Select Stocks Send Signal

289
Fri, Aug 17, 2012 - 10:43am

Perhaps we have a new acronym on our hands? The SSSS. Yesterday, quite by chance, I noticed that several of the best mining stocks are making 6-month highs. Is this another signal that higher metals prices are right around the corner?

Yesterday afternoon, I opened an app on my phone that is programmed to follow the major indices as well as 15-20 miners. I only opened it to see how the overall stock market was faring (which is something I rarely do) and then I scrolled down to look at a few miners (which is something I do even less). A couple of them caught my eye. I saw GOLD (Rangold) first and noticed that it was pushing 100. Then I noticed AEM (AgNico Eagle) and thought it looked noticeably higher, too. I pulled up charts and saw that they are both at 6-month highs. Wait a minute here. Hold on just a second. Isn't it curious that two, top miners would be moving to new 6-month highs while the metals are still stuck in a trading range?

The last time GOLD was near 100 was last March when gold was near 1700. The last time AEM was $46 was last November, when gold was close to 1750. What does this mean? Beats the crap out of me! But seriously...this could be phenomena specific to these companies...OR...it could be just another sign of the impending resurgence and rally in the price of the metals.

The next question should be: Do any of the other miners look like this? Well, not really. I did find two of our old favorites that are perking up a bit following recent earnings "disappointments" and need to be watched.

And the HUI itself is looking better. I can't give an ALL CLEAR yet but...if the HUI can keep rolling higher and post a few closes over 460...there may finally be reason for optimism in the mining sector.

And, of course, any mention if the term "HUI" here in Turdland comes with the obligatory posting of the SMOKING HOT Carrie Underwood singing about it. (Neo-turdites should know that, to my partially-deaf left ear, "undo it" sounds like "the hui".) (And I'll never understand what she sees in that meathead hockey player.)

Carrie Underwood - Undo It (Official Music Video)

OK, after I wipe off the cold sweat in which I suddenly find myself drenched, it's back to business. In an absolutely stunning development, the metals surged this morning at the open, only to be CAPPED ONCE AGAIN near 1620 and 28.25. Though I know many of you are getting sick of this crap and are dying to see the metals break out, you must remain patient. Fundamentally, gold and silver are extremely strong and, even when left to their own devices, are poised to eventually break out. ( https://stream.marketwatch.com/story/markets/SS-4-4/SS-4-9338/) But, screw that. I don't want to wait much longer so maybe we can begin forcing the issue next week. Until then, here are graphic representations of our current predicament.

And I'm not sure which of these two stories make me feel more nauseous. You'll likely read the NYT story before heading off to barf and then return to watch the video before getting sick again. First up, all of the conniving, criminal thieves at MFingGlobal are apparently set to walk free. Hmmm, I've got an idea. What do you say you and I start an investment firm where we take client money and use it to place huge, extremely risky trades. Then, when it all breaks down and the clients lose their money (which they were told was "safe" and "segregated"), we simply laugh it off as "porous risk controls" and walk away. How do you think that might work out for us? Maybe just a bit differently than it has for the criminal Corzine and his merry band of politically-connected, reprehensible outlaws? https://dealbook.nytimes.com/2012/08/15/no-criminal-case-is-likely-in-loss-at-mf-global/?hp And don't forget that just last week, your Seventh Circuit Court of Appeals established as precedent that the theft of client funds is now completely legal. God Bless the U.S.A.!

https://www.businessweek.com/news/2012-08-09/bank-of-new-york-mellon-wins-appeal-on-312-million-lien

https://www.reuters.com/article/2012/08/10/us-sentinel-appeals-decision-idUSBRE87900T20120810

And then there's this. I found this video on ZH last night. It is a time-lapse progression of the ownership makeup of the U.S. treasury market. Note that, in 2003, the Fed had a nearly even ownership across the curve. Watch then how this progresses. Now, the Fed is nearly out of short-term treasuries but they have come to completely dominate everything with a maturity of 3 years to 30 years where they own as much as 70% of the market! Simply amazing. And disgusting! This is America, land of the free and home of the brave where capitalism and free markets create productivity by equitably deciding who wins and who loses. NOT!!!

Fed vs. Private Sector Treasury Holdings

Listen up, you witch. Your days are numbered. We're onto you and soon you and all of your monkeys will be sent scurrying into exile. Perhaps you will be lucky and be allowed the fate of that goon, Corzine. Perhaps not. In the end, it matters little. All that does matter is that the game is ending and you are going to lose.

Drago: You Will Lose

TF

About the Author

Founder
tfmetalsreport [at] gmail [dot] com ()

  289 Comments

  Refresh
Xeno
Aug 18, 2012 - 2:28pm

DPH, withall due

DPH, with all due respect,

Where are you coming from man? Don't you realize that gold is becoming an asset just as or better than cash? That it's being implemented as a Teir 1 asset?

After a revaluation why would anyone sell it instead of use it? Even if you only had 1oz. would you sell it or pledge it as collateral against a home loan or some such?

At that point, what physical holder would care about x% profit, it wouldn't matter since it would be a recognized asset which could be used in so many more profitable ways than just selling it to take profits and pay some taxes.

Now, traders and paper holders, that's a different story altogether if there'd be any gold paper hangers left around.

ReachWest
Aug 18, 2012 - 1:04pm

New Thread, fellow Turdites!

New Thread, fellow Turdites!

¤
Aug 18, 2012 - 12:44pm

3,500% profit approx.

Xeno.....with all due respect.

It could be said that anyone who didn't take profits at $55K might be moronic or at the least a bit greedy. My math could be off but it seems like an approx. 3,500% profit and knowing enough to sell at a possible peak is wise. I don't think they'll bid gold to $55K/oz. and even if they did, does anyone think they'll just keep letting it get higher and higher at that point?

When gold is revalued that high (if ever) is when nationalization happens shortly thereafter. We'll be fortunate to be able to redeem it that high of a price because there are so many things they can do before it ever gets to that point. I'd be happy with and wise to take 1,000% any day of the week and thinking that we will have lots of options in their monetary decision as they bid it higher is wishful thinking. Holding out for the moon and anything over 3500% is just asking too much imho.

What would your sell price need to be? I don't see $55K gold anytime soon. And I especially don't see them allowing private holders to be allowed at that point to own gold. $55K gold means things are so out of whack that the free market concept and the current fairness part of it will be gone also. Taking profits at whatever top forms is where it's at imho. Look at a gold chart of the early 1980's and I bet there were lots of people hoping for $900 or higher.

A moon shot to $55K and I'm mostly out of the market or gold/silver (not all of it) because at that point their decision will be long lasting and carry everyone for another 50-100 years hopefully. That's what history has shown unless it completely implodes.

Try getting $55K or higher at that point from anyone.

Monedas
Aug 18, 2012 - 12:33pm

SaTURDay !

It's kind of like "Open Line Friday" ! Monedas 1929 Comedy Jihad Inmates Run Assylum

Really-ClinkinKY
Aug 18, 2012 - 12:21pm

@ClinkinKY

Nah, a Redbird fan would spell Votto wrong.

ClinkinKYReally-
Aug 18, 2012 - 12:12pm

Damn Really-

You know your stuff:)

I agree with that lineup. We must be in the same area code.

Except it's Hannigan, not Harrigan:)

And Ludwick, not Ludwig. I'm starting to think you're A Redbird fan, not a Redleg fan:)

Key Economic Events Week of 9/21

9/21 8:00 ET Goon Kaplan
9/21 10:00 ET Goon Evans
9/21 Noon ET Goon Brainard
9/21 6:00 pm ET Goon Williams & Goon Bostic
9/22 10:30 ET Chief Goon Powell on Capitol Hill
9/22 Noon ET Goon Barkin
9/22 3:00 pm ET Goon Bostic again
9/23 9:00 ET Goon Mester
9/23 9:45 ET Markit flash PMIs for September
9/23 10:00 ET Chief Goon Powell on Capitol Hill
9/23 11:00 ET Goon Evans again
9/23 Noon ET Goon Rosengren
9/24 1:00 pm ET Goon Bostic #3
9/24 2:00 pm ET Goon Quarles
9/24 10:00 ET Chief Goon Powell on Capitol Hill
9/24 Noon ET Goon Bullard
9/24 1:00 pm ET Goon Barkin again & Goon Evans #3
9/24 2:00 pm ET Goon Bostic #4
9/25 8:30 ET Durable Goods
9/25 11:00 ET Goon Evans #4
9/25 3:00 pm ET Goon Williams again

Aug 18, 2012 - 12:12pm

Promises, promises - the can reaches Sept 6:

Four crucial days to decide Europe's fate

Whatever it takes: ECB bank chief Mario Draghi needs to deliver. Photo: AP

AFTER yesterday announcing a 5.5 per cent higher $4.5 billion profit for the nine months to June, ANZ chief executive Mike Smith said - as others have said in this profit reporting season - that he isn't running the business on the assumption that subdued trading conditions will soon end.

Even if Europe comes up with a plan to resolve its sovereign debt crisis, the world is in a ''multi-year debt workout,'' Smith says. The short-term outlook for Europe is, however, crucial and there are four deadlines looming: next Friday, September 6, September 12, and October 8.

September 6 is a big one. It's the day the markets want European Central Bank president Mario Draghi to definitively explain his July 26 promise to ''do whatever it takes to preserve the euro''.

The ECB met a week after he spoke, and Draghi announced that the central bank was considering ''outright open market operations'' in sovereign bond markets....

The ECB will step into the markets and begin buying sovereign bonds that Spain and Italy have already issued, focusing on shorter-term paper where its buying gets the most traction. The EU will separately buy new longer term bonds from Spain and Italy - but only if they agree to tighter EU fiscal controls.

Draghi said on August 2 that the buying would be ''of a size adequate to reach its objective''. That objective is a sustained rise in Spanish and Italian bond prices and a proportional fall in bond yields and borrowing costs.

Draghi wants to eliminate a ''convertibility discount'' in Spanish and Italian bond prices that reflects fears that the two nations will fall out of the euro system....



Read more: https://www.smh.com.au/business/four-crucial-days-to-decide-europes-fate-20120817-24e2t.html#ixzz23ulJnHc6

Meetings, and announcements, and meetings and announcements and all the while the fiat crumbles, structural weakness indeed. I'll bet they wish they could just take it down quietly too.

ClinkinKYdaveyboy
Aug 18, 2012 - 12:06pm

@ daveyboy

Serial killers also present a "normal" persona. (Unnecessary politically correct disclaimer--I'm not saying LF is a serial killer, just that some people "say what you want to hear") And I'm done with Calypso Louie.

tyberious
Aug 18, 2012 - 12:03pm

Symbolism?

Lets hope it's catching!

Really-
Aug 18, 2012 - 12:03pm

@ClinkinKY

How bout those Reds? I hope Dusty puts Phillips in the leadoff spot when Votto returns. I think Ludwig can handle batting behind Votto, plus he'll see even better pitches. Would want lineup to look like this...

Phillips

Cozart

Votto

Ludwig

Bruce

Frazier/Rolen

Harrigan

Stubbs

Go Reds! Or did you really want to talk baseball?

Subscribe or login to read all comments.

Contribute

Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 9/21

9/21 8:00 ET Goon Kaplan
9/21 10:00 ET Goon Evans
9/21 Noon ET Goon Brainard
9/21 6:00 pm ET Goon Williams & Goon Bostic
9/22 10:30 ET Chief Goon Powell on Capitol Hill
9/22 Noon ET Goon Barkin
9/22 3:00 pm ET Goon Bostic again
9/23 9:00 ET Goon Mester
9/23 9:45 ET Markit flash PMIs for September
9/23 10:00 ET Chief Goon Powell on Capitol Hill
9/23 11:00 ET Goon Evans again
9/23 Noon ET Goon Rosengren
9/24 1:00 pm ET Goon Bostic #3
9/24 2:00 pm ET Goon Quarles
9/24 10:00 ET Chief Goon Powell on Capitol Hill
9/24 Noon ET Goon Bullard
9/24 1:00 pm ET Goon Barkin again & Goon Evans #3
9/24 2:00 pm ET Goon Bostic #4
9/25 8:30 ET Durable Goods
9/25 11:00 ET Goon Evans #4
9/25 3:00 pm ET Goon Williams again

Key Economic Events Week of 9/14

9/15 8:30 ET Empire State and Import Price Idx
9/15 9:15 ET Cap Ute and Ind Prod
9/16 8:30 ET Retail Sales
9/16 10:00 ET Business Inventories
9/16 2:00 ET FOMC Fedlines
9/16 2:30 ET Powell Presser
9/17 8:30 ET Philly Fed
9/18 8:30 ET Current Acct Deficit

Key Economic Events Week of 9/7

9/9 10:00 ET JOLTS job openings
9/10 8:30 ET Initial jobless claims
9/10 8:30 ET PPI
9/10 10:00 ET Wholesale Inventories
9/11 8:30 ET CPI
9/11 9:45 ET Core CPI

Key Economic Events Week of 8/31

9/1 9:45 ET Markit Manu Index
9/1 10:00 ET ISM Manu Index
9/1 10:00 ET Construction Spending
9/2 8:15 ET ADP employment
9/2 10:00 ET Goon Williams
9/2 10:00 ET Factory Orders
9/3 8:30 ET Initial jobless claims
9/3 8:30 ET Trade Deficit
9/3 12:30 ET Goon Evans
9/4 8:30 ET BLSBS

Key Economic Events Week of 8/24

8/24 8:30 ET Chicago Fed Idx
8/25 10:00 ET Consumer Confidence
8/26 8:30 ET Durable Goods
8/27 8:30 ET Q2 GDP 2nd guess
8/27 9:10 ET Chief Goon Powell Jackson Hole
8/28 8:30 ET Pers Inc and Consumer Spend
8/28 8:30 ET Core Inflation
8/28 9:45 ET Chicago PMI

Key Economic Events Week of 8/17

8/17 8:30 ET Empire State Manu Idx
8/17 Noon ET Goon Bostic
8/18 8:30 ET Housing Starts
8/19 2:00 pm ET July FOMC minutes
8/20 8:30 ET Jobless claims
8/20 8:30 ET Philly Fed
8/20 10:00 ET LEIII
8/21 9:45 ET Markit flash PMIs July

Key Economic Events Week of 8/10

8/10 10:00 ET Job openings
8/11 8:30 ET Producer Price Idx
8/12 8:30 ET Consumer Price Idx
8/13 8:30 ET Initial jobless claims
8/13 8:30 ET Import Price Idx
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Unit Labor Costs
8/14 8:30 ET Cap Ute and Ind Prod
8/14 10:00 ET Business Inventories

Key Economic Events Week of 8/3

8/3 9:45 ET Markit Manu PMI July
8/3 10:00 ET ISM Manu PMI July
8/3 10:00 ET Construction Spending
8/4 10:00 ET Factory Orders
8/5 8:15 ET ADP employment July
8/5 9:45 ET Markit Service PMI
8/5 10:00 ET ISM Service PMI
8/6 8:30 ET Initial jobless claims
8/7 8:30 ET BLSBS for July
8/7 10:00 ET Wholesale Inventories

Key Economic Events Week of 7/27

7/27 8:30 ET Durable Goods
7/28 9:00 ET Case-Shiller home prices
7/29 8:30 ET Advance trade in goods
7/29 2:00 ET FOMC Fedlines
7/29 2:30 ET CGP presser
7/30 8:30 ET Q2 GDP first guess
7/31 8:30 ET Personal Income and Spending
7/31 8:30 ET Core inflation
7/31 9:45 ET Chicago PMI

Key Economic Events Week of 7/20

7/21 8:30 ET Chicago Fed
7/21 2:00 ET Senate vote on Judy Shelton
7/22 10:00 ET Existing home sales
7/23 8:30 ET Jobless claims
7/23 10:00 ET Leading Economic Indicators
7/24 9:45 ET Markit flash PMIs for July

Forum Discussion

by 11IMIX, 5 hours 10 min ago
by Titus Andronicus, 5 hours 12 min ago
by 11IMIX, 5 hours 20 min ago
by JasonMcMilan, 6 hours 35 min ago