mn=0&dy=0&id=p56062583894&a=960151206
Yes agreed. Good chart as well, where SILJ did hold the pivot point, and that often the oversold conditions don’t quite get to their normal “oversold” metrics if the larger bull trend is still in place (like the RSI only potentially making it down to 40 and not to below 30)
The Silver miners have had a enough carnage lately, and bounce is due, so if today’s action was the start of that, it will be a nice change from the recent selling pressure. We’ll see how things develop heading into next month, but it would be nice to see a more bullish August.
As mentioned yesterday I don’t have much dry powder left anyway, after redeploying the funds from any of the stocks I sold for tax loss purposes the last few weeks right back in to other existing positions and also to a few new positions. Since I’ve already spread the funds around over the prior 2 weeks in particular, seeing a change in trend and sentiment here would be great actually.
Ex, you are right, money started to flow into the miners today, I feel we will see a turn around soon!
DT – Yes, it was nice to see the money flows into the miners today for sure. We’ll need to see some more follow through buying in the days to come, but the sector has been due for a bounce, so maybe today was a first sniff at that.
In addition to the green day in the miners, both gold and silver are up nicely in afterhours trading.
Gold up to $1816
Silver up to $25.22
It may be enough that the Fed mentioned it isn’t going to be hiking rates any time soon…
Gold futures now up to $1822 in overseas trading
Silver futures now up to $25.52 in overseas trading
This may put a little life back in the PM stocks for Thursday morning, with some nice follow through buying sustaining the bounce that started on Wednesday’s trading session.
3 Reasons to Put Mining Metals on Your Radar
by Sean Brodrick – July 15, 2021
https://wealth-wave.com/wealth-wave/3-reasons-put-mining-metals-radar/
NIMBY Accelerates the Coming Lithium Supply/Demand Squeeze
by Sean Brodrick | July 24, 2021
https://wealth-wave.com/wealth-wave/nimby-accelerates-coming-lithium-supplydemand-squeeze/
The New Precious Metals! (Rare Earths)
by Sean Brodrick | July 20, 2021
Welcome to ‘Cannabis Country’!
by Sean Brodrick – July 27, 2021
https://wealth-wave.com/wealth-wave/welcome-cannabis-country/
This Incredible Metal Is Poised to Break Out
by Sean Brodrick | July 29, 2021
https://wealth-wave.com/wealth-wave/this-incredible-metal-is-poised-to-break-out/
Thomas – If you see this message, hopefully you noticed that we had yet another pundit on here with Sean Brodrick today, (in addition to Matt Geiger over the weekend show), that covered the Battery Metals and Energy Metals space.
Sean really covered a lot of ground today in covering the strategic importance of sectors like Rare Earths, Lithium, Energy Storage & the Battery markes, Oil & Gas, and even the Pot Stocks.
It is nice to get guests on like Matt Geiger and Sean Brodrick that cover multiple resource sectors.
Ex – many thanks for this one 👏
Sorry for my late response – was busy on Wednesday, because got my brand new EV 😀
The week is far from over but FXI is showing a huge weekly bull hammer at the moment:
https://stockcharts.com/h-sc/ui?s=FXI&p=W&yr=3&mn=11&dy=0&id=p54555615758&a=998299633
Just wondering why you’re interested in FXI?
FXI is nearly 17 years old yet has never been cheaper or technically a better buy relative to the US stock market than it is now. That by itself is good reason for an interest in it but there’s more.
FXI is quarterly oversold versus SPY and massively quarterly oversold versus QQQ. When it was quarterly overbought versus the US stock market in early 2009, US stocks had just bottomed versus the dollar (and, obviously, versus FXI). And what a bottom that was. US stocks have gone up ever since while FXI has done very little. Now FXI vs US stocks is almost certainly marking a top in US stocks, at least on a relative basis. It makes sense, too. FXI is an ETF that holds China’s large caps so comparing it to the US stock market is an apples-to-apples comparison. Big/smart money is sure to favor one over the other when it makes sense to and now it makes sense on a huge scale. So, even if you are only interested in US stocks, the current FXI to SPY ratio suggests that you should at least be cautious and probably even start looking elsewhere for returns and safety. By extension, there are also bullish implications for gold, our miners and commodities in general. The best bull markets in our gold/silver and their miners happen when the US stock and bond markets as well as the economy run into trouble and we have all three already even if it is not yet apparent to most people.
great analysis…the weekly hammer reaction low looks to be in…now the tradable low should form in about 4 or so weeks….normally just let a few more slight lower lows form on lighter vol…with rsi divergence and then give it a whirl…IMHO…only five legs down so far the way i count…let price fill in the arc shaped price void…it will look better….but i could miss a great trade…..imho…unbelievable body of work you produce matthew
Thank you Larry.
Thank you Matthew.
(ELO) (ELRRF) Eloro Intersects 129.65 g Ag eq/t over 300.75m in the Mineralized Envelope of the Santa Barbara Breccia Pipe at the Iska Iska Silver-Tin Polymetallic Project, Potosi Department, Bolivia
by @nasdaq on 28 Jul 2021
https://ceo.ca/@nasdaq/eloro-intersects-12965-g-ag-eqt-over-30075m-in-the
ELO up about 14% on this news today of the wide intercept of mineralization.
I wanted to buy into ELO today, but the now it won’t be until the news is digested and if I don’t get it, that is life!
Goldfinger and Trevor Hall discuss Eloro’s drill results, and the polymetallic nature of the massive depots ELO is onto, about 2/3 of the way through this podcast for a few minutes. Some good thoughts on how much higher the project could be valued if there was a better understanding of the metallurgical properties, recoveries, and what kind (and how many) concentrates would be needed in a production scenario. The met work is still ongoing…
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Rob Sinn (aka Goldfinger) on Gold and the Use of Silver Equivalents in Junior Mining
2021-07-28 – Mining Stock Daily w/ Trevor Hall
“CeoTechnician, Rob Sinn, joins us for a discussion on gold’s continued base of $1800/oz lately and how he’s playing the next move in either direction. We also discuss the use of silver equivalents in exploration drill results and if it is being over-used by companies with combination of previous and base metal factors.”
No comment, but feel free to add your’s.
https://i.redd.it/6v9rt3pbfyd71.jpg
IrishT – That is a freaky Pumping Powell picture. Now I can’t unsee it. Haha!
As suspected, no major news or changes from the FED… keeping the status quo.
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S&P 500 ends off day’s lows; Powell Says Fed Still A Ways Away From Rate Hikes
Reuters – Jul 28, 2021
In a news conference following the release of a new policy statement from the Fed, Powell also said the U.S. job market still had “some ground to cover” before it would be time to pull back from the economic support the U.S. central bank put in place in the spring of 2020 to battle the coronavirus pandemic’s economic shocks.
“It looks like probably the most positive thing for the market was that they are nowhere near increasing interest rates,” said Alan Lancz, president, Alan B. Lancz & Associates Inc, an investment advisory firm based in Toledo, Ohio.
The Saga Continues: Venezuela’s 31 Tonnes Of Seized Gold at the Bank of England
Date 28 Jul 2021
“In what’s becoming one of the longest running legal dramas in the global gold market, the saga of Venezuela’s ‘frozen’ gold in London continues to roll on, most recently reaching the UK Supreme Court in a 4 day court hearing between 19 – 22 July.”
“At the core of the legal drama is the question of who has the authority to withdraw Venezuela’s gold reserves which are stored in custody at the Bank of England. Is it the Banco Central de Venezuela (BCV) under the direction of de facto president of Venezuela, Nicolás Maduro, or is it a team directed by self-styled interim president of Venezuela Juan Guaidó, who is backed by the US and UK governments.”
“Given the multiple developments in this saga over the last few years and the complexity of the matter, a recap is in order…”
AEM chart but a lot of mining charts are looking similar. I hope we don’t chop around like 2016 highs.
CaliJoe – That is some interesting AEM chart symmetry from back in 2016 versus recently, and agreed, that chopping sideways for a year or two (like the market did in 2017 and 2018) would really be exhausting, and would further tank the sentiment in the sector.
Like the old saying goes, “Bearish corrections will either scare you out, or wear you out.”
When looking back at how long the miners have corrected since a year ago at their August highs, this has definitely been a “wear you out” type of corrective period, within the larger bull market.
There has been some real chart damage done over the last year, that was more bearish and lasted for longer than most expected, so if we had a 1-2 year sideways choppy market, it would be fine for swing trading, but it would sap the energy out of the longer term buy and hold investors.
Usually late August and September are stronger months for the PMs, and a relief rally is due, so maybe the PMs will climb a bit higher and start chopping from a higher level.
I’m mostly talking about the PM miners there, and in particular the junior miners not held in GDX or GDXJ, that have overall had far worse corrections since last August, than the larger companies in the widely followed ETFs have had.
The difference is in 2016 we were “in the middle of the cup” now we finished it making a higher high. The same happend in 80, 86 and 06. Everyone can see on the charts what followed
Purchased KL today. If we get a strong bounce then looking for gap fill before labor day weekend. Perhaps that’s too optimistic lol
CaliJoe – It’s a good time to buy quality names like that who will get a bid when the worm turns in the sector. I’ve also been adding to more of my larger producers and some of the larger developers lately, figuring they’d get some of the first capital inflows in a bounce. Ever Upward!
Thank you for that Matthew. I trade Chinese stocks mostly in HK and look at FXI from time to time. Right now I hold an ETF focused mostly on Chinese tech companies
We don’t need no bottom here. BIG $$ is unmistakably scooping up ridiculously cheap miners.
Santa Cruz doing well this morning, good production news overall.
+1 Agreed Dan.
SCZ has a lot of torque as the smallest market cap of the Silver producers.
It’s current P/E is 19.5, outstanding in my view…
A quick anecdote about the pandemic; Alberta has removed most restrictions for mask wearing and social distancing, yet prolly 75% of the people going to stores still wear their masks. The sheeple expounded on the need to follow the science yet when the science says it is okay to drop the restrictions all of the sudden the science is wrong and people should still wear their masks, absolutely ridiculous that people want to wear a useless diaper on their face to demonstrate how blind to overreaching control they are.
Right on, Dan. We’re living in a poorly written dystopian thriller.
Silver is now almost $1.30 off its recent low (it bottomed at 24.493 according to the charts here on KER and 24.51 according to stockcharts).
Last Friday:
On July 23, 2021 at 12:24 pm,
Matthew says:
I bet it won’t go more than a few cents below 24.50 if it does drop on Monday.
Perfect action yet the bearish guys never recognize it:
https://stockcharts.com/h-sc/ui?s=%24XAU&p=W&yr=5&mn=11&dy=0&id=p01970207355&a=949748838
My fractal chart provided the low:
https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=1&mn=1&dy=22&id=p09957355913&a=995415906
Today’s high so far for SILJ:GDX happened at fork resistance:
https://stockcharts.com/h-sc/ui?s=SILJ%3AGDX&p=D&yr=1&mn=6&dy=0&id=p08337460897&a=995813078
The Canadian dollar looked good before the Fed announcement and now it looks great:
https://stockcharts.com/h-sc/ui?s=%24CDW&p=D&yr=0&mn=11&dy=0&id=p90537631199&a=995104666